By Goodness! The U.S. is Falling Way Behind the World Re: Payments
Just reviewing some numbers - and maybe they just impress us, but they should alarm U.S. Banks and the credit card companies! Here are a few that standout:
Mobile payments in China (WeChat Pay & Alipay):
2015: $1 Trillion USD
2017 $17 Trillion USD
2018 $41.51 Trillion USD
All credit card payments for the rest of the world combined in 2017: $25.1 Trillion USD
Mobile Payments in the U.S.:
2015: $8.71 Billion USD
2017 $120 Billion USD
Chinese giants WeChat Pay and AlipPay didn’t start offering mobile payments solutions until 2014. In just four years they managed to process more payments than the entire credit card industry and the US GDP combined.
31.6% of the world has a Facebook account and Facebook is prohibited in China, the world’s largest population (1.386 billion people)
Facebook gained 2.36 billion users in 14 years, whereby it took JP Morgan Chase nearly 150 years and several mergers and acquisitions to amass 80 million customers.
Alipay amassed the largest money market fund in less than 3 years.
Visa averages 1,700 transactions a second (peak volume is 9,000) while Alipay alone in 2015 did 87,000 transactions per second (peak volume is 256,000)
Let that data digest for a minute…
For many this data beckons an obvious question, why the heck is the world’s largest economy (U.S.) sleeping at the wheel? We believe it comes down to one word: Legacy. Legacy behavior, legacy thinking, legacy regulation, legacy rules and legacy networks.
If this data doesn’t excite you, you are probably not a fintech payment geek, but that’s OK, let us know what you think anyway: https://twitter.com/movehoney