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Fintech Payments Could Cannibalize 15% of Banking Revenue, Accenture Projects

A dire warning: “Channels that once made the banks billions of dollars will cease to exist."

mobile payment using a smartphone Source: Shutterstock.

Traditional financial institutions may lose as much as 15% of their payments revenue — $280 billion — over the next six years to fintech competitors, free payments and third-party mobile wallets, according to an Accenture survey of 240 payments executives at banks in 22 countries.

The report said the spread of zero-fee payments is expected to eat 8% of banks’ payments revenue, competition from nonbank mobile wallets will consume another 3.9% and interest income losses associated with real-time payments will cost an additional 2.7% of payment revenues.

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