WePay's Week In Payments: AI, Mobile Growth and White House Policy
This week’s round-up of payment industry news is a bit of a mixed bag, with contributions from a few sources not normally associated with the payments industry: Twitter and the White House. Nevertheless, an overarching theme can be seen if we take a step back. The following stories all have something to do with the future of FinTech in general and the payments industry in particular.
A Framework for FinTech
The White House issued a statement of principles which it calls a policy framework for the payments industry. This is a big step forward for governmental understanding of the FinTech space. It’s well worth a perusal.
AI in Banking
Although AI (Artificial Intelligence) in banking and the financial sectors has a long history, almost as long as that of AI itself, the reality is that it still hasn’t made significant penetration except in highly specialized sectors. There are many reasons for this according to The Financial Brand, with some of the biggest including siloed data and an inability to start the process of analyzing data and drawing useful insights from it to kickstart AI and machine learning projects.
Bye Buy Twitter
TechCrunch broke a story this week about Twitter officially backing away from ecommerce to focus on its core offerings,in the process dropping its ‘buy’ button efforts in the area of contextual commerce (or commerce in place within a twitter conversation). Twitter isn’t stopping completely. It will maintain the ability to make donations to nonprofits but all other ecommerce efforts are abruptly halted.
Mobile Payments Explode in APAC
Mobile World has a story about the expected boom in online payments globally, driven by the Asia Pacific region. Allied Market Research is predicting that the global mobile payments market willbe worth $3.39 trillion by 2022.
The legal marijuana industry has had a lot of trouble establishing itself with any form of payment more advanced than cash, partly due to federal regulations around the industry and the reluctance of banks and processors to get involved with what they see as high risk customers. And it is a chicken and egg situation since pure cash-based businesses are more prone to crime. But PaymentsSource says that this situation is changing as payments companies engage with this market. [Full disclosure: WePay’s bank and card network partners preclude us from serving platforms and merchants in this space, so without passing any judgment of our own we’ve had to say No to a bunch.]