The latest research in Payments – June 2020
The emergence of fintechs revolutionised the way products and services were delivered by financial institutions. Now, they are set to disrupt and evolve the world of payments. Businesses are quickly growing mindful of the fact they must adopt a truly customer-centric approach in all areas in order to regain and retain consumer trust and loyalty. Convenience, consistency and security are key requirements to deliver a seamless customer experience. The payments landscape has already shifted from cash to cards to contactless and the reports below give an indication of what may be next on the horizon.
Deloitte’s report focuses on the continued expansion of the dynamic payments industry across the globe. Incumbents have continued to modernise their infrastructure, invest in new digital technologies and engage in M&As to add capabilities and enhance their platforms. Deloitte’s research suggest this evolution will continue throughout 2020 and beyond. They predict increased competition between closed and open platforms, development of new standards to govern and protect customers’ money and data and an increased role for non-commercial entities within the financial sector.
Regulation and risk reduction will be key targets in the payments industry according to Capgemini. With the increase in digital technologies, it is imperative to increase security against fraud, money laundering and cybercrime. Greater focus will also be given to data integrity to ensure modern payment systems are not at risk. New payment methods will be enhanced by back office optimisation. Banks will endeavour to both compete and collaborate with challenger banks and fintechs in the payments landscape.
UK Finance focuses on the changing demands, needs and expectations of customers globally and how the payment industry must evolve to meet them. This report examines consumer use of credit and debit cards by demographic in addition to new technologies such as smartphone payments and how this compares to those still using cash.
Finextra believes the Payments industry will focus on user convenience and customer experience through 2020. The report focuses on Network Tokenisation, Strong Customer Authentication and Biometrics as three technologies that will shake up the Payments landscape and provide more efficient, more secure services to customers.
Digital banks have strong reputations for providing intuitive user interfaces, swift on-boarding and a seamless customer journey. Sifted’s report focuses on the emergence of the lesser known start-ups they deem Fintech Enablers. These are software companies who build tools intending to democratise banking and bring financial capabilities to all companies – incumbent banks and challenger banks alike.