Increased industry convergence between retail and fintech

Three days ago Amazon launched its new brick-and-mortar store Amazon Go. The new high-tech retail store is both cashless and “cashier-less”. The cashier has been replaced with state-of-the-art technology including AI, machine learning, financial technology, sensors and RFID. Recently, more and more large retailers has moved into the financial services industry with their own consumer banks, payment services and increased consumer data through loyalty cards. In 2013 Amazon quietly bought GoPago’s mobile payment technology and engineering team and according to sources back then “Amazon was getting into the mobile payment space and had major plans for it”.

The increased industry convergence has been seen in recent years with the likes of Alibaba making the transition into banking with Ant Financial and hereby challenging the incumbents within financial services and Amazon investing more resources into making payments for goods more seamless and mobile-friendly.