Digital threat: The German headquarters of PayPal. Banks face rising competition from tech startups like Silicon Valley payment providers Stripe and Square, as well as technology platform PayPal, and the likes of London-based TransferWise that offer foreign exchange payments to retail and small business customers with lower fees. — Reuters
LONDON: Banks are set to miss out on as much as US$280bil in revenue from their payments operations by 2025, as new start-ups muscle in and more of the business of sending money to individuals and companies becomes instant and free, according to a new report.
The global payments business, which covers anything from card payments to wiring money overseas, is dominated by banks and this year was worth around US$1.5 trillion, professional services firm Accenture said in a report published yesterday.
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