ADN’co Payments Insight – December 2015

Virtual currencies – More room for the Blockchain in banking players’ strategies

• FRANCE – The Caisse des Dépôts and several French banks are investigating the Blockchain. Their aim would be to rely on technical partners’ skills to better understand and take advantage of this protocol, and mutualise their respective ongoing work.

This announcement, as well as BNP Paribas, Société Générale and Natixis joining the R3 consortium, stresses the industry’s increasing interest in the possibilities offered by the Blockchain. It also reminds ongoing processes on several other markets and an overall intent to use this protocol in traditional banking and financial contexts.

Players strategies – First level partnerships for Chinese market leaders

• CHINA – Powa Technologies and China UnionPay announced a partnership enabling Chinese customers to make instant mobile transactions. A means for the leading card scheme to challenge Apple Pay, Samsung Pay, and their many non-banking local rivals.
• CHINA – Wirecard and Alibaba have joined forces. Chinese tourists would now be able to pay through the Alipay app at European merchant acceptors.

These announcements are new indications as to Chinese giants’ intend to aim for more open strategies, both on a national level and on an international level. In both cases, the notions of choice and value additions prevail. The point would be to propose more payment options while focusing on improving customer processes.

In-store mobile payment – Ever more offers in the US

• UNITED STATES – Walmart is getting ready to test Walmart Pay: their own mobile payment solution. This service is scheduled to launch during S1 2016.

Walmart Pay appears as quite a clash on the eve of CurrentC’s launch. This service has in fact been supported by Walmart, as well as by other MCX founders for quite a while now. Walmart responds to the increasing number of mobile moves by high-profile players, and might want to stay in control of their customers’ data. In any case, Walmart Pay enters an already crowded and fragmented market.

Mobile payment – Another move on a market has hasn’t yet taken-off

• FRANCE – Smile&Pay, new entrant focusing on mobile card acceptance, has just been presented in France. This independent service will have to face banking and telecom rivals as they also aim for small companies.