Nonbank Payment Institutions: A Threat and an Opportunity for Banks

ID Number: G00161432

30 September 2008

Christophe Uzureau

Across the payment industry, nonbank payment institutions are frequently cited as superb challengers to banks' payment operations. However, banks often misunderstand the threat, as well as the opportunity these payment providers pose.

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Table of Contents

Analysis

1.0

Introduction

2.0

The Focus of This Report

3.0

The Threat of Nonbank Payment Institutions

3.1

The Quantitative Impact

3.2

Beyond Pricing

3.2.1		PayPal
3.2.2		Alipay
3.2.3		Amazon.com

4.0

Beyond E-Commerce to Online Social Networks

5.0

Is There a Typical PayPal Customer?

6.0

A Favorable Regulatory Environment

7.0

Collaborative Payment Schemes

7.1		Reaching Out
7.2		Banks as Independent Payment Advisors

8.0

Recommendations

Recommended Reading

List of Figures

	Figure 1.	PayPal vs. Internet Banking Web Sites, July 2008

	Figure 2.	Age Demographics of PayPal Customers in the U.S. and Europe

	Figure 3.	Age Demographics of PayPal Customers vs. Bank of America and Lloyds TSB Customers

	Figure 4.	Household Income of PayPal Customers vs. Bank of America and Lloyds TSB Customers

Payments
Electronic Payments
Mobile Payments
Banking Business Strategies

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Resource Id: 768012