Technology is a double-edged sword for banks. Before the internet, traditional industries made consumption time-consuming, expensive, and sometimes inaccessible. Startups come as a relief to the traditional banking sector by improving the quality of financial services and cutting down costs. FinTech companies using a niche strategy are taking over various areas of the financial sector from traditional banking to payments to money transfer and investments. They came as the world’s innovations and a breath of fresh air to consumers, but giant banks feel they are under attack. Startup Mobile Payment Apps are slowly threatening to kill giant banks and their systems due to their lack of innovation and have forced these banks to accept lower profit margins.
Although banks are regulated by heavy regulations and complex laws, the rise of the FinTech revolution is taking away a significant volume of business from traditional banks. Some of the factors that have favored this revolution include the mix of ideas and opportunities, good timing, flexibility and talent, and availability of new customers. Apart from the current popularizing trend where banks are investing in call center outsourcing, traditional banks need to invest heavily in technology and innovation, to meet their customers’ ever-rising expectations of service quality and low costs.
Here are 10 Startup Mobile Payment Apps That Threaten Giant Banks
It is a startup that brings together a payment technology, banking network, and an understanding of international payment processes. Currency Cloud provides a simple, and low-cost alternative for international payments. It lets customers move around the world securely and quickly, by providing a transparent payment engine that fully automates the global payment cycle. You can choose to access Currency Cloud’s payment engine directly if you want to make a few payments regularly or via a simple API for customized solutions.
It is a free startup payment app that allows consumers to make payments at thousands of businesses nationwide. LevelUp lets merchants accept mobile payments from customers without a credit card. Users enter their card number information and easily make payments to participating outlets. LevelUp startup payment app is available on both Android and iOS and currently boasts approximately 4000 participating merchants in the US. The platform charges a 2% flat fee on credit card transactions, with no authorization fees, monthly or service charges.
It is an app that allows users to make payments by text using its unique system. Venmo startup payment app puts a maximum limit of $2000 per week. Recipients get a text message notification about the payment that has been sent to them and are required to register to retrieve the money.
Apple in September 2014 announced that it aims at revolutionizing the world of credit card payments through Apple Pay. Apple Pay is a startup payment app and digital wallet that lets you make payments through Apple’s compatible devices. The platform allows customers to make payments by wavering their iPhones over a terminal, digitizing, and replacing credit or debit stripe card transactions.
Using NFC, Google Wallet is a mobile payment apps startup developed by Google. It provides the flexibility to receive and send money instantly. It also allows users to store credit cards, debit cards, loyalty, and gift cards on their Android and iPhones. GoogleWallet enables businesses to accept payments both in-store and online. It is an excellent option for users wanting to expand their online customer base. Users with Android phones running the app can use it to make payments. Merchants pay the standard card-present fees for transactions on this platform with no extra costs from Google.
It is one of the largest mobile payment apps startups that offer a free card reader. VeriFone SAIL is available for iOS 4.3+ devices, Android smartphones, and tablets. The platform provides the option of subscribing to a fixed monthly fee or going in for a percentage of the total transaction amount. Merchants can scan QR codes, send emails to their customers, and sync their inventories across a range of devices
Card-free transactions are made easy and convenient with PayPal! PayPal Here allows business owners much more flexibility and has become very popular. Customers can make payments directly from their mobile PayPal accounts. Users are required to link their PayPal accounts with their phones and set up a pin. PayPal Here has no setup or monthly fees and the cost per transaction is 2.7% of the final sale.
Dwolla is an innovator in the field of mobile payment apps startup providing one of the best and easiest ways to make payments. Unlike most apps, the Dwolla app does not require additional hardware. Users log into an app on their smartphones and select the approved vendor they would like to pay. You can send money directly to a vendor’s merchant account, and the recipient can use the Dwolla online kiosk to monitor the payments in real-time from a smartphone, laptop, or tablet.
It is certainly one of the most straightforward mobile payment apps solutions. PayAnywhere has no setup costs, no monthly fees, or monthly minimum sales requirements. The app and accompanying reader are available to all users for free. The platform offers one flat-rate pricing plan of 2.69% per swipe.
Founded in 2011 by Lucas Duplan, Clinkle is a mobile payment apps startup that has invented a practical way to replace smart cards with smartphones. Clinkle is available on Android and iTunes stores. It offers a payment platform that modernizes the ways consumers transact by creating a platform that changes the way users make payments. The company is also planning to introduce a mobile wallet for daily transactions.
Some traditional banks are partnering and investing in financial technology startups partly, to keep up with potentially disruptive changes that could face the industry in the future. Startups payment apps have developed the product quality assurance and user experience specially designed to suit the needs of consumers today. Most banks are focused on providing the latest digital banking applications to customers and investing in whizzy new technology but are currently facing growing competition from these rivals. Unlike traditional banks, startups offer features that match the needs of consumers and people are willing to try new apps and their innovations. If startups take over the banking industry, it will simply be because traditional banks and their systems will have failed to make innovations to meet the needs of the consumers.