Let’s go over a potential evolution of an payment application such as ApplePay.
Today, you can pay with ApplePay in selected stores, however, Apple is not getting enough consumers on their platform and it thus now trying to offer P2P transactions, potentially creating a higher user-base. Most payment application have started out by offering P2P and then moving into P2B payments. However, we known that payment are becoming a commodity, and thus it will not be possible to earn attractive profits on payments alone in the future. Payment applications, will thus have to add features to their applications to stay profitable in the future!
Quick-Loan / Day-loan
Imagine this situation, you are now using your iPhone to do all your purchase. You are in the store, and there is a really good bargin on a the item you have been eager to buy, however, you know that you have insufficient funds, until next month when your new paycheck comes. You then just take your phone as you usesally do and select ‘Quick Loan’, enten amount and due date and with a swipe you have a day-loan and can purchase the item. In my former post, i showed more in detail how this could look.
Person 2 Person lending
Alternatively, you could try to lend the money from your friend or parents. As many mobile payment applications already offer P2P transactions, you are used to do so. However, your friend/parent know, that they likely will not get paid back or at least don’t know when. To ease this, a payment application, could setup a lending function, where interest rates, due date and potential fee are directly written into an agreement. The payment application will then automatically withdraw the agreed payback amount each month.
As WeChat have done, a mobile payment application could easily add a savings account to their application. The payment application could do so in cooperation with a bank and then be part of the deposit guarantee (indskydergaranti). This could easily be a success, by simply offering a higher interest rate than what the established banks are offering. Remember, WeChat was able to get more than USD 16,000,000,000 in deposit within a year. Combining the savings function with gamification, consumers could potentially enjoy saving up their hard earned money. The following image is from simple.com, showing a potential user-interface!
Several other financial services:
Consequently, a future in which our mobile payment applications such as ApplePay, MobilePay or Facebook Pay looks more like this, is a potential disruptive up-market development for payment applications.
What other financial features could be added to an existing payment platform?
Why stop with Financial services?
Lastly, why stop with a development of only financial services? Payment applications could easily become the go-to application for any time money should be spend. WeChat have shown that added a taxi-ordering service to their platform can be a huge success. More than 21 million taxi rides was booked in the first week. In China, developers are now first creating a WeChat application and then turn their attention to independent iOS and Android applications. To really show the potential of payment application and to see what could happen, this post will end with the following a quote.