Tech firms should partner with banks

MasterCard’s Cairns alluded to the payment card firm’s support for Apple’s payments platform Apple Pay as an example of a financial services firm joining forces with a tech giant.

“People use (Apple Pay) to go through the London Underground every day and just tap your phone and then it creates a virtuous circle where people are buying coffee and the whole world starts to move contactless,” she told CNBC.

“Everyone’s trying to provide fantastic user experiences by joining up and partnering and really sharing each other’s technology to create the best-end result,” she added. “And actually it’s about creating something that’s seamless and easy that people can trust.”

A host of new banking challengers that operate with just a mobile app and a payment card have gained momentum in Europe and Latin America. In Europe, the likes of Revolut, N26 and Monzo have snapped up millions of customers, while Brazil’s Nubank has 5 million credit card customers using its platform.

Trust is something that banks often say gives them an advantage over their fintech competitors. According to many financial giants, consumers are more likely to turn to a bank with more than a century of history behind it than a younger tech player.


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