NEWSBYTE Professional services giant Accenture has published figures saying that established payments providers could lose up to 15 percent of payments revenue – $88 billion – over the next three years to new, disruptive players in the financial technology space.
The company’s 2019 Global Payments Survey says that 60 percent of its participants believe they will lose that level of revenues in just a short period. Thirty-eight percent of interviewees believe that the threat comes from big technology companies, such as Google, Amazon, and Facebook – whose Libra stablecoin is designed to be a global, cross-border payment platform.
As previously reported on Transform Finance, a number of payments companies have pulled out of the Libra coalition in recent weeks, including PayPal, Visa, and MasterCard.
Thirty-two percent of Accenture survey respondents believe that FinTech startups pose a threat, with $11 billion from over 800 deals between 2016 and 2018, according to figures published by Forbes today.
Financial technology solutions provider to the banking sector, Backbase, has responded to the report. CEO Jouk Pleiter told Transform Finance, “As the likes of Revolut and Monzo thrive in the UK, emerging technology firms pose a continuous threat to North American banks.
“Digitising your bank is no longer something to ponder – it is something to implement at the very minimum in order for your institution to survive. Consumer behaviours are changing and the next three years mark a crucial period for banks to adapt accordingly.
“Business models in the US and Canada must be revamped to become digital-first and centred around improving customer experience.
“In a battle between banks and emerging technology firms, the consumer remains the most valuable player. Their behaviours demand digital, so it is to them that banks across the world must cater their models to by accelerating their current transformation process.”