Six of the major Polish banks have launched a mobile payments service called Blik, backed by a new mobile payments standard (the Polish Payment Standard) that presents a challenge to the international card schemes.
It’s unlikely that a new payment scheme will ever be able to challenge the dominance of Visa and MasterCard internationally. Such an organization would need to build up a network of comparable scale, which would mean partnering with almost every major player in card issuing and acceptance around the world.
With that said, it is possible for a new scheme to arise domestically, since it’s a lot easier for players to collaborate in a single market. It seems likely that the collaboration of Polish banks in the Blik service will lead to a network as widespread as Visa’s or MasterCard’s within Poland. Blink is rapidly accruing partnerships among major payments players in Poland, including online payments brand Przelewy24, and numerous other retail banks in the market.
The Blik service is limited to mobile devices but can be used online, at the POS, or even for P2P transactions. Visa and MasterCard currently dominate the Polish card market, but the mobile payments space is still developing, and with all the major banks behind it, Blik could easily become the major brand in mobile payments. Within a month of its launch in February 2015, Blik had apparently gained 0.5 million users in the market, signaling its high potential for growth.
It remains to be seen whether Blik can maintain its momentum, but if it can do so, it will become a major threat to the dominance of Visa and MasterCard in Poland’s electronic payments sector.
– This article is reproduced with kind permission from Datamonitor Financial. Some minor changes have been made to reflect BankNXT style considerations. You can read the original article here.