Amazon Pay: Banking on New Thinking Diagnosis White Paper

Abstract

The digital revolution is transforming the way of doing everything in a seamless invisible mode. Payment being an integral part of the day to day transaction plays an important role and has undoubtedly caught attention of many retail giants like Amazon, FinTechs and Banks which are slowly catching up.

Access to internet, technology and people has paved way for disruption at a faster pace. The regulations and their impact is evident in the growing success of new players like Amazon, Google and several FinTechs who are bringing banking where and when customers prefers in the way they desire:

Open Banking – The Competition and Markets Authority (CMA) mandated the open banking standards to the top UK banks. This is about opening the black box of data owned previously by the banks with the providers through open Application Program Interface (API), to access this data backed by the authorization of the customer to manage their finance by making banking more customer centric.

Payment Service Directive version 2 (PSD2) – Designed by the countries of European Union for the Banking. This is about addressing the impediments to ease of seeing relevant information while making the payment and the desired channels to make the payment.

General Data Protection Regulation (GDPR) - The comprehensive EU data privacy law is a European Union (EU) regulation This is about giving the consumer to control, monitor, check and if required even delete any information pertaining to handle personal identifiable information, thus emphasizing “consumer first” point of view.

These regulations and policies have enriched the financial industry in witnessing the onslaught of disruption owing to the involvement of entities like Amazon, Stride and Paytm that render financial services through technologies infused with an omni-channel presence.

The speed with which the swift disruption is gaining momentum exceptionally because of the growing gap between the merchant and the end customer:

• Growing demand of the merchants to get closer and enable seamless payment services to the customer

• Scale the business grow with a visibility at a global level

• Ingrain technology for quick access in the customers’ routine

Building value-driven innovation with the blurring distance becomes challenging for payment platform providers, merchants, and financial institutes.