The Payments’ Networks Next Real Threat

The Payments’ Networks Next Real Threat | PYMNTS.com.

Yes, the launch of Paym in the UK has attracted a lot of attention in the US, inspired by the simplicity of enabling P2P to individuals based on their mobile phones. There is nothing more ubiquitous on this day in age than the footprint of mobile phones, which everyone recognizes is larger than payment cards, even in advanced economies.  But as this article suggests, the real threat of this application lies in the potential of growing into the acceptance marketplace to compete with the traditional processing networks. Until recently, this was mainly driven by non-bank innovators. However, we are now seeing a big push-back from the banking community to step into this space, realizing that they have the comparative advantage of owning the customer (the bank account). This is bad news for the non-bank players, but it may be good news for competition if they succeed in lowering acceptance costs across the board. It may sound counter intuitive but it could be that the the dominant players are the ones giving the final push to change this marketplace.

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This entry was posted in Banking, competition policy, emoney, Faster payments and tagged . Bookmark the permalink.

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