When tech giants like Apple, Google and Amazon first entered the financial services industry in the 2010s, many believed they would significantly disrupt the traditional financial ecosystem, some expected that they would completely upend traditional banking. With their vast user bases, cutting-edge technology, and deep pockets, they were expected to dominate payments, lending, and other financial services – if not overnight, certainly in a few years. Over a decade later, while Big Tech has undeniably influenced finance, their disruption hasn’t been as overwhelming as expected.
The question is, why haven’t they conquered finance, and with the AI revolution at our doorstep, is it different this time around?
Big Tech’s Move into Payments
Big Tech’s involvement in finance can be traced back to the early 2010s, when companies began leveraging their ecosystems to offer payment services.
Apple Pay, launched in 2014 is available on various Apple devices and uses NFC technology for contactless payments. It supports in-app and web purchases and integrates with the Apple Card for cashback rewards. Apple Pay has seen significant growth since its launch in 2014, and is projected to account for 10% of global card transactions by 2025, up from about 5% in 2020. Apple Pay is one of the early movers, and maybe the most notable Big Tech payment platform.
Google Pay emerged only in 2018, but its two foundations, Google Wallet, dates back to 2011 and Android Pay, to 2015. Google Pay facilitates a digital wallet to store credit, debit, and loyalty card information securely, contactless payments using NFC technology on Android devices, online and in-app purchases, rewards and offers, and regionally, peer-to-peer transfers and transit payments. Google Pay emphasises security through encryption, fraud protection, and built-in authentication methods. It also offers convenience by saving payment details for quick access across Android devices and Chrome browsers. Along with Apple Pay, it accounts for over 35% of mobile wallet transactions worldwide.
Introduced in 2007, Amazon Pay leverages Amazon’s large user base and is primarily used for online purchases. It offers a seamless checkout experience on Amazon and on partner websites. In early 2024, Amazon Pay integrated cryptocurrency payments for select merchants, allowing users to pay with Bitcoin and Ethereum. The service also has its own buy now, pay later feature, Amazon Pay Later. Amazon Pay is projected to account for 5.3% of the global online payment market by the end of 2024.
Samsung Wallet, a label initially used in 2013, finally merged Samsung Pay and Samsung Pass into a single platform in 2022. It is exclusive to Samsung devices and uses both NFC and MST technology for payments. Samsung Wallet boasts a tech prowess; it stores digital car keys, boarding passes, cryptocurrency assets, ID cards, and loyalty cards, as well as credit and debit cards for in-store purchases, and includes Samsung Pass functionality for biometric authentication.
A latecomer to the party, Facebook (Meta) Pay was introduced in 2019. It aims to provide a consistent payment experience across Facebook, Messenger, Instagram, and WhatsApp. It allows users to add their preferred payment method once and use it across these platforms for various transactions, including fundraisers, in-game purchases, event tickets, and person-to-person payments. Facebook Pay supports major credit and debit cards as well as PayPal, and processes payments in partnership with companies like PayPal and Stripe.
Why Haven’t Big Tech Dominated Finance?
Despite the initial expectations of Big Tech companies revolutionising the financial industry, their impact has been relatively constrained due to their focus on proprietary ecosystems and a narrow range of financial services. Companies like Apple, Google, and Samsung have primarily concentrated on developing payment solutions for their own devices and operating systems, while Amazon and Facebook have integrated payment features within their existing platforms and marketplaces. This strategy has limited their reach to users already within their ecosystems.
Moreover, Big Tech’s financial services offerings have predominantly centred on payments, with only modest forays into lending and other banking services. This narrow focus has resulted in a less disruptive effect on the broader financial industry than initially anticipated. Traditional banks and financial institutions have maintained their dominance in core banking services such as savings accounts, mortgages, investment products, and complex financial instruments.
Consequently, while Big Tech has certainly influenced consumer behaviour in digital payments and reshaped expectations for user experience, their impact on the overall structure and operations of the financial services industry has been more evolutionary than revolutionary.
The Rise of Fintechs
The emergence of fintech companies also took a toll on Big Tech’s ambitions in the sector. Fintechs, with their agility and focus on specific financial niches, moved swiftly into spaces that both banks and Big Tech were eyeing. Unlike Big Tech companies, which were largely constrained by their existing ecosystems and core businesses, fintechs were able to innovate across a wide spectrum of financial services, from payments and lending to wealth management and insurance. This diversification allowed fintechs to capture market share in areas where Big Tech had planned to expand, such as mobile payments, peer-to-peer lending, and digital banking.
The rapid proliferation of fintech startups—with over 10,000 in America and 9,000 in Europe, the Middle East, and Africa by 2021—created a highly competitive environment. This competition forced Big Tech to reassess their strategies, often leading them to partner with or acquire fintechs rather than developing all financial services in-house. Consequently, the fintech boom effectively diluted Big Tech’s potential impact on the financial industry by creating a more fragmented and specialized market where numerous players competed for consumer attention and market share.
