The banking industry continues to be a hotbed of innovation owing to ever changing consumer expectations. The rapid technological developments in the areas of banking and payments that aim to offer seamless experience to consumers are now becoming even more vital for industry participants as competitors leverage new technologies such as artificial intelligence, Internet of Things, cybersecurity, and embedded finance as they compete to stay relevant and grow in the market. In the last three years alone, there have been over 92,000 patents filed and granted in the banking industry, according to GlobalData’s report on Online payments in Banking: contactless payments.
According to GlobalData’s Technology Foresights, which uses over 195,000 patents to analyse innovation intensity for the banking industry, there are 60+ innovation areas that will shape the future of the industry.
Contactless payments is a key innovation area in online payments
Contactless payments use radio frequency identification or near-field communication (NFC) technologies, which allows individuals to pay quickly by tapping card, mobile phone, or another payment device on the point-of-sale terminal.
GlobalData’s analysis also uncovers the companies at the forefront of each innovation area and assesses the potential reach and impact of their patenting activity across different applications and geographies. According to GlobalData, there are 50 companies, spanning technology vendors, established banking companies, and up-and-coming start-ups engaged in the development and application of contactless payments.
Key players in contactless payments – a disruptive innovation in the banking industry
‘Application diversity’ measures the number of different applications identified for each relevant patent and broadly splits companies into either ‘niche’ or ‘diversified’ innovators.
‘Geographic reach’ refers to the number of different countries each relevant patent is registered in and reflects the breadth of geographic application intended, ranging from ‘global’ to ‘local’.
Capital One Financial is one of the leading patent filers in the area of contactless payments. The company has a patent filed for a wearable device that utilises a wireless component to pair the wearable device and the user device and provides to the user device the information via the wireless component. The wearable device may contain information on the source of funds. Some other key patent filers in this space include Dynamics, DeviceFidelity, Digimarc, and Angel Playing Cards.
In terms of application diversity, Angel Playing Cards leads the pack. Digimarc and Healthy io stood in second and third positions, respectively. By means of geographic reach, Shenzhen Sensetime Technology holds the top position, followed by Samsung Group and Angel Playing Cards.
To further understand the key themes and technologies disrupting the banking industry, access GlobalData’s latest thematic research report on Online Payments.