Surveys highlight Fintech futures: WePay's Week in Payments
It’s been a week of surveys, reports and analysis. Four completely different reports based on surveys and market analysis were released this week on four different topics but with one common theme: continued growth in fintech and payments, especially mobile. The first two look at the future of the mobile payments market, one for just 2017 and the other extending out to 2024. According to Payments Cards and Mobile, Jupiter Research is forecasting an increase in the global value of mobile P2P payments of 40% to $540 billion by the end of 2017. They also forecast that the value of digital payments across the world would reach $3.9 trillion in 2017, an increase of 14% year-on-year.
Meanwhile, Technology News Extra is reporting that Zion Market Research predicts ‘drastic growth’ in the near future in the mobile payments market. They also predict that fraud and online theft are the main obstacles to the growth of mobile and online payments and that one of the more unusual causes for the growth in digital and mobile payment technology is government support.
Mobile Payments Today reports on another survey from the Aite Group that looks at how Millennials are acting around mobile payment technology. The report concludes that this consumer segment is the most likely to be annoyed by false declines and most likely to abandon a bank or merchant for that reason. In fact the survey suggests that “more than 42 percent of respondents said that a false decline would motivate them to leave their banking institution altogether.”
Mobile Payments Today also reported on a Javelin Strategy and Research report that highlights the huge growth in fraud resulting from the adoption of mobile devices. “The growing prevalence of mobile banking, mobile commerce, and financial activities such as person-to-person payments offers fraudsters rich opportunities for phishing login and payment credentials.”
In other news, Reuters is reporting that the NY State banking regulator is suing the US OCC (Office of the Comptroller of Currency) over its approval of special charters for online lenders and fintech companies in what it contends is a ‘reckless folly.’
Moving on to opinion and background, Hassan Mansoor in Customer Think discusses how online payment platforms influence the customer relationship for B2C platforms. It’s a solid piece but here at WePay we would argue it doesn’t go far enough and you can take a look at how we think integrated white-label payments can transform a platform business in a webinar we produced on the topic.
American Banker meanwhile argues that the future of fintech lies in the backend and infrastructure. Probably a good position for the banking industry to take but perhaps less popular a position among fintech startups.
Finally, CardFellow takes a look at the Commerce Payment Systems fraud scandal and how it came about and delineates some takeaways that can help others avoid similar fraud in the future.