Is Apple Tap to Cash an Industry Game Changer?
Hey Payments Fanatic!
Today I like to start with a question for you.
As you know, Apple announced “Tap to Cash” earlier this week.
I read and hear mixed reactions, so I'd like to hear what you think:
Many thanks in advance and I'll share the results of the poll with you soon!
Cheers,
PAYMENTS NEWS
🇪🇺 MoonPay and PayPal partnership expands to the UK and EU, following a successful launch in the United States last month. MoonPay users in 24 EU member states and the UK can now buy cryptocurrency using their PayPal account.
🇦🇪 The Central Bank of the UAE (CBUAE) is preparing to launch a domestic card scheme – dubbed Jaywan – through its subsidiary, Al Etihad Payments, later this month. Jaywan intends to increase the availability of payment options with a specific focus on e-commerce, digital transactions and financial inclusion.
🇨🇦 Canadian FinTech firm Nuvei and ViaPlus launch payment options for mobility services. Through this collaboration, the entities aim to introduce over 700 new payment methods to enhance convenience and flexibility for users in multiple countries. Read more
🇬🇧 UK restricts FinTech AstroPay, owned by Uruguay’s first-ever billionaires. UK regulators imposed a series of restrictions on the financial-technology company as part of a widening crackdown on payments firms that process hundreds of millions of dollars worth of transactions every day.
🇬🇧 Checkout.com announces the promotion of Jenny Hadlow to Chief Operating Officer. Since joining the firm in 2021, Jenny has led the Global Revenue Operations team, driving commercial excellence and scaling the company’s operations globally. She will now also oversee the Risk Operations and Merchant Care teams.
🇺🇸 PingPong, the global cross-border payments platform and business network, announced the launch of its embedded lending solution. The innovation enables US enterprises of all sizes to facilitate global, cross-border growth. Read more
🇺🇸 Cash use persists in US beyond pandemic. Consumers remained committed to cash use last year, even as the share of card payments rose and online payments increased, according to an annual Federal Reserve study.
🇷🇺 Russia to start using CBDC for cross border payments in 2025. Russia intends to perform its first cross border payments using the digital ruble in the second half of 2025. Central bank digital currency (CBDC) transactions with China or Belarus are on the cards.
GOLDEN NUGGET
Artificial Intelligence (AI) is revolutionizing Banking and Payments, driving revenue, enhancing fraud detection, slashing costs & more👇
What is Artificial Intelligence (AI):
Artificial Intelligence (AI) is a field within computer science that focuses on creating systems capable of performing tasks that typically require human intelligence. This includes subfields:
🔸Machine Learning (ML)
🔸Deep Learning (DL)
🔸Generative AI (GenAI)
There are a multitude of different application fields for AI leveraging the subfields above:
🔸Natural Language Processing (NLP)
🔸Robotics
🔸Computer vision
AI can be categorized into NarrowAI, which targets specific tasks, and GeneralAI, which aims for broader, human-like cognitive abilities. Currently, Narrow AI is more prevalent and applied in various industries, including banking and payments.
How AI is Impacting Payments & Banking 👇
AI is revolutionizing the banking and payments industry by enhancing customer engagement, improving operational efficiency, and advancing risk management:
🔸Customer Engagement — AI-driven personalized solutions and customer support enhance customer satisfaction and loyalty.
🔸Operational Efficiency — AI automates routine tasks, reduces errors, and streamlines processes, leading to significant cost savings.
🔸Risk Management — AI provides sophisticated tools for real-time risk detection, compliance, and fraud prevention.
Diving deeper, AI has some very specific and concrete applications in the industry:
👉 Enhancement of customer support efficiency
👉 Predictive capabilities of AI in forecasting consumer finance credit defaults
👉Automation of annual report generation utilizing AI technologies
👉 Improvement of organizational data management speed and reliability with AI integration
Current Opportunities and Potential for Disruption 👇
1️⃣ Revenue Growth and Cost Reduction — AI adoption in banking could lead to a 30% increase in revenue and a 25% decrease in costs
2️⃣ Practical Use Cases:
🔸Enhancing Customer Support — AI-powered virtual assistants manage 70-80% of incoming calls.
🔸Loan Default Prediction — Machine learning models predict loan defaults by analyzing diverse data sources, reducing credit risk.
🔸Streamlining Report Generation — Gen AI automates the creation of financial reports.
🔸Advanced Data Management — AI enhances data extraction and processing, improving the reliability and usability of data.
3️⃣ Organizational Transformation — Systematic approach is crucial to the implementation of an AI strategy.
By embracing AI, Banks and FinTech companies can not only streamline their operations and reduce costs but also create more personalized and efficient services for their customers. This is a competitive advantage 🚀
Source: Arkwright Consulting
And I highly recommend following my partner at Connecting the dots in payments... Arthur Bedel 💳 ♻️ for more great updates like this one👌
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