News

00:01 AM
Bryan Yurcan
Bryan Yurcan
Slideshows
Connect Directly
Facebook
Twitter
Google+
RSS
E-Mail
50%
50%

3 Non-Bank Payment Players to Watch

Banks are always at risk of being disintermediated in the payments space; here are some potential disruptors to keep an eye on.
Previous
1 of 3
Next

Amazon Fire Phone

 

 

While some critics have derided Amazon's recently released smartphone as being only good for allowing you to buy more Amazon products, the fact is the Fire Phone has a chance to be a big player in mobile payments.

The phone already makes it easy for Amazon customers to buy Amazon stuff via the click of an app, in this case one called FireFly, which allows users to view an object with the smartphone camera and call it up for purchase from Amazon if desired.

But Amazon isn't stopping just there. Last December it acquired mobile payments startup Gopago, as well as offering payments services like Checkout by Amazon. With its large built-in customer base, Amazon could soon rival PayPal and perhaps even go further in the world of online and mobile payments.

 

Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio

Previous
1 of 3
Next
Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Byurcan
50%
50%
Byurcan,
User Rank: Author
7/18/2014 | 9:19:45 AM
Re: Whatsapp payments
Good point. Obviously, it's all speculationa s to what Whatsapp will ultimately become at this point, but it's interesting to think about.
lojo1
50%
50%
lojo1,
User Rank: Apprentice
7/17/2014 | 11:27:19 AM
Whatsapp payments
I'd love to see how Whatsapp could add to the phone payment table? I have a feeling because Facebook bought them out, they will be more focused on working with Facebook than anything else!

Laurence - Natwest UK telephone banking number
Byurcan
50%
50%
Byurcan,
User Rank: Author
7/17/2014 | 11:21:20 AM
Re: Snapchat files trademarks for electronic payments
Interesting, not very surprising either. I think these mobile messaging companies, snapchat, whatsapp etc, realize that just simply enabling messaging is not the endgame, and getting into something like p2p payments could keep them relevant for many more years.
myork301
50%
50%
myork301,
User Rank: Apprentice
7/17/2014 | 11:04:46 AM
Snapchat files trademarks for electronic payments
Bryan & Jonathan - what are your thoughts on the latest with Snapchat filing trademarks this week to process electronic payments in the future?
Byurcan
50%
50%
Byurcan,
User Rank: Author
7/17/2014 | 9:56:15 AM
Re: Non-Bank Payments Players
Yes Rogers did do that, though I'd image Google/Apple have no interest. But who knows.
Byurcan
50%
50%
Byurcan,
User Rank: Author
7/17/2014 | 9:55:27 AM
Re: Banks Strategies to counter the disruption
Thanks for your comment. I do think "co-opetition" is something banks should explore more. I recently sat in on presentation given by State Street and Citi about how they worked together in one instance in a "co-opetition" type of way. That may be something banks have to consider to survive and thrive going forward.
tvjoseph
50%
50%
tvjoseph,
User Rank: Apprentice
7/15/2014 | 12:08:53 AM
Banks Strategies to counter the disruption
You have very rightly highlighted the potential disruptors within the payment domain. As Professor Christensen Clayton, very rightly pointed out in his pathbreaking work "Disruptive Innovation" these disruptions begin in very innocuous way right at the bottom and then it moves up and consumes the product or service banks provide. To ignore this threat would be to the banking industry's peril. The threat is not on the real transactions involved within banking however the delinking of customer data behind the payment transactions which will hurt banks more. 

What do you think are banks strategies to counter this threat ?

Do you think co-optition is the way out i.e banks coming together to form a  platform against a common enemy ?

Would like to hear your views on this
Jonathan_Camhi
50%
50%
Jonathan_Camhi,
User Rank: Author
7/14/2014 | 4:01:34 PM
Re: Non-Bank Payments Players
Good point Bryan. I wonder where that line is though that they would have to get a banking charter. In Canada Rogers, a telco, actually went through with getting a banking license (which is very difficult to get there) to make a big play in mobile payments. I'm not sure when a company like Google or Apple would reach that point that they would have to do something similar.
Byurcan
50%
50%
Byurcan,
User Rank: Author
7/11/2014 | 11:00:14 AM
Re: Non-Bank Payments Players
I'll guess they will do as much as they can in financial services without "officially" having to become a bank, and thus be regulated like one. That's something they're not interested in.
Jonathan_Camhi
50%
50%
Jonathan_Camhi,
User Rank: Author
7/11/2014 | 10:50:46 AM
Non-Bank Payments Players
As someone who has used Whatsapp for a while now, I think the potential for it to become a payments platform is really interesting. It could be a great way to send P2P payments across borders, say, for parents with a kid studying abroad or something.


I think in the larger picture it will be interesting to see if any of these players go beyond payments to offer other banking services. Square has used its market share in small merchants to start offering commercial loans. Will any of these companies try something similar with personal loans?
Register for Bank Systems & Technology Newsletters
White Papers
Current Issue
Bank Systems & Technology Oct. 14, 2014
Bank Systems & Technology's new Must Reads is a compendium of our best recent coverage of customer analytics. Learn what big data means for banks, meet Wells Fargo CDO Charles Thomas, find out how to connect with your Gen Y customers, and more.
Slideshows
Video
Bank Systems & Technology Radio
Archived Audio Interviews
Join Bank Systems & Technology Associate Editor Bryan Yurcan, and guests Karen Massey and Jerry Silva from IDC Financial Insights, for a conversation about the firm's 11th annual FinTech rankings.