by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
Connexus : Issue 41
Gloving up for the payments prize fight The rules of engagement are changing in the payments market, and the world’s most powerful technology companies are coming out swinging. By CAMeron Cooper In the blue corner are the banks and credit card supplier s, deter mined to hold on to a market stronghold. In the red cor ner are global technology giants such as Google, PayPal and Apple, who are tr ying to show the way and create new revenue streams. The prize is potential market domination of the evolving payments sector in a new era of technology breakthroughs and virtual currencies that is making the switch to internet banking look like small fry by comparison. Banking commentator Brett King, a bestselling author and founder of mobile banking operation Movenbank, says rapid changes in methods of payment represent an oppor tunity and challenge for financial institutions, credit card companies and regulators. “It’s a revolutionary shift,” says King. “ We are seeing a change in the way people think of money and banking, and the way they interact in the retail space.” Some major banks are responding with their own mobile banking applications, such as the Commonwea lth with Kaching and ANZ with goMoney. But King says most financial institutions don’t see this trend as a fundamental change in the way banking will work. “And I think that’s a mistake,” he adds. The take-up of mobile banking is dwarfing that of internet banking, which took hold just over a decade ago. King predicts that, by about 2016, most Australians will do their day-to-day banking on a mobile phone, with the internet, tablets, ATMs, call centres and, lastly, branches trailing behind. “ That’s a massive shift,” he says. mobile shakeup Change in the payments space is fast and furious. CBA’s Kaching app has led the way in Australia, allowing iPhone users to send funds peer-to-peer (P2P) v ia SMS, ema il and Facebook messages, or to share money using a chip in the phone. ANZ’s popula r goMoney app and St George’s recently launched Pay to Mobile service are following suit. However, the biggest battle is loom ing internationally, with the likes of Google Wallet, POLi, Facebook credits, PayPal, Square and possibly Apple competing for early supremacy. Inter national P2P lending start-ups such as Prosper, Zopa and the Lending Club are also shaking up the sector. Courtesy of the strength of its 12 Connexus NEWS