Fees. And it makes some sense on paper but given we’ve recently seen Barclays drop their own Android payment solution for Google Pay I can’t imagine much demand.
The fees are quite tiny and relate to the amount the bank receives from interchange commission anyway, so not really a cost centre - unlike Venmo/Cashapp/Zelle.
Does it? If a few of the big banks partnered to provide an Apple/Google Pay alternative and just cut support, suddenly the competition is gone from the equation
Most of Britain aren’t going to change from using Barclays to Nationwide if HSBC/Lloyds are also using the 5/10 largest banks collaboration wallet project.
They’d also get more control over the payments infrastructure, could build in a sort of interbank payments system to cut out FPS in the process to save more in fees and could also expand scope by allowing cashpoint withdrawals via the app or even P2P
I’m actually not sure the interchange model worked in Europe. I have a feeling there’s a flat signup fee, paired with some form of ongoing fees based on user or issued card/card update fees.
Our interchange caps are just too small to support the kind of money that it needs to be to start adding a 3rd party to the split
AIUI it’s 10% of interchange revenue they take. Dunno about any setup fees, but I don’t doubt there are some. Unlike the issuer mobile payment wallets have zero cost associated with account setup. It might not be much but it’s pretty much all profit.
Remember Visa and Mastercard make huge amounts with similar margins to play with.