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E-payment threat to bank revenue

The increasing popularity of online payment providers like PayPal and Amazon Checkout, combined with the emergence of mobile commerce, threatens to leave banks lagging in the e-commerce world, accordi...


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Different horses,different courses

As world is getting flatter and shopping global, e-payments will be increasing. There will be a trend where payment industry is heading. One is global payments, where credit card based solutions will dominate. Other path is local solutions for e-payments. For example in Finland over 70 % of online shopping is done wth local bank based e-payments.  Same rule applies in Denmark and Sweden. Next trend is not mobile, it is already here, but e-invoice.

Some e-stores are global, like Amazon etc. But most of the e-stores are and will be local. For the local companies it is obvious to choose tools which are suitable for local markets.

Payment industry is full of new innovations, but at the end of the day, only solutions which are accepted by customers will survive.

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Comments: (2)

A Finextra member
A Finextra member 30 September, 2008, 10:03Be the first to give this comment the thumbs up 0 likes

Why would the globe-trotting consumer (even internet) want to switch horses every time they change course?

A Finextra member
A Finextra member 01 October, 2008, 11:36Be the first to give this comment the thumbs up 0 likes

There are no reasons why consumenrs has to change horses for different courses, but some horses (consumers) prefer to run only at the home courses (local e-stores) while some sprinters prefer to run both local and global courses.

Based on same assumption this is reason why it is hard to shop at the local market, when seller prefers only cash. Even world is flatter, cash is king at the most of the markets.

For the banks world wide credit earnings are drying up. New revenue streams for the banks are coming from e-payments, e-identification and e-invoices.