finnCap Group: Fintech Will be the Victor in the Coming Payment Wars

finnCap Group: Fintech Will be the Victor in the Coming Payment Wars

Amazon’s decision to force UK customers who pay with Visa to switch to a different payment card is the sign of a wider conflict that will see fintech companies, many of them founded here in the UK, taking a bigger position in a payment landscape that until recently has remained static for decades. Ben Goldring , Director & Head of Financial Services at finnCap Group , shares his thoughts on h ow fintech will be the victor in the coming payment wars. Why the card networks are under pressure Post-Brexit, Visa (and other card networks) are raising their interchange fees for UK cards buying goods in Europe from 0.3% to 1.5%. While this doesn’t impact UK merchants, Amazon’s European headquarters are in Luxembourg so the rate increase has a material impact – probably some £250m in annual fee increases. While the economics of the increase are real, Amazon’s decision is indicative of a broader trend – the acceleration of a power shift that will increasingly see retailers, not incumbent payment providers, take the driving seat. Anyone who has bought their Christmas presents online will have noticed there is a growing range of payment options. Looking forward we can expect to