March 30, 2018
The field of financial technology or fintech aims to leverage the latest technologies to make payments and investing easier and more transparent for consumers. KPMG reports global investment in fintech reached a staggering US $8.2 billion in Q3 of 2017 alone. The fintech market continues to grow and evolve at a healthy pace as the field presents a diverse array of interests, technologies and funding sources. Like other tech spaces, we see large venerable companies investing in startups globally to help increase competitiveness and improve customer experiences.
Acquisition of Cake Technologies
This year, American Express will be onboarding Cake Technologies. Cake Technologies is a UK based startup that offers a mobile platform for full service payment options for the restaurant and bar industries. The app allows users to discover, book, pay and earn loyalty at bars and restaurants in the London area.
Like most customer interaction applications, the Cake Technology app also provides actionable insights for venues and restaurants that helps increase revenue and customer loyalty and retention.
A recent TechCrunch article outlines the recent deal between American Express and Cake Technologies. The acquisition deal went through last October. American Express paid an approximate $13.3 million for the startup. The services offered by Cake Technologies will open to American Express card holders this year. American Express views the move as strategic for customer loyalty and experience as dining is an arena many Amex holders feel passionate about.
With the launch of the POS technology, American Express will continually increase intelligence as to what their customers are buying specifically versus just where they shop.
Fintech in Point of Sale
The acquisition of Cake Technologies isn’t a strategic move for American Express’ digital strategy, but rather giving customers more of what they want; easier ways to pay and facilitate transactions from their mobile devices. As consumers, we can expect to see more fintech innovations integrating point of sale capabilities into our mobile devices. Will fintech POS innovation eventually make the physical credit card obsolete?