Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Top-10 Trends in Payments: 2019

Customers’ increasing expectations for value-added services are stirring fast-paced disruption in today’s payments industry while regulators push collaboration and open ecosystems, and agile new entrants transform the scene even further. Business as usual now demands continuous innovation and adoption of emerging technologies such as application programming interfaces (APIs), real-time payment (RTP) infrastructure, robotic process automation (RPA), and the Internet of things (IoT). Powered by these enabling new technologies, open banking is encouraging firms to adopt Platform-as-a-Service (PaaS) delivery models to connect various stakeholders for the exchange of data and value. Heightened openness is spurring the need for robust digital identity, advanced data and privacy protection, and regulators’ emphasis on balancing supply push with market-demand pull. Based on the latest industry activity, our analysis of the top-10 payments trends for 2019 explores changing landscape dynamics and potential challenges and benefits.

  • Login to see the comments

Top-10 Trends in Payments: 2019

  1. 1. Top 10 Technology Trends in Payments: 2019 November, 2018
  2. 2. Payments Trends 2019 | November 2018 © 2018 Capgemini. All rights reserved. 2 Digital identity (DI) has become critical for ensuring cyber security and consumer safety Source: Capgemini Financial Services Analysis, 2018; Javelin Strategy, “2017 Identity Fraud: Securing the Connected Life”, February 1, 2017, https://www.javelinstrategy.com/coverage-area/2017-identity-fraud# National ID Scheme and Centralized Database Reduce Infrastructure Costs Digital Identity 44% Expected increase in new-account fraud from 2014 through 2018 while annual losses were predicted to grow from US$5 billion to $8 billion Key Benefits of DI Ensure Interoperability Omni Channel Experience Advanced Authentication Development of New Payments Ecosystem Cyber risks mount with increasing digitalization
  3. 3. Payments Trends 2019 | November 2018 © 2018 Capgemini. All rights reserved. 3 Rationalization of new solutions introduced during ramp-up Need for Standardization and Interoperability to Address Interoperability Alