Innovative Payments Startups: Bank Friends or Foes?

by Zilvinas Bareisis, March 18, 2011
Product Trends/ Reviews
Global, Asia-Pacific, EMEA, Latin America, North America

Abstract

A number of payments startups at FinovateEurope 2011 may represent interesting partnership opportunities for banks.

Celent analysts regularly attend Finovate events, which showcase the latest and most interesting financial services technology startups. In this report, Innovative Payments Startups: Bank Friends or Foes?, Celent provides an overview of Finovate’s first European event and examines six payments companies and their offerings: BOKU, eWise, Ixaris, LiqPAY.com, Rêv Worldwide, and SecureKey.

Payments offerings discussed in this report reflect many of the retail payment trends observed by Celent, including continued innovation of online payments, new schemes, open platforms, P2P payments, and the varied use of mobile devices. They also serve as a reminder that entrants and technology players are at the forefront of payments innovation.

So where does that leave the banks? “Banks have little to fear from this particular group of payment innovators,” says Zilvinas Bareisis, Senior Analyst with Celent’s Banking Group and author of the report. “To the contrary, some of these companies represent excellent partnership opportunities for the most agile banks to bring innovations to the payments market.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

5

Overview of Major Financial Services Innovation Themes

6

Introduction to Payments Offerings

8

 

Overview and Selection Criteria

8

 

Assessment Criteria

9

Assessment of Payments Offerings

11

 

BOKU

11

 

eWise payo

14

 

Ixaris

17

 

LiqPAY.com

19

 

MPOWER Mobile / Rêv Worldwide

23

 

SecureKey

26

Innovating in Payments

29

Conclusion

34

Leveraging Celent’s Expertise

36

 

Analyst Access

36

 

Support for Financial Institutions

36

 

Support for Vendors

36

Related Celent Research

38

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