Self-driving cars will change the world – and banking

These days it seems the news is full of stories about autonomous driving.

The other day I came across the video below. It shows what can happen when an unprepared person is placed behind the wheel of a self-driving car. In this case, the car was a Tesla in autopilot mode and the driver was the owner’s mother.

Source: https://www.youtube.com/watch?v=QVU6ANI059M

The video highlights what can happen when standard expectations confront new modes of behaviour associated with technological innovation. In this case the disjuncture is hugely discomforting for the lady sitting in a Tesla Model S.

But Tesla is not alone in developing self-driving cars.

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Fingerprint payments to be developed in time for Tokyo 2020 Olympics

Last week the Japanese Government announced that it would commence development of fingerprint payment technology in time for the Tokyo 2020 Olympics.

The system is part of a broader strategy to increase the annual number of foreign tourists to visiting Japan to 40 million by that date.

The way the system will work is that:

inbound tourists will register fingerprints when they arrive in the country
fingerprint records will be associated with a bank or credit card account
tourists will then pay for purchases by using fingerprint readers in stores, restaurants, etc
data collected by the system will be used to identify tourist movements and spending habits

JapanFingerprintPayments — Source: The Yomiuri Shimbun

The system is to be initially trialed in 300 restaurants, shops and hotels popular with tourists, with a view to it being extended country-wide by 2020.

What are the implications?

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Apple Pay isn’t doomed yet. An Australian perspective on US mobile payments

Over the last six months, the news for Apple Pay has been pretty mixed. While the payments system has grown its footprint internationally and recorded some successes, US experience has been far from stellar.

The key trend emerging is that while US consumers are happy to trial Apple Pay, ongoing usage is disappointing. In fact, repeat usage is declining, as reported here, here, and here (there’s lots more) which must be of great concern to Apple.

Why are US consumers failing to utilise Apple Pay in greater numbers? One answer, according to an article on PYMNTS.com called ‘Apple Pay Meets Its Biggest Foe Yet: Consumer Apathy’, is well… consumer apathy.

I think the real answer is more nuanced than that.

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