Barclays and PayPal have announced their decision to come together and form a super team in an attempt to allow Barclays customers in the U.S. and Britain to use their PayPal accounts on the bank’s online and mobile platforms & also allow Barclays cards and services in PayPal accounts. Although there are significant concerns from bank industry executives that big technology companies could potentially take over the $1.8 trillion global payments industry, Barclays still believes this will maximize productivity and user benefits from joining the service.
The two companies have agreed to partner to combine their services for customers, according to Barclays reports earlier this week. PayPal hasn’t had participation from independent banks like Barclays in the past, so this sudden team effort will be an attempt to give users on both platforms the opportunity to make the most of their financial experience. With plenty of daily users on both interfaces, it will be convenient for dual users to optimize their experience and reap the benefits.
This move does come at an exciting time because there are mounting concerns from bank executives that big technology companies could very likely dominate the global payments industry soon. In reference to CNBC, it is possible that “big technology companies such as Amazon and Apple in the U.S. or China’s Alibaba could come to dominate the $1.8 trillion (£1.29 trillion) global payments industry.”
According to consultancy McKinsey, the ever-expanding customer base of tech companies could overtake banks as the face of an industry that accounts for “34% of all banking revenues.” The dominance of PayPal and other similar companies may seem daunting, but this may be the beginning of a mutualistic relationship that can be beneficial to both sides.
