As Money20/20 drew to a close, it became apparent that the overriding theme was collaboration and that established players, tech companies, FinTech startups and regulators need to work together. This was the key difference compared to prior years, when the feeling was that the disruptors and the disrupted were sitting awkwardly in the same room with different objectives. Consider the following facts from Money20/20:
- Zelle was launched with 19 backers: Ally Bank, Bank of America, Bank of the West, BB&T, BECU, Capital One, Citi, Fifth Third Bank, FirstBank, First Tech Federal Credit Union, Frost Bank, JP Morgan Chase, Morgan Stanley, PNC, USAA, U.S. Bank and Wells Fargo.
- PayPal dismissed Zelle’s threat to Venmo on the basis that more competition will be good for P2P and the payments ecosystem in general, given that the common enemy is cash.
- Many companies announced innovative new partnerships at Money20/20, such as Visa and Chain, Google with Visa and MasterCard, PayPal with Facebook, and Alipay with First Data and VeriFone.
- More FinTech startups are working with the established banks, including Lending Club and Citi, OnDeck and Chase, or Avant and Regions Bank.
- Companies like MasterCard and Synchrony Financial are looking to nurture FinTech startups by providing advice and guidance and working with them in their innovation labs.
- The “democratization of access” was a key theme in terms of payment methods and devices, enabling consumers to use the payment method of their choice, the device of their choice or the digital wallet of their choice, requiring companies to work together.
- As part of the CFPB’s Project Catalyst initiative, American Express has agreed to share insights with the Bureau from its trial program focused on encouraging saving among certain prepaid card users.
These are all examples of new collaboration across an expanding payments ecosystem. Both the established and the new players in the industry are coming to an understanding that they need to work together to create opportunities. By working together, they have a better chance of achieving the frictionless commerce experience that consumers are expecting in the future.
Andrew Davidson is SVP/Chief Insights Officer for Mintel Comperemedia. He is an expert in data-driven cross channel marketing intelligence, consumer behavior and global trends. As a thought leader and expert speaker, Andrew has consistently predicted the evolution of payments marketing for the past 23 years. He speaks at high profile industry events and has presented at conferences in the US, Canada, Australia, New Zealand, Hong Kong and Taiwan. Andrew is passionate about the global role of payments as the first step on the path to financial inclusion.
