The payments landscape is changing
It is astounding to see how a global pandemic has had the power to transform the payments industry, making decades worth of change in a few months. Physical-distancing measures coupled with changing consumer behaviours amid the health-crisis, caused revenues from the payments industry to experience a sharp decline. However, some sectors rebounded, as payments continued in a new form, with a shift in consumers using point of sale (POS) to digital commerce accounts.
An expected 2.7 trillion transactions turning into cards and digital payments from cash, within the next decade.
Accenture 2020
The retail industry was one to experience the least blow. To put this in perspective, in the US, the growth of online retail was 6 times the annual growth rate in 2019. In Europe, we also saw new user demographics availing online payments, particularly older shoppers. This sudden shift, as predicted by Accenture, will turn into the ‘new normal’ with an expected 2.7 trillion transactions turning into cards and digital payments from cash, within the next decade.
As the global appetite for electronic ‘peer-to-peer’ and ‘consumer-to-business’ grows, the changing tides in payments opens up opportunities for big tech firms, fintech companies, challenger banks and other entrants. These entities aim to disrupt the market with an offering that provides exceptional user experience at better prices.
Uber : On a path to disrupt payments
With opportunities of better payment services and products propping up, Uber, the master of disruption, is not one to look away. The high-growth tech company has always created ripples in the industry it enters – be it delivery, mobility, and now even financial services. Uber’s prominence in the sharing economy has fabricated changes in the industry, referred to as “uberisation”. The tech giant’s latest move in the financial sector has now gotten banks talking about the “uberisation” of banking, a phenomena that witnesses the disappearance of physical payments in lieu of apps and APIs driven by automation.
The financial sector has now gotten banks talking about the “uberisation” of banking, a phenomena that witnesses the disappearance of physical payments in lieu of apps and APIs driven by automation.
But what exactly is Uber’s mission to enter the payments sector? Uber’s former Head of Payments, Peter Hazlehurst, said that almost half of Uber’s workforce are gig workers who drive for Uber. For these workers, a weekly or bi-weekly pay system was not ideal, and ultimately led to higher costs in the form of overdraft fees and payday loans. In an attempt to address this disjointed payment system, Uber set on a mission to smoothen these complexities by launching Uber Money.
Uber Money brings to drivers an array of financial services. This includes real-time earnings after every ride and a debit product with unlimited overdraft facilities. Uber Money aims to be the hub of all financial product offerings developed by Uber. While for its valued drivers it aims to create a way to get a better grip on their finances, it also aims to give its consumers an experience that is more rewarding. This will be in the form of cash backs in the form of Uber Cash that can be used across services like rides, Uber Eats and JUMP bikes and scooters.
In conjunction with the plan set out, ‘Uber Pay’ lets partners seamlessly integrate with their platform to help augment the success of their venture. This focuses on enabling new payment methods on Uber with the help of their API. While this would benefit third parties with an increased volume of transactions, it would also allow consumers to be rewarded by generating Uber Cash from membership points.
Advanced technologies are here to transform payments, but are financial professionals ready?
The whirwhiled of modern technologies in payments that are here to transform the way we transact for the better, may leave organisations distraught if they lack the capabilities to leverage them. The financial services and fintech industry is in dire need of new skills, as new roles emerge, and this stands true for the payments sector as well.
Organisations are scrambling to stay ahead of the curve as they compete for the best leaders and key professionals. This new breed of professionals must be equipped with technological capabilities, streamlined governance along with leadership capabilities that cultivate a customer-oriented organisational structure.
Today talent is one of the top three concerns of payments leaders
Deloitte 2020
Today talent is one of the top three concerns of payments leaders, as stated by Deloitte. In the light of this predicament, individuals and organisations need to seek reskilling and upskilling development programs. The only way this shortfall can be met is by taking advantage of unique cross-skilling and knowledge transfer opportunities that cannot be achieved solely by one institution.
Learning with Uber Pay: Developing new skills and a renewed perspective on payments
Uber’s ambitious blueprints to radically change payments, could one day lead to it offering a bank account to its customers through its platform. Amidst these business altering transformations, having the opportunity to get an insider view of the organisation’s roadmap to navigating the payments landscape would be the ideal way for business leaders and professionals to gain a new perspective on the new challenges and opportunities in the industry.
This reality is not far fetched. CFTE’s Extrapreneurship programme with Uber aims to offer exactly this. The programme is designed to give professionals the opportunity to experience the environment and methodologies of a high-growth company through an 8-week intensive project. Participants will collaborate with other industry leaders to solve a real-world problem statement provided by Uber Pay.
The programme is structured to help professionals prepare for the business needs of tomorrow by working with Uber to help its 100 million monthly global users access payments. This opportunity of a lifetime, will help those eager to champion the next wave of disruption in financial services by developing an entrepreneurial mindset, agile working strategies, knowledge of design thinking and lean startup methodology. This development opportunity iis undoubtedly the next groundbreaking experience in one’s career.
Are you ready to think like an entrepreneur and put your skills to the test?
Learn more about the Uber Extrapreneurship programme to get an in-depth overview of what you can expect during the 8 week online programme with Uber Pay
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