Big tech and payments

A late 2017 McKinsey study warned payments firms should be more worried about “Big Tech” than fintechs as a threat to their businesses. Since then, Facebook, Apple, Google and Amazon (“FAGA”) have made further inroads into global payments. PCM Editor James Wood looks at recent developments, and speaks with AlixPartners Managing Director, Mark Flamme, about regulatory concerns and consumer reluctance.

“Compliance and regulatory awareness remain weak spots for Big Tech firms. There are payments-specific risks they may have less experience of, such as KYC and credit risk – it’s unlikely many senior staff at Facebook or Google have experienced the downside of a credit cycle.”

-Mark Flamme, Managing Director

This article originally appeared in Payments Cards & Mobile Magazine's April 2019 issue.