ADN’co Payments Insight – April 2017

Players’ strategy – Even More Moves for Amazon in the Field of Payments

• UNITED STATES - UNITED KINGDOM – Amazon and Visa are allowing Amazon Business customer companies to benefit from data analytics services regarding cardholders’ expenses made using Visa-affiliated commercial cards.
• FRANCE – Amazon launches their ID-based e-payment service Amazon Pay in France, Italy and Spain to also address third-party websites’ checkout processes.
• INTERNATIONAL – Amazon aims for merchants and end-customers with Subscribe with Amazon, designed to centralise all subscriptions, as well as their management.

In line with several prior (media covered) moves, Amazon still aims for diversification and reaches out for companies (data analytics, expenses management, transactional data monetisation), and individual customers (innovative checkout services in-store and online). Amazon displays high ambitions in terms of customer acquisition and retention (offers for Prime members, services for underbanked customers, etc.). This diversification opens further possibilities for this player and leads them to get involved in new business sectors. This e-merchant considers all payment contexts, as would a facilitator or business provider.

Players’ strategy – More Competitive Pressure on Retail Banking

• FRANCE – Orange officially presents Orange Bank. This service will be launched nationwide on 6 July.

Orange Bank had been expected for quite a while, and is of course reminiscent of all several retail banking services that have since been launched by neo-banks (N26), and longstanding retail players (Carrefour and, soon, E.Leclerc). These moves are intended to cover basic banking services, with quite aggressive pricing scales. Orange will be proposing this service free of charge (however use conditions will apply). They stand out for now through including the IBM AI Watson for customer management.

Players’ strategy – FinTech Players Joining in The Ranks?

• FRANCE – BNP Paribas buys out Compte-Nickel: quite an unexpected announcement for a player which had been praising a “no-bank” approach from the start. And, more proof that the bank/FinTech relationship has grown up.
• FRANCE – Banque Edel (E.Leclerc) officialises their buyout of Morning and will be carrying on their B2B and B2C developments. Another chance for the Morning card to come to life, and a new entrant in the market of payment accounts.

Many players’ moves have been highlighted these past weeks, and some “disruptive” FinTech companies have started to rally mainstream groups. Just like money pot services did appeal to large-scale banking institutions, new payment account providers have become potential targets. Banks are now making sure they encompass their skills, through buying them out as other giants are getting ready to enter this market: Carrefour, E.Leclerc and Orange, for instance.