We’ve got a roundup of global payments news including e-commerce, mobile and fintech innovations in major markets. The global mobile payments market is now worth an estimated $600 billion as new technologies take hold such as contactless payments, wearable payments, mobile wallets and digital currencies.
Westpac will introduce a new line of wearable payments featuring tap-and-pay and wireless payments products. The UK is finally rolling out check imaging which should reduce payments times from six working days to one day and allow interbank mobile check deposits.
Japanese banks will drop 33,000 financial workers due to AI, automation and robots replacing lower level banking functions. Visa beat Wall Street’s profit projections with latest quarterly payment volumes rising 9.8 percent to $1.93 trillion, 43% of volume in the US. Uber and UK Barclays Bank join forces to launch a new Uber Visa card in the US.
Also in the US, HSBC introduced a new metal Premier World Elite Mastercard with perks including 50,000 bonus reward points and $100 Uber ride credit. A new McKinsey report warns traditional banks to watch out for the impact of Amazon on financial payments and to protect the 40% of potential revenue at risk by 2025.
Global Next Generation Mobile Payments Markets 2018-2023: Smartphones, Wearables, and Implantable Technology
The global mobile payment segment has experienced exceptional growth in the last five years, establishing a $600 billion market by 2017. The market has moved well-beyond its origins of niche status and is now poised for adoption of new payment technologies such as next generation contactless payments, converged mobile wallets, integration of digital currency (like Bitcoin), wearable payment solutions, and payments through implanted chips into the human body. The overall electronic payments market will also accelerate transformation towards a cashless society. Via businesswire.com
Westpac to work with iconic design gurus for wearable payments play
Westpac is to work with top lifestyle designers to create a range of wearable tap and go payment attachments that can be fitted to consumer accessories. With Westpac’s PayWear range, customers will be able to tap and pay in the same way they regularly do with their debit card, without having to reach for their wallet or smartphone, through a new range of waterproof and battery-free wearable accessories. Via Finextra.com
UK begins roll out of cheque imaging
The UK is beginning the phased roll out an image-based cheque clearing system that will slash processing times from six ‘weekdays’ to one day and pave the way for the introduction of interbank mobile cheque deposits. This story would seem to be news only because it has taken the UK so long to “get it done”. As to needing QR Codes to deposit checks, really? US retail banks have allowed that via simple check photos for a couple of years without requiring information beyond what’s already standard on US checks. And the UK is supposed to be a hotbed of FinTech development, really? Via finextra.com
Japan’s banks plan 33,000 job cuts in digital downsizing
Japan’s megabanks are planning to make huge, long-term cuts to their workforces as they increasingly turn to artificial intelligence (AI) and automation in a bid to streamline operations and cut costs. Leading the way is Mizuho Bank which reportedly plans to slash a third of its global workforce, 19,000 jobs in all, over the next ten years, according to Japanese media. Automation and greater use of AI and robots will be used to replace the absent staff. It already employs a robot in some of its branches to advise customers on asset management queries. Via finextra.com
Visa’s profit beats on higher card swipes, stock at record
(Reuters) – Visa beat Wall Street’s quarterly profit expectations on Wednesday helped by more people using its world-wide network to pay for everything from groceries to Uber rides, sending its shares to a record. Visa has seen an uptick of card payments in the U.S. as consumer spending, which accounts for more than two-thirds of U.S. economic activity, remains at a healthy clip. The company’s U.S. market share for card payments has climbed steadily as consumers switch from cash and checks. Via reuters.com
Uber Teams Up With Barclays To Launch Credit Card in U.S.
Yes, that’s right, the car service app has teamed up with UK bank Barclays to launch its own credit card. “Obviously this has been a long process, but the idea to have our own credit card was something we got from listening to our customers,” Judy Zhu, business development at Uber told Bank Innovation. The card, powered by Visa, will go live on November 2. The card has no annual fees. Via bankinnovation.net
HSBC adds a metal card for big spenders
HSBC Bank USA is the latest to issue a credit card made of metal, designed for affluent customers who travel often. The Premier World Elite Mastercard delivers high-spending users a solid introductory bonus with a reward of 50,000 points—worth $750 in air travel—for those who spend at least $4,000 in the first three months, plus a set of other perks including a $100 annual statement credit for Uber and Lyft rides, HSBC announced on Wednesday. Via paymentssource.com
Banks Need to Fear Amazon’s Finance Ambitions, McKinsey Says
Banks around the world have spent the past few years preparing for competition from small, nimble technology startups. Financial institutions have parried the threat from fintech firms by incorporating some of their innovations through partnerships and in-house coding teams, according to McKinsey & Co. In its annual banking report, McKinsey said that the industry needs to continue its digital makeover to protect the up to 40 percent of revenues at risk by 2025 and prepare for competition from so-called platform companies like Bezos’s Amazon.com Inc. Via bloomberg.com
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