5G and new points of interaction in paymentsJanuary 3, 2023
5G technology is changing the ways people work, shop and play across physical and digital worlds. A new paper by American Banker with Mastercard and Verizon explores the resulting opportunities for financial institutions to empower businesses and innovate the future of commerce and payments.
The high speed and low latency that 5G and edge computing enables can power technologies, platforms and new frameworks that we expect to transform how banks, consumers and businesses interact with each other, including artificial intelligence (AI), data analytics, Internet of Things (IoT), a zero-trust security model, virtual reality and eventually the metaverse. As they become more widely adopted, financial institutions should shift from product-centric roles to becoming aggregators that work with fintechs and others to deliver apps to consumers and businesses.
A major challenge for the 31.7 million small businesses in the U.S. is managing cash flow, according to the U.S. Small Business Administration’s Office of Advocacy. 5G connectivity can power tools that financial institutions provide to small businesses to help solve that problem. Through installment plans, entrepreneurs can access capital instead of securing financing at higher rates. And small businesses can take advantage of procure-to-pay systems, accept payments cost-effectively through mobile devices and use mixed reality experiences to engage with customers and drive brand loyalty.
Mastercard and Verizon encourage bankers to reach out to their respective organizations to explore the wealth of opportunities in next generation connected and intelligent interactions.