Creating Strategic Value through Financial Technology

CHAPTER 6The Payments Niche

The means and methods by which people pay for goods and services has continually evolved throughout history—from commodity‐bartering economies to the proliferation of modern fiat money to checks to credit and debit cards. Today, this evolution continues with mobile apps and online platforms increasingly being used and streamlining payments processes to create a more efficient economy. In this chapter, we take a closer look at emerging payment trends and FinTech innovations, including retailer‐specific mobile apps that allow customers to order and pay from their mobile devices, mobile wallets that hold card and account information to allow mobile payments to be made virtually anywhere, solutions that allow merchants to accept these mobile payments, and mobile apps offering direct peer‐to‐peer payments. Additionally, we take a closer look at blockchain technology, the FinTech innovation behind emerging digital currencies, and identify potential areas where blockchain could impact financial and payment services. While this chapter does not cover all of the emerging FinTech payments solutions, it does address the core competencies of the space and takes into account some of the main players and emerging trends in the industry.

TRENDS TO WATCH

Movement to a Cashless Society

In the United States, according to a recent article, cash remains king as it was used in 32 percent of all transactions, the highest of any payment method.¹ Cash was particularly strong ...