From Payments Eye
“The threat to UK lenders by challenger banks like Metro Bank and Virgin Money pales in comparison to that posed by PayPal, according to new research.
A study of 2,000 banking customers by YouGov and the law firm Pinsent Masons found that nearly a quarter were more likely to switch to a digital payments service, such as PayPal or WePay, than to a mainstream bank in the next two years.
Just 13% said that they would consider a switch to a new bank in the same timeframe, and fewer than one in twenty would move to a technology company such as Facebook or Google.
“I suspect people see them as trustworthy because they’re already proven in the payments space,” John Salmon, head of financial services at Pinsent Masons, told the Financial Times.”
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