Regulation slows the Big Tech’s game
The highly regulated nature of the finance industry has indeed played a significant role in slowing down Big Tech’s expansion into financial services. These regulations often require significant adjustments to their existing technology solutions and business models. The financial sector operates under strict rules that Big Tech companies, accustomed to the less regulated tech industry, find challenging to navigate.
The regulatory framework in finance is fragmented and interconnected, cutting across different policy areas traditionally regulated separately, which doesn’t help newcomers at all, such as Big Tech. This fragmentation creates challenges in oversight and enforcement, as responsibilities are divided across multiple agencies, including banking regulators, securities regulators, insurance regulators, competition authorities, data protection agencies and cybersecurity experts.
Financial services deal with highly sensitive customer data, making data privacy and security top priorities. Big Tech firms’ data handling practices have lately come under scrutiny, raising concerns from both customers and regulatory authorities. This has necessitated additional measures and safeguards, further slowing their entry into the finance sector.
Regulators are still grappling with how to effectively oversee Big Tech’s financial activities. The current regulatory approach, which focuses on specific financial activities, may not fully capture the risks associated with Big Tech’s unique features and interconnected business models. This has led to calls for a new policy approach that considers the scale, customer base, and data access of Big Tech companies. While it’s uncertain how the regulations will evolve, it’s fair to say that the eyes of regulators are on the brakes and not the accelerator.
Banks and Payment Networks Moved Forward Too
Traditional financial institutions have substantially increased their technology spending to compete with Big Tech and fintech challengers. According to American Banker’s 2025 Predictions Report, over 80% of bankers surveyed planned to increase their tech budgets, focusing on security, data analytics, and AI. This investment in modernisation has allowed banks to offer improved digital experiences, narrowing the gap with Big Tech’s user-friendly interfaces.
Many banks have pursued strategic partnerships with fintech companies or acquired promising startups to quickly gain technological capabilities. This approach has allowed them to integrate innovative solutions without building everything from scratch, effectively defending their position in the market.
Legacy payment systems have evolved to meet changing consumer expectations. The development of real-time payment systems and the adoption of technologies like blockchain have improved the speed and efficiency of transactions. And while the tech giants and fintechs act as an extra layer, they don’t own the rails of financial transactions.
Consumer habits change, but more slowly than assumed
Legacy banks and financial institutions have maintained a significant advantage in trustworthiness when it comes to handling money, which has played a crucial role in slowing down and limiting the shift towards tech companies in the financial sector. According to a 2022 study by Morning Consult, over 60% of consumers still trust traditional banks, while only 37% and 43% stated they trust fintechs and digital banks, respectively.
This deep-rooted trust is a result of decades, if not centuries, of operation, establishing a strong foundation of reliability and security in safeguarding consumers’ money and personal information. Consumer habits in finance tend to change more slowly than initially assumed, which has contributed to the limited shift towards tech companies in this sector. The familiarity and comfort that consumers have with traditional banking services create a significant barrier for new entrants, even tech giants many people otherwise trust, even love.
Will AI Become a Game Changer for Big Tech?
Yes and No.
Big Tech’s real play in AI is far bigger than disrupting the financial industry—it’s about becoming the foundational layer for AI adoption across all sectors. Companies like Google, Microsoft (through OpenAI), and Amazon are positioning themselves as the infrastructure providers of AI, much like how cloud computing became an essential backbone for digital services. Their goal isn’t to compete with banks or fintech firms directly but to ensure that every business, including those in finance, relies on their AI models, tools, and cloud services. The potential revenue from licensing AI models, powering enterprise applications, and selling AI-as-a-service far outweighs any gains they could make by trying to replace financial institutions.
For Big Tech, AI is a horizontal technology—one that cuts across industries rather than being confined to a single vertical. If they were to focus solely on using AI for financial services, they’d be limiting their market to an already competitive space, where regulation, trust, and customer relationships matter as much as technology. Instead, by offering AI as a service, they gain a much broader reach, helping banks, fintechs, and insurers build their own AI-driven products. This approach also aligns with their existing business models—Google thrives on AI-powered search and advertising, Microsoft integrates AI into enterprise software and cloud, and Amazon focuses on AI-driven logistics and cloud computing.
Moreover, Big Tech companies understand that financial services are heavily regulated, with strict compliance requirements and deep-rooted incumbents. A direct push into finance would invite scrutiny from regulators, limiting their ability to innovate freely. Instead, by acting as the technology enablers for the finance industry, they can reap the benefits of AI adoption without taking on the burdens of financial regulation themselves. Banks and fintechs will continue to lead in customer-facing financial products, but increasingly, they will do so using AI models and tools provided by Big Tech. In this sense, AI isn’t a game-changer for Big Tech in finance—it’s a game-changer for Big Tech in every industry, with finance being just one of many sectors that will ultimately depend on their AI capabilities.
