24 October 2017
Ward Hagenaar

Ward Hagenaar 2015

Ward Hagenaar - Connective Payments

8Posts 49,566Views 11Comments
Innovation in Financial Services

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.

Be my wallet

09 November 2011  |  6662 views  |  0

In wallet war times it makes you wonder whom you
should regard as your best partner. Should your friends be the same as you are,
very different, have the same market reach, etc. For a bank working with the
likes of Google or Telco’s can be slightly intimidating. They have a huge
international reach beyond comparison to even the largest banks customer base.
This international aspect will make them have different interests, interests of
their own, with other partners, in other regions, in other value chains.  

But as your reach as a bank is limited you cannot
establish new payments solutions yourself, how innovative the design might be.
So partnerships are needed, with other banks, with the payment card brands, Telco’s or the `new players`. Setting new standards is hardly an option due to the immense timelines, investments and risks involved.

An established new player is PayPal. One that has been actively working with banks lately and I can see the match. PayPal is uncompromisingly customer centric oriented and adds value through this to banks.
Offering banks every niche use case they can imagine and preventing banks to
have to invest themselves. PayPal is not a huge threat to banks as they only
provide the payment as a service. PayPal has an international reach but not a
local strong presence as large Telco´s have. Who owns the customer is currently
not the issue. It can be expected PayPal could become a provider of consumer
credit or even a scheme with member banks like MasterCard and Visa in the
future. They would still be a great outlet for any market oriented bank. The
true competitors for PayPal are Telco’s, Apple, Facebook and Google who cherish
a broader consumer intimacy relation due to their broader service portfolio.

My expectations for Google are more or less similar, they could be a great partner, huge and extremely commercial and marketing driven like
PayPal. This market approach is what banks need to bring new services to the
market. I believe they will bring more added value than Telco’s, just defending
their place in the value chain.  

Who can imagine Apple or Facebook joining forces with banks? They would bring in a large fan like audience, an unusual asset for banks. What would it look like? They will never restrict to one bank but changes to become the local partner for your country should not be missed.

The more classic partner are the major brands Visa and MasterCard. They will have to come in any way to provide payment brand recognition, extremely important in new circumstances. Their strongest asset is a huge one, their international brands and secure networks, not to be underestimated so why not offer issuing banks white label wallets from this perspectives? Finally the consumer will determine the ranking of preferred brands in their wallets.

Please feel free to add your thoughts to start a discussion on who will provide the wallet to the consumer.

TagsCardsMobile & online

Comments: (1)

Comment on this story (membership required)

Latest posts from Ward

The True Value of Mobile Transactions

05 November 2012  |  5108 views  |  0 comments | recomends Recommends 0 TagsCardsPaymentsGroupInnovation in Financial Services

Instore remote mobile payments reduce cash effectively!

10 January 2012  |  6368 views  |  0 comments | recomends Recommends 0 TagsCardsMobile & onlineGroupInnovation in Financial Services

Be my wallet

09 November 2011  |  6662 views  |  0 comments | recomends Recommends 0 TagsCardsMobile & onlineGroupInnovation in Financial Services

Who will be the payments processor of the future?

09 September 2011  |  8887 views  |  0 comments | recomends Recommends 0 TagsCardsPost-trade & opsGroupInnovation in Financial Services

Ward's profile

job title Business consultant and partner
location Hilversum
member since 2011
Summary profile See full profile »
Payments and cards expert with experience on all perspectives (financial institution, processing, vendor). Big network in the Benelux, available to support startups in the payments and loyalty scene....

Ward's expertise

Member since 2006
8 posts11 comments
What Ward reads
Connective Payments
Ward's blog archive
2015 (1)2012 (2)2011 (5)

Who's commenting on Ward's posts