The ever changing market and adoption of buying on line is exploding the use of none banking type payment platforms. This is particularly noticeable in China where Tencent over a 5 day period (Chinese New Year) were processing 800 million payments per hour.
As noted in the article Goldman Sachs, JP Morgan and Citi trading revenues fell fell in the second quarter of 2017.
In the meantime between 2000 and 2016 it seems that 3rd party payments have grown by 74 times representing payments of a staggering US$11.4 trillion in China.
It is clear that Banks need to do more to compete with the large Fintechs as otherwise as Ulrich ( Vice Chair at JP Morgan Chase - Asia Pacific states: '... Otherwise we will be left with no business.'
Speaking before a crowd of hundreds at the Rise Conference in Hong Kong last month, Jing Ulrich, vice chairman Asia Pacific at JPMorgan Chase, heaped praise on the two Chinese online payment juggernauts, Alibaba Group’s Alipay and Tencent’s Tenpay. “JPMorgan every year, as we speak, processes through our QuickPay 94 million payments,” she said. “But Tencent, the Chinese company, over Chinese New Year, in five days processed 46 billion payments. Basically that means 800 million payments per hour.” “Visa has a maximum capacity of processing 25,000 payments per second. But Alipay can process 50,000 payments, twice as much, per second,” Ulrich said.