Growth, Globalization and AI: WePay's Week in Payments
This week, it was announced that the US economy had its weakest quarter in three years, at least in terms of GDP growth, with first quarter 2017 GDP growth of only 0.7%. What does that have to do with payments? Not necessarily too much except that the payments industry in general and fintech in particular is growing a great deal faster than that.
For example, there is a report that collectively Alipay and WeChat enabled almost $3 trillion in digital payments in China in 2016. In 2012 that number was $81 billion, so four years has seen over 350% growth. The news is based on a report from the UN-based Better Than Cash Alliance which reports that “the growth is at least in part because the government has been actively looking to boost financial inclusion and growth, and the role of digital payments are a pivotal focus for the increase.”
A CNBC interview with Synechron CEO Faisal Husain finds him saying that “there are many cases where Asia is leapfrogging perhaps the West, especially in emerging markets where fintech is playing a major role in financial inclusions in payments and transfers and microlending.”
Meanwhile, Dataconomy argues that fintech can and should fuel payment success and global expansion for all kinds of US businesses. The Dataconomy piece cites an Accenture study that global e-commerce could reach $3.4 trillion in 2017.
Nasdaq reports that Federal Reserve Governor, Lael Brainard, wants The Federal Reserve to give input on future rules governing how technology companies move into consumer lending markets.
Putting this altogether it is clear that global e-commerce payments are critical and growing and could be very important to the future of the US economy.
In other payments industry news and coverage, NetworkWorld reports on how e-commerce giants are moving to gain control of payment gateways and protect their ecosystems.
Two very different segments of the industry, retail banking and fraud protection are also turning to AI and machine learning for the future according to The Financial Brand and PYMNTS.com respectively.
Finally, a more reflective read is an interview by PYMNTS.com with PayPal CEO Dan Schulman on the power of partnerships as PayPal moved from a competitive relationship with other payment providers to more of a cooperative approach.