Payments is an area where banks expect start-ups to have the most impact. In Payments, 71% of banks believe the impact will be high or very high. Within the payments space the segments where banks expect start-ups to have the most impact are Mobile P2P and Mobile Wallets.

Predicted Impact of Start-Ups on Payments

Using a scale of 1 to 7, the categories are High (6 or 7), Neutral (3, 4 or 5), Low (1 or 2)

Start-ups disrupting the payments space


BitPesa is a Kenyan company which allows individuals and businesses to send money to and from Kenya and Tanzania, using Bitcoin as the money transmission mechanism. The company was launched in 2014 and is backed by venture capital investors. The company will accept Bitcoin from nearly anywhere in the world and exchange it for Kenyan and Tanzanian Shillings. The recipient will receive Kenyan or Tanzanian Shillings into a Kenyan or Tanzanian mobile money wallet (e.g. M-Pesa, Tigo, Orange, Airtel, or Yu). Fees are only 3% of the transaction, much lower than traditional forms of money transfer, and the money is received in the account in minutes.

According to BitPesa, SME and Micro SME customers are using the platform to pay and receive salaries from abroad, access real-time payments for supplier shipments, and market their products globally. BitPesa’s goal is to build a completely transparent, low-cost, instantly interoperable company that does not have a legacy of paperwork or outdated systems, despite presence in frontier markets. They have already built partnerships with payment and exchange companies in China, Canada, US, Europe, and India with less than a week of integration work, have incorporated in Kenya, Tanzania, Uganda, and Nigeria and are receiving an MRB Payments Institution License in the UK.

BitPesa is one of many companies now targeting the remittance space with Bitcoin-based services. These include Rebit (Philippines) and Abra (United States).

Yoyo Wallet

Yoyo is a UK company which in 2014 launched a mobile wallet that simplifies and speeds up in-store transactions by combining payment and loyalty via one easy scan. It also provides a marketing platform for retailers that enables digital customer engagement in-store. The company is funded by venture capital investors.

Yoyo was founded by Alain Falys and Michael Rolph who were frustrated with the growing number of ideas that tried to solve a problem that didn’t exist – payments are not broken. They set out to build Yoyo Wallet as the solution that cuts through the ‘mobile payment’ noise and actually benefits retailers and consumers. The question they set out to answer was “how do you make mobile relevant for retail”?

With Yoyo the user preloads money onto the wallet and then, at the point of sale, a unique QR code is generated for each transaction. The retailer then scans the code to receive the payment. It does not require proprietary technology, only a 2D barcode-scanner which is already found in around half of retailers. Yoyo has focused initially on university campuses and has spread to 15 British universities as part of its focus on "closed environments". Since receiving additional venture capital funding in 2015, it is now in the process of expanding into the United States.

About Finacle Payments Bank solution
Finacle Payment Bank offering is a one-stop solution for a payments based banking business model. This solution is designed to help payments banks create a growth focused business by serving the unbanked population profitably.
The Finacle Payments Bank solution is a comprehensive, preconfigured, pre-integrated banking platform that is ready to be deployed.

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