Your Friday fix for global fintech and payments news
It’s been a busy week for fintech and payments news! Amazon has announced its latest biometric technology ‘Amazon One’ which will allow customers in Amazon Go stores in Seattle, US to make payments via palm recognition. The tech giant has also released a co-branded credit card alongside American Express aimed at bringing rewards and benefits to SMEs in the UK. However, our main stories this week include the predicted time spent on m-commerce over the holiday season, how Europe is leading the way for instant payments, and the UK open banking market seeing a drastic increase in usage.
Our weekly round-up brings you a dose of some of the biggest news announcements from the past seven days so you can keep an eye on all that’s shaping our world this week.
- Consumers to spend 1 billion hours on m-commerce over the holiday season
- Europe leads the instant payments evolution – $18 trillion predicted by 2025
- Open banking product usage surges in the UK
One billion hours is expected to be spent in the US on Android devices alone during Q4 2020, according to App Annie. The huge predicted hike in mobile shopping may be down to both the promotions of Black Friday and Cyber Monday, and the delay of Amazon’s Prime Day which is now taking place during October.
The holiday season is expected to see a 50% increase in the time spent shopping via mobile channels in comparison to the same time last year, driven in part by the overwhelming move to mobile that the globe has seen during the pandemic.
The increase seen in e-commerce during the past 12 months was estimated to take 4-6 years to achieve and m-commerce has played a pivotal role.
Western Europe is leading the way in instant payments. Categorised as a payment transaction that is completed within ten seconds, Western Europe is predicted to hold 38% of instant payment volume by 2025. This shows a staggering estimated growth of 500%, compared to 2020.
The mammoth rise in volume is suggested to be down to the success of the domestic instant payment schemes enabling cross-border vendors to connect different schemes into cross-border networks.
The US is lagging behind with an expected 8% of total transaction volume. Nick Maynard, author of the research said: “With the proposed FedNow service from the US Federal Reserve not coming into service until 2023/24, the US is rapidly falling behind in instant payments. Payments vendors must concentrate on creating innovative digital payments products to bridge this gap or be faced with an outdated system.”
The latest figures from The Open Banking Implementation Entity (OBIE) show that open banking in the UK is rising steadily at a rate of 160,000 new users each month. The increase is a consequence of consumers wanting to take more control of their data and better manage their finances during the pandemic.
Other statistics from the research include 45% of 25-34 year olds using money management apps during the pandemic and one in five adults using online banking apps during lockdown, with 54% of adults now using them frequently.
Imran Gulamhuseinwala of the OBIE said: “Open Banking used to be the best kept secret in financial services. With 2 million active monthly users and growing strongly that is clearly no longer the case. We can now see that people want to exercise their rights over their data and will do so, as long as you make it simple and secure. Open banking enabled products are rebalancing the market in favour of consumers and small businesses. Users are now able to engage more with their finances and getting access to better products.”