On October 2014, a payment revolution was introduced into our lives: Apple released its Apple Pay. Ten months later it was time for Samsung to launch its similar feature and the Samsung Pay was born. This new method of payment changed our way of consuming, it made it faster, safer, more comfortable and easier, as you don’t need anymore to carry your wallet everywhere; a smartphone or smartwatch transforming automatically in your credit card.
But still, there is a catch. Apple Pay and Samsung Pay don’t work with every bank, and each one works with different ones. When a few years ago people were changing their mobile operator to get the phone of their dreams at a better price, today people are thinking about changing their bank in order to be able to pay with their smartphone. Seen from another perspective, it also means that you’ll tend to choose or change your bank according to the device that you own.
Another important technological player is coming into the financial game, none other than Facebook. At the same period, the internet giant launched its own payment solution through Facebook Messenger, where sending money to your friend while you are chatting became possible.
What does this all mean? Well, users need every time less their bank as when they need to transfer some money they can use Facebook, and when they want to buy something they just need to handle their smartphone or smartwatch, no need for cash. Banks are losing control over their customer. Furthermore, in a recent study made by revolution banking in Spain, people believe that in 2 or 5 years the most common method of payment in Spain would be the mobile wallet coming from technological companies.
What do banks need to do to face these competitors? In this context it’s time for banks to become banks of the future, and in order to do so they must keep innovating. If they want to stand out and face these international giants, they will have to differentiate themselves and propose more technology to their clients. They’ll first all need to have their direct secured mobile payment app, and give some added value through the app that the user wouldn’t get from Apple or Samsung. By this I’m thinking about things like mobile payment app bringing an added value by helping users managing their personal finance and a loyalty program.
It's clear that our way of consuming is changing. Consumers want everything to be fast, easy and secure, that’s also what they ask for when it comes to their bank. Banks that will be able to adapt to the market and that will keep innovating will be the one that stay ahead of this game.