A report by Accenture has predicted a tipping point in the near future when U.S. banks will be forced to devise new payment methods to compete with the popularity of digital wallets.
Many banks capitalise on new revenue streams and growth by integrating their mobile and digital cards with popular e-wallets – the most notable being ApplePay, GooglePay and PayPal.
However traditional banks are now looking to reopen a healthy margin between banking methods and non-bank payment streams.
A group of U.S. banks are supporting a new wallet, which links with debit and credit cards and will create space in the marketplace for U.S. banks to thrive.
The evidence points to a rapidly changing consumer payment landscape being attributed to consumer behaviours and technology advances that evoke market competition. Over half of consumers have tried or regularly use digital wallets over credit cards, hence the impact on card-issuing banks that fall behind payments innovation could be substantial, equating to $89 billion in revenue over the next three years.
And this is only the disruption with real payment options in the wallet, account-to-account (A2A) and buy now, pay later (BNPL).
Crypto and metaverse payments offer an endless realm of opportunity for speedy and flexible transactions on the next generation of the internet, which is secured by blockchain.
Find out more about strategies that banks can apply to ensure consumers can make payments from any location real-time.