Every so often, the advance of technology results in a batch of new capabilities reaching the public almost at the same time. This is what's happening with payment technology right now. Soon, there will be a shakeup of a magnitude that hasn't been seen since credit cards were invented. What's going on?
These systems are set up on private networks and allow customers to keep money available in electronic form - without the need for a bank or credit card. They can be used at any merchant connected to the system. Often, this is just one chain of stores, but there are exceptions.
These systems are often connected to store loyalty programs. This makes it easy for both the store and its customers to keep track of everything.
Cryptocurrencies like Bitcoin are exploding onto the wider scene in a big way. Once the domain of offbeat online stores, these alternative forms of money have now crossed over to physical business. Demand is now soaring.
How do These Advancements Threaten Banks?
Banks will see several threats from alternative payment methods. One of the biggest ones is that they are losing control of the payment process and the financial data that goes with it. This means they will face competition in the big data arena as well as in their traditional domains.
Another threat is the simple fact that big changes are here. The banking industry, as a whole, is very hidebound. Whenever such industries are forced to deal with big changes, shakeouts occur. This scares banks that aren't ready to adapt.
It's easy for you to be ready for the wave of change that's on its way. Use Netclearance's mBeaconSAM and mBeaconPay to easily set up your own private wallet system and accept cryptocurrencies while also taking standard credit and debit cards. Just give us a call and we'll help you get started.