Stanley’s Musings - Fintech, Banking & Payments News #2

Thoughts on fintech, banking, payments, risk management, AI, going green, economics, business and much more…

The latest edition is now available - HERE 

Digital Payments - US still in the Dark Ages

Even though the US is home to both Silicon Valley and Wall Street, yet it has long seemed in the dark ages on digital payments.

Just consider that until 2018 card purchases still required hand signatures, 15 years after Europe switched to chip-and-pin. Then the cosy credit-card duopoly, consisting of Visa and Mastercard, works with the banks to issue cards, with the result that there has been too little competition and sky-high profit margins. 

The key to making payments more competitive in the US is to create a new network of financial plumbing: a “real-time” interbank-payment system that will permit near-instant and cheap transfers.

Read more from The Economist -Fintech comes to America at last

 

The Wirecard Story

In just a decade, Wirecard went from a little-known German payment processing company to one of the most valuable financial services firms on the stock market with a valuation of 17.5 billion dollars. The company was so hyped by the investors, that they ignored the allegations of fraud made by the press. However, it all unraveled last week when its former CEO, Markus Braun, was arrested. This is the biggest financial scandal since the collapse of Enron in early 2000s so buckle up, it's going to be a bumpy ride.

Fintech's World

The fintech industry welcomed multi-billion dollar investments in 2019. Where is the most growth, and how are incumbents dealing with digital disruption?

Since the introduction of the first credit card with a magnetic stripe in 1966, financial technology has come a long way. Silicon Valley may not have birthed the term “fintech”, but it has certainly helped catapult its applications into the mainstream.

Leveraging everything from basic apps to the blockchain, the changing dynamics of fintech are creating new investment opportunities every day, growing its appetite with every new megadeal.

Check out the graphic which highlights the global growth of the fintech industry, the services with the most staying power, and major M&A developments of the past year as traditional institutions scramble to deal with this digital disruption.

Read more HERE

Consumers Still Love Plastic more than Mobile Payments

From The Financial Brand –

“A study from TSYS finds that debit continues to be the most preferred payment type, although to a decreasing degree. The choice of payment varies significantly by merchant type and demographic group. In addition, mobile banking use continues to increase, while mobile POS payments have decreased.”

Read more>>

Apple Pay: lessons for Cupertino

From Finextra -

“One could be more forgiving and attribute bad UX to "teething problems", but not when it comes to the world's largest company and expansion launch (rather than greenfield ops).

Apple should have sorted all the issues I am raising here before launching in the US, let alone Europe - they have adequate resources and skills. Them not doing it is a continuing of their typical laissez-faire bravado.”

Read more>>

 

Lloyds Bank looks to NFC technology to end automated security calls

From The Inquirer -

“LLOYDS BANK has been trailing new mobile banking technology that could bring and end to automated security calls and chip and pin readers.

The company announced that it has been experimenting with new technology called 'tap to bank' that allows owners of NFC-equipped Android smartphones to set up mobile banking by tapping a debit or credit card against the handset.

Lloyds said that this technology, which is being tested by 125 customers, could bring an end to tedious automated phone calls when it launches in the 'coming months', if the trial is well-received.”

Read more>>