Some of the Auka team visited Budapest yesterday to take part in a special event at the Norwegian Embassy about mobile payments in Hungary.
Tamas Fodor, Member of the Board, Sberbank
János Pereczes, Managing Director, MKB FintechLab
Dr Tuan Anh Trinh, Associate Professor, BCE, Corvinus Fintech Center
Daniel Döderlein, CEO and founder of Auka
The panellists discussed the market for mobile payments in Hungary and what the barriers to success were for banks and third-parties. All panellists were in agreement that it’s not a question of whether mobile payments will happen, but when.
The silent launch of Instagram’s new payments functionality and how that affects banks was also discussed quite a bit.
When the panel was asked by the audience what they felt their biggest threat would be in the future, the answers seemed to focus on three core points: GAFA, data security and maintaining customer attention. Most people raised their hands when Daniel asked whether they use Facebook or other social media apps more than their mobile banking. (Only one person – who will remain nameless – claimed to use their mobile bank app more than any social media, though!
Each of the panellists were asked to choose one key element they saw as neccessary for mobile payments success. Tamás said timing, Tuan said trust and security, János thought finding the right partner to work with was most important and Daniel thought it was key to identify and solve the right pain points for the end-user (consumers).
Some time was also spent discussing cultural differences between different markets and regions, especially with relation to the success stories in China, India, Nordics, etc. Germany came up as an example as a cash heavy country in Europe that are still very culturally attached to cash, due to security reasons. Sara pointed out that this is in some part due to their experiences with hyperinflation.
The main takeaway from this discussion was that one size does not fit all when it comes to anything. For example, why hasn’t Uber taken off in Hungary? It is crucial to identify market specific pain points before launching a mobile solution that seeks to solve these.
The bankers on the panel spoke about how the differences between having the decision making power in country and abroad – i.e. if the bank owner is Hungarian or is based in another country – and how that can impact the launch of new products or services – like mobile payments.
It was a fantastic opportunity to learn more from banks, payments and fintech experts in Hungary and we’re looking forward to many more fruitful discussions in the region.
If you’d like to find out more information or speak to someone from Auka about how to launch mobile payments in your market, click below.