T2 Money changers T2 Money changers What’s going on? Once upon a time, we went into a bank and waited in a queue. Then, we self-served with online and mobile banking. Now, many societies – in Asia, especially – are going cashless. In China, mobile payments are now so common that paying with cash is practically unheard of, even with street performers and taxi drivers. Meanwhile, millions of people in developing countries remain unbanked. New payment ecosystems are being pioneered by non-traditional financial companies, and our relationship with money is being made more ambiguous by seamless or almost invisible systems such as payment by smartphone, payment by facial recognition and cashier-less retail stores. According to CBS News, only 13 percent of Swedish people could remember using cash for a recent purchase and, in the US, 30 percent no longer use cash in a standard week. Opportunities in global payments are significant, with Accenture estimating that revenue is likely to grow at a compound annual growth rate of 5.5 percent to reach US$2 trillion over the next six years. Accounting for 58 percent of total revenue, customer payments are expected to grow at 5.1 percent by 2025, and the corporate payments that make up the remaining 42 percent are expected to grow at 6.1 percent. Based on this, US$500 billion in incremental revenue is now up for grabs. Trust in legacy banking systems has been challenged, however The new Apple Card aims to reinvent the – among younger people, especially – by scandals and traditional credit card, eliminating fees, simplifying players’ failure to adapt fast enough to evolving customer application and helping people to make expectations. At a time when payments are becoming financially healthier decisions. increasingly decentralized, start-ups are providing all manner of improved customer experiences which raise expectations and, in turn, place greater pressure on traditional banks. Today, as more services make the business of sending money to individuals and companies instant and free, quality of experience is a critical differentiator. 23 24