Barclays boss Jes Staley warned that firms outside the finance world had spotted a moneymaking opportunity in the transactions handled by lenders

Now Apple and Amazon are a threat to banks

Amazon, Apple and other tech titans are seeking to steal payments business from banks, the boss of Barclays has said.

Jes Staley warned that firms outside the finance world had spotted a moneymaking opportunity in the transactions handled by lenders.

There were 14.9bn purchases on credit, debit and charge cards last year, according to industry body UK Finance – up 10.7 per cent on a year earlier.

Barclays boss Jes Staley warned that firms outside the finance world had spotted a moneymaking opportunity in the transactions handled by lenders

Barclays boss Jes Staley warned that firms outside the finance world had spotted a moneymaking opportunity in the transactions handled by lenders

When payments are made, the companies typically take a fee and internet firms are casting an envious eye.

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‘There are some tectonic shifts going on, driven by tech and the political environment,’ Staley said at a meeting of the Institute of International Finance in Washington DC.

‘All the banks are very focused on the payments space. That may be where the battleground of finance is fought over the next 15 years.’

It comes as lenders prepare for a new European Union rule which will force them to hand customers’ financial information over to rivals.

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Furious MPs have blasted Royal Bank of Scotland’s boss after he said the lender is being unfairly criticised.

Entrepreneurs say their businesses were deliberately wrecked by RBS’s infamous global restructuring group but chief executive Ross McEwan said last week there was ‘absolutely no evidence’ for this claim and alleged victims should sue.

The all-party parliamentary group for fair business banking’s Lord Cromwell said it ‘exemplifies what is so wrong with the aggressive and heavy-handed RBS approach to its customers’.

The Payment Services Directive 2 (PSD2), will next year allow merchants such as Amazon to take cash directly from buyers’ bank accounts – if they give permission – without going through a third party service such as Visa or Paypal.

In theory, this should save both sides money by cutting out hidden fees.

PSD2 will also allow companies to offer online services that show all a customers’ bank accounts in one place, even if they are with several different lenders.

Apple Pay and Google’s Android Pay already allow customers to transfer money using their smartphone instead of a bank card.

There have been persistent claims that tech companies are planning a battle with the banks.

In February, it was rumoured that Amazon could mount a bid for US credit card pioneer Capital One.

US internet behemoths are among the few companies with deep enough pockets to challenge the biggest players, though some City sources suggest tough regulation could put Amazon and Apple off.

Posted on; DailyMail>>

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