Note from the Publisher: Earlier this week, we published an interesting piece entitled “Record Fintech VC Ain’t No Big Thang” (sorry for the grammar, but we thought it was funny), which detailed that of over 5,000 fintech startups worldwide, as few as 30 were truly scalable globally. Likewise, we often discuss in our houshold how much VC is being thrown at fintech right now, fully knowing that probably 10% will ultimately make it through. The numbers astonish us daily.
TechCrunch has published a piece discussing that same phenomenae, but specific to mobile payments, and they assert that every entity offering this service has a different motivation for being in the game, but it’s not all about profitability.
“What the heck is up with all the mobile payment solutions hitting the market? Hint — it has almost nothing to do with money.
Every week it seems like another retailer, bank, or technology company launches a mobile payments solution. Apple Pay, Android Pay, CVS Pay, Walmart Pay…Pre Pay…Over Pay…Tai Pay…it’s all a bit much.
Rather than money or hardware, the mobile payments battle is a fight for ownership of the customer. Retailers care a lot about the top 20 percent of their shoppers. For companies like Walmart and CVS, recurring revenue is worth the extra cost of developing and promoting an app even if Apple Pay and Android Pay end up being the most popular platforms.”