Facebook is not
just a Data Bank, their “Fin-tech” interest might be Shaping the Future of
Payments soon.
Don’t worry, Facebook won’t be opening up a
bank for its 1.9 billion+ userbase. But it will be getting deeper into the
payments game. The social media giant is aiming to leverage the existing
banking infrastructure, by enabling faster payments through partners, instead
of trying to replace the existing channels, according to Kahina Van Dyke,
global director of commerce and payment partnerships at Facebook.
“Facebook has no interest in becoming a bank,” she said, adding that the
company does not even view payments as a revenue play for the business – merely
as a channel for advertising revenue, as well as to increase time on the site.
The wind of change in the payments world is
gaining in strength as financial technology’s “fintech”, potential to alter
how, where and when payments are made – as well as who it is that facilitates
them – is further explored and leveraged. According to a report by Statistical,
the projected investment by the banking industry on new technology in North
America will be $19.9 billion. The leading area of bank spending on financial
technologies is on mobile payments. FinTech companies around the world are
disrupting traditional banking relationships and processing models and
introducing new payment delivery technologies, it is reinventing financial
services as we know it, and creating new opportunities for startups and
established industry leaders alike. As banks position themselves at the center
of the payments industry of tomorrow, banks must act today to understand, interact
with, and cherry-pick from the full smorgasbord of fintech expansions.
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