Banks and Fintechs Argue Over Payments Systems

Banks and fintech firms are in competition over payments systems and each thinks real-time payments should be run differently; Bank of America, Citigroup, JPMorgan Chase and Wells Fargo saw revenues grow an average of 2.75 percent in 2018, with JPMorgan Chase leading the way at 8 percent; Visa, Mastercard, American Express and PayPal saw revenues grow an average of 14.5 percent in 2018, with Mastercard leading the way at 19 percent; the difference in revenues points to the success of payments and the growing nature of the market; the battle over if the Fed should run real-time payments or if The Clearing House, which is owned by 26 banks, should run it has just started; banks still hold significant sway but fintech firms are beginning to close that gap. Source.

  • Todd Anderson

    Todd is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists. He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences. He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.