Huge Sibos event shows surging clout of banking and fintech
- And by the looks of hundreds of booths representing the world's biggest banks in the vast exhibition hall – which are more like fully blown bank branches – it's clear some serious business is being done here this week too.
- More than a hundred of the biggest banks in the world, including the Australian big four, are set up in an area that would cover several football fields.
- Wells Fargo has stuck an old horse-drawn carriage adorned with its logo in front of its area; Society General is making the most of its sponsorship of next year's Rugby World Cup. In the ASX booth, screens appear to be running a demo of its blockchain.
- McKinsey's report on Monday says global digital commerce volume will exceed $US3 trillion in 2017 – and that will more than double by 2022, at which time the Asia-Pacific (thanks to China) will comprise 70 per cent of the global payments market.
The Future Of Payments 2018
- Rising smartphone penetration, regulations pushing users away from cash, and globalization demanding faster and new ways to transact are leading to a swell in noncash payments, which Business Insider Intelligence expects to grow to 841 billion transactions by 2023.
- Those that do this effectively, and use these shifts as a means of achieving scale without eroding the user experience, will be in the best position to use ongoing digitization in their payments space to their advantage.
- In The Future Of Payments 2018, Business Insider Intelligence takes a look at some of the biggest problems digitization and crowding are causing for payments firms, outlines the key transformations players can make going forward to resolve them, and explores areas where firms have already begun to use these transformations to their advantage.
Global payment revenue is set to skyrocket
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- Global payments industry revenue is expected to reach $2.4 trillion by 2027, according to a report from Boston Consulting Group and SWIFT, cited by Finextra.
- Payments revenue globally grew at a compound annual growth rate (CAGR) of 6.8% between 2010 and 2017 to reach $1.27 trillion, and the report predicts that trend will continue at a CAGR of 6.6% through 2027.
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American Express beats Q3 expectations on record revenue
- American Express beat Wall Street's expectations for third quarter earnings, saying Thursday it had earnings per share of $1.88 on strong gains in spending by consumers and small businesses.
- The company said it expects full-year revenue to be up 9 percent to 10 percent and it raised its forecast 2018 earnings per share to a range of $7.30 to $7.40 from $6.90 to $7.30.
- Shares of American Express rose 0.5 percent in aftermarket trading.
- Net income in global consumer services rose 15 percent, to $779 million.
- In commercial services, net income rose 20 percent, to $606 million.
- American Express reported the day after notes from the recent Federal Open Market Committee Meeting indicate the Fed is likely to continue raising interest rates.
- Higher rates should benefit companies like Amex by boosting revenue and profit.
ParkWhiz’s Arrive Network automates parking payments with wireless technology
- It today announced the Arrive Network, which lets any driver using a supported app or registered car automatically pay for parking without pulling a ticket.
- The Arrive Network leverages Bluetooth and other wireless devices to automatically detect when a car pulls into a lot or parking space.
- It has also teamed up with high-profile services like Groupon, Concur, Ford, and StubHub to integrate its booking services with their respective platforms and entered promotional partnerships with sports teams, including the New York Islanders, Indianapolis Colts, and Boston Red Sox. ParkWhiz said its distribution partners number around 300 today, and that more than 40 million people use its apps in over 4,000 parking locations and 190 cities.
- It also says that its consumer-facing apps — BestParking and ParkWhiz — drove more than $50 million in revenue to parking operators in 2015.
Essential Advice for Businesses Considering the Blockchain
- The business side of a company should lead any blockchain foray, Sweet said.
- In March, Accenture teamed up with DHL, the German shipping giant, on a blockchain trial designed to track and trace medicine distribution for the pharmaceutical industry, Sweet said, citing one example.
- “Today, given the state of the industry, the technology, and the complexity, for most companies the answer is still going to be monitor and participate as opposed to being a first mover,” she said.
- Moy offered an anecdote about her team’s early experience working with the bank’s treasury services business, which handles trillions of dollars in payments per day.
- Alex Tapscott, another panelist and coauthor of a popular book on the technology called Blockchain Revolution, urged members of the audience not to get too comfortable with the wait-and-see approach, noting that the Internet blindsided—and overturned—many businesses that failed to recognize its potential.