|Innovative payment startups, 2012 Edition|
A number of payment-related offerings demonstrated at FinovateEurope 2012 in February may represent interesting partnership opportunities for banks, according to a new report from Celent.
Compared to last year’s event, payment solutions presented at FinovateEurope 2012 are:
• More incremental and pragmatic rather than disruptive.
• More targeted at financial institutions.
• More card-oriented.
“Launching a truly new and innovative payment solution is very difficult, and working with banks rather than against them often makes sense,” says Zilvina Bareisis, senior analyst with Celent’s Banking group and author of the report. “Also, the innovators’ ongoing focus on cards confirms our view that cards will continue to be an important payment instrument, and that even plastic will survive as a form factor for many years to come.”
Celent analysts regularly attend Finovate events, which showcase the latest financial services technology startups as well as new offerings from established firms.
Key findings of the report include:
• Thirty-five companies in total presented at FinovateEurope 2012, demonstrating a wide range of solutions. Payments was again central to the event, with nine companies demonstrating payment-related solutions.
• None of the players were attempting to launch a new payment scheme and most of the propositions this year are less disruptive to banks. They are designed with financial institutions in mind. Only one solution reviewed represents a likely threat to the banks’ payments business (CurrencyFair), while another is an opportunity in the short term, but might be a threat in the long term (PayPal).
• Five out of nine of this year’s payment offerings are in some shape or form related to cards.
[This article was posted on April 23, 2012, on the website of ABA Banking Journal, www.ababj.com.]
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