Banks happy to live with tech firms moving into payments

PAMELA NEWENHAM in Barcelona

Francisco Gonzalez, the chief executive of Spanish bank BBVA, has said he is happy to live with tech firms moving into the payments space, as the banking sector needs more competition.

South Korean tech giant Samsung announced a new mobile payments system – Samsung Pay at Mobile World Congress.

However, while the tech firms are moving into the financial space, Mr Gonzalez said BBVA was moving into the tech space.

“We are turning a bank into a digital house - it’s a long journey. If you don’t have the right tools, you can’t compete.”

The bank has been preparing for moves like Samsung and Apple into the payments space. Last year it bought US banking startup Simple for $117 million.

“There is a threat element which I like because banking needs competitors. We need to be more efficient but we can also collaborate with them,” Mr Gonzalez said.