Capgemini’s World Payments Report 2021

Capgemini’s World Payments Report 2021

As transformation momentum continues to shake up payments…enter Payments 4.X the new, experience driven era

By now it is clear that the pandemic has created a line in the sand for the payment industry. Before Covid-19, things were steadily moving away from cash and clunky payment systems. But throughout the last 18 months or so, we have seen a swift, necessary shift to digital payments and better payment solutions. Payment Fintechs have moved forward in leaps and bounds.

Capgemini’s most recent World Payment Report 2021’ looks back over the year, highlighting the effects of Covid-19 and discussing the new payments landscape. Expecting that consumer spending will increase after 2021 and return to pre-pandemic levels, there is huge potential in the payments space.

Payments 4.X has arrived, and Capgemini states that future-proofing firms will be making the most of the opportunity it brings. The new payments era incorporates data, shared infrastructure, robust platform capabilities and embedded finance. Customer-driven expectation of faster payments, reliable security and a user-friendly experience will continue to push the industry forwards.

The use of instant payments and e-money in 2021 has increased by around 10% since 2020, and is likely to continue to grow. Areas of innovation likely to evolve include ‘Buy Now Pay Later’, biometrics and cryptocurrency. These technologies are expected to push the boundaries of the payment industry as we know it. 

Companies using traditional payment methods though will suffer unless they update their operational capabilities. The focus for customers and businesses must be on experience, and appropriate support will be key if businesses are to provide reliable solutions. Pairing with PayTech and ecosystem providers as advisory partners instead of solution providers will be essential. Truly successful businesses will use their customer trust, domain strength and expertise, and improve these foundations with API data and cloud-based agility. Firms using data to help make informed decisions about risk, credit-based lending and trade lending will benefit.     

Payment 4X seems designed to mirror the expectation of the regulators. The report explores how companies can best navigate the regulatory environment and the industry initiative (KRII’s), and emphasises standardisation, transparency, collaborative ecosystems and the need to reduce risks. This is all to prevent companies from having a monopoly, and instead promotes data sharing and innovation, paving the way to open finance.

As a company, being able to communicate what you do and how you do it is key to growing your business. FS Partnership provides clients with access to people who will work with you and truly understand the difficulties faced by both large global institutions and challenger brands in the industry. Our adaptable approach is built around your objectives and business culture. We simplify the complexity, and can help your organisation to grow. Please get in touch here.

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