Asia, China, PSD2 - Global Payments Changes: WePay's Week in Payments
It’s not really news that fintech, digital and online payments are rapidly growing worldwide, especially in Asia, but the extent of that growth is still surprising. A new report, covered by China Money Network, says that Alipay and Wechat Pay have enabled USD 2.9 trillion in Chinese digital payments in 2016, a 20-fold increase over the past four years.
The data shows that digital payments, using existing platforms and networks, provide access to a wider range of digital financial services, expanding financial inclusion and economic opportunity throughout China and neighboring countries.
The shift from cash to digital payments could increase GDP across developing economies by 6% before 2025, adding USD 3.7 trillion and 95 million jobs, according to a McKinsey Global Institute report.
Consolidation in Southeast Asia is likely to see the players, already very large, grow further and coordinate efforts to push economies in the region even more toward digital payment technologies. An example is Ant Financial merging with HelloPay as reported by Mashable.
Elsewhere around the globe, PYMNTS.com reports that Amazon Pay is expanding to France, Italy and Spain.
In other news that will eventually affect the global payments market, Mastercard has announced it is running trials on credit cards with built-in biometric devices, specifically a fingerprint scanner. Gone are the days of sending your teenager to the grocery store with your credit card to get the milk you forgot…
On the more thoughtful and reflective front, Pascal Bouvier has a long essay on the topic of unbundling and how it could be applied in the fintech space, most specifically to banks. It’s a fairly difficult-to-read piece but has some good details to highlight how the core concept of unbundling can be applied to disrupt existing industries.
Finally, in case you aren’t tired of the topic of the Revised Payment Services Directive (PSD2) and how it is going to remake the banking industry in Europe, PaymentEye has a good story about the reaction of industry leaders to the proposals in PSD2.