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October 28, 2019

American Express must differentiate its Pay with Bank transfer service

By GlobalData Financial

American Express should enhance the customer journey of its Pay with Bank transfer service by incorporating the likes of biometrics to compete with other payment providers and banks. By differentiating its upcoming instant banking service, it is likely to be more successful in the UK.

Launching later this year, American Express’ Pay with Bank transfer service will enable UK consumers to instantly and securely pay for goods and services online without leaving the merchant’s website.

Furthermore, the instant banking service will be available to current account holders at banks in the UK, even if they are not American Express card holders.

There are various reasons why American Express’ instant banking service is likely to be increasingly appealing to consumers. One of its main benefits is that users will not need to enter their card details for every payment. The service is also more secure, as consumers will be able to pay directly from their bank account without leaving the merchant’s website.

Merchants themselves are also likely to benefit from increased conversion rates, as the customer journey to pay for goods and services is made simpler. Another benefit for merchants is that they will pay lower fees than they ordinarily would when accepting card payments.

Given the service’s multi-layered benefits, it has plenty of potential and will allow American Express to target more people in the UK. This is especially the case given that users do not need to be an American Express card holder to utilise it. Thus, once these users try the product, they may be convinced to switch to American Express entirely. Furthermore, if this service is launched across Europe, American Express is likely to see a rise in card users.

The main challenge American Express faces in the UK is increased competition from other payment companies that provide very similar pay-by-bank options for online shopping.

For instance, Mastercard’s own service allows people and organisations to make purchases online from their bank account. Another example is Rapid Transfer by Paysafe, a propriety bank transfer payment service method that enables customers to pay directly from their bank account without leaving the website. American Express also faces competition from various other banks that provide similar services, such as Barclays and NatWest. Given the increased competition, it is imperative that American Express differentiates itself, such as by enhancing the security of the bank transfer service by incorporating biometrics.

Overall, American Express’ instant bank transfer service is likely to receive significant interest from those who prefer secure and seamless online payments. However, given that the company is facing increasing competition from other payment companies and banks, it will need to differentiate itself and its services in order to stand out. For example, it could improve Pay with Bank transfer by incorporating fingerprint authentication. Not only will this help to enhance security, but it will make the payment process more efficient.

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