Issue 4 – October 2019
DIGITAL PAYMENTS & CROSS-BORDER PAYMENTS: THE API PLAYERS
We observe in this series of reports that there are many new routes into what was once known as the banking industry, which is now being widely disrupted, and in some cases reinvented as a digital business with no brick-and-mortar outlets for customers. In the case of a business such as fire.com, the arrival of several new classes of financial licences including Payment Initiation Service Provider and Account Information Service Provider allows the business to operate in a relatively new space, as a non-bank with direct access to card schemes and to various clearing schemes.
This module looks at four businesses operating in the digital payments or modular payments space across four different geographies: the EU (Fire.com and Lemonway), Chile (Blinking), Saudi Arabia (Paytabs). We look at two companies operating out of the EU who have had to radically re-shape their offerings in order to deal with Brexit and the regulatory divergence that may emerge once Britain leaves the European Union. We also examine Paytabs of Saudi Arabia as an instance of a processing player trying to operate in a region where big players traditionally dominate. In Chile, the current political situation can be framed as a response, once again, to domination of industry by a handful of small players who owe their success not necessarily to market forces.
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