With adoption of Apple Pay continuing to underwhelm industry watchers more than a year after the technology debuted, an Omaha-based payments startup thinks it has the recipe to succeed where Apple has not.
Prairie Cloudware, a developer of digital payments technology, is putting financial institutions in the driver's seat when it comes to so-called mobile wallets that let consumers store payment information on a mobile device.
"When you talk about payments and managing money, consumers aren't going to look to tech companies," said Doug Parr, chief revenue officer at Prairie Cloudware. "People aren't going to trust entities like that with their money."
Parr says they will trust their banks. Thanks to a new licensing deal with Union Bank and Trust in Lincoln, banking customers at one of the largest banks in the state could prove just how much more comfortable they are with a bank-branded mobile wallet over those of higher-profile competitors.
UBT has assets of $3.2 billion and is the sixth-largest bank in
Nebraska in terms of in-state deposits.
"Even if you put a card into Android Pay or Samsung Pay or Apple Pay, you still call the bank if there's a problem," Parr said. "That trust is going to be a driving factor that will enable banks to offer mobile wallets on a wider basis and have wider consumer adoption."
Apple Pay dominates the market for such technology, but adoption of it has been relatively low, according to industry watchers.
There's no firm timeline on when the bank will have the product ready, and UBT officials declined to comment.
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