The first 4 parts of this 5 part series focused on payment innovation, the difference between Open Banking vs. PSD2, new banking and payment services and the latest fraud prevention measures to combat fraudsters. This final installment explores ‘technology giants’ and the emerging threat they may pose to current payment services providers as they make moves to introduce their own proprietary payment schemes.
The term ‘tech giants’ refers to those technology organizations that have come to dominate our lives over the last decade: Google, Amazon, Facebook, Apple, etc. In other words, the organizations that we consistently interact with on a weekly, often daily basis. Let’s face it, can you remember the last time you went a day without visiting one of those sites and taking advantage of one or more services it offers?
One of the reasons they’ve become so pervasive is that they are constantly evolving their service offerings. These giants are constantly gathering tons of data on visitor behavior, personal details, customer likes and dislikes, and more importantly using data analytics to predict what consumers will do next and what functionality they gravitate to. In a world that is used to instant gratification and getting more and more comfortable with being able to get everything done in ‘one-stop’, it’s not hard to envision these tech giants launching their own successful payments services.
For a deeper dive into what Open Banking, PSD2, and the threat of tech giants means to existing payment services providers, download the full whitepaper by Marcus Hughes, Head of Strategic Business Development, How Banks Can Create Winning Propositions: While Complying with PSD2.
Follow these links to see other posts in this series about the implications and opportunities presented by new payment regulations:
The World Is Watching: PSD2 and Open Banking Drive Innovation, Part 1
Open Banking and PSD2: What’s the difference and Why Should You Care?, Part 2
New Payment Services: Financial Fraud Prevention Measures, Part 4
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