Apple's contactless innovation puts pressure on banks to up their game
Apple’s recent acquisition of Mobeewave is the newest testament to an upswing in contactless payment options and COVID-19 is accelerating the trend even further — proving banks must prepare accordingly.
Mobeewave enables merchants to accept payments from shoppers directly from their smartphones rather than purchasing a separate point-of-sale (POS) device — completely sidestepping traditional payment terminals. Increased access to this technology directly benefits small- and medium-sized businesses and growing enterprises struggling from pandemic-related challenges, allowing them to easily accept contactless cards or tap-to-phone payments, while customers can enjoy methods much less susceptible to contamination.
Through Apple’s attempt to modernize payments by forward-looking acquisitions like Mobeewave, we can also expect banks to adopt innovative strategies as new players enter the market. The buy-in from Apple proves contactless payments are on the rise, but should also act as a warning sign for banks to promptly restrategize if they want to uphold their position in the industry.
Ultimately, it’s up to customer preference whether or not Apple’s modernized payment methods will reign supreme. In the meantime, while contactless payments continue to surge, banks should answer the call to keep a competitive edge. To prepare the financial industry for the next step toward modernization, banks must be ready to digitally transform and drive an agile foundation rooted in real-time data and marketing efforts.
Implementing tools like customer data platforms (CDPs) accelerates digital transformations and can help banks create more timely and relevant experiences for their customers. Like many industries in the midst of COVID-19’s disruption, banks are working to navigate marketing campaigns and day-to-day customer communications away from brick-and-mortar locations. Proper data collection will allow banks to implement new, innovative strategies and meet the consumer where they are in the member journey — especially as they seek new information about contactless options.