What is the GAFA Positioning on the Payment Market
When Digital Technologies meet Payment Services
The GAFA also known as Google, Apple, Facebook and Amazon are digital companies which have developed great innovation since the advent of the internet.
In fact, each and every time they promote new innovations or technologies, they are most of the time adopted on the market and become the norm.
While expanding their businesses on the digital market, they also started to conquer new ones.
Like the saying : do not put all your eggs in one basket!
It also includes the payment market where their strategy appears more defined than ever.
To the Conquest of Payment !
It has been several years since the GAFA started to enter the payment market.
In 2014, Apple launched Apple Pay, a new technology that allows customers to pay with their smartphone through NFC technology.
It has been quickly followed by Google Pay in 2015 and the Facebook Marketplace launched in 2016 where customers can sell and buy multiple types of goods and services.
And they continue to develop technologies and services to improve their customers’ lives.
In fact, Amazon became the first pure player to invade the brick-and-mortar commerce with Amazon Go in 2018.
The concept, a new payment experience in which the most important pain point is relieved, there are neither materialized payment nor queue anymore.
By adding communication and digital technologies, the GAFA made a turning point in the payment history.
A Strategy Precising itself
The GAFA are asserting their strategy of getting bigger in the payment market because they have understood the power of payment in our digital world.
Several objectives materialized themselves on the horizon.
Firstly we got the G as Google, known to always innovate throughout its production chain, that is going further in the payment area.
The tech giant launched in august 2020 co-branded account partnership with 6 new institutions in the US: Bank Mobile, BBVA USA, BMO Harris, Coastal Community Bank, First independence Bank and SEFCU alongside Citi and Stanford Federal credit Union.
While Google will provide the user experiences, the front and the financial insights to the customers, Banks will manage the account infrastructure which is their core activity.
Google holds a strong position on the digital aspect and its empire is still growing through its payment strategy.
Then comes the A.
In august 2020, Apple launched its card management system, paired with its credit card: the Apple Card. It is available is most stores in US, UK and Australia.
Learn more about it right below:
Apple also bought a canadanian start-up named Mobeewave which is specialised in cashing technologies from mobile.
Apple clearly underlines its will to diversify its activity though mixing payment into its proper technologies. It’s a form of optimization within a perpetual consumption world.
Furthermore the F like Facebook. Owner of WhatsApp, Facebook decided to transform the app into a shopping channel like the chinese one Wechat.
The objective, diversify its activity and offer new experiences to its customers.
Facebook also invested in cryptocurrency strategy by launching Libra, its proper cryptocurrency which enables customers to buy online and exchange money through the other group platforms.
Last But not least, A like Amazon. After Just Walk Out, the No cashing store experience, Amazon releases a new project on the payment market.
Amazon One or how to buy products with a single scan of your palm. Amazon achieves a new step in the payment innovation area.
Multiple patents have been made to give life to this project. In addition to addressing the pandemic issue about “avoiding contact”, Amazon One also offers the opportunity to go forward on the way to biometrics uses.
Learn more about Amazon One right below:
All these news technologies address new payment challenges which customers are striving for.
Finally payment is a big deal in nowaday environment and big companies such as the GAFA are conscious of that.
At Market Pay our teams are looking for news technologies and new payment experience everyday to tackle those needs. Our customer performances and profitability is our priority, therefore innovation is always at stake.
