Many bankers do not see how new mobile payments providers are stealing their revenue and deposits.
It is hidden because the banks never even see all the transactions. But increasingly consumers have the option to pay with their mobile device which captures funds from a bank account and stores them on the phone for payment. Such phone payment marketers at PayPal, Kash, GoCardless, Transferwise, Venmo, Square, Coin, Clinkle, Tabbedout, and LoopedIn accomplish this with separate or prepaid accounts as illustrated in the article, 10 Ways to Pay With Your Mobile Phone. These providers are in addition to the retailers like Target, convenience store chain Cumberland Farms and Starbucks who market their own payment cards and phone payment services.
It is hidden because the banks never even see all the transactions. But increasingly consumers have the option to pay with their mobile device which captures funds from a bank account and stores them on the phone for payment. Such phone payment marketers at PayPal, Kash, GoCardless, Transferwise, Venmo, Square, Coin, Clinkle, Tabbedout, and LoopedIn accomplish this with separate or prepaid accounts as illustrated in the article, 10 Ways to Pay With Your Mobile Phone. These providers are in addition to the retailers like Target, convenience store chain Cumberland Farms and Starbucks who market their own payment cards and phone payment services.
Few doubt that in coming years mobile payments will rule the
day. The result for banks is that
deposit balances and transaction revenues are lost while consumers keep the
account with the bank and related costs.
They just send their balances, revenues and payments to these
alternatives. And the competitive
alternatives promise greater online and in-store shopping security by phone
with no card present, as shown by the LoopedIn service below.
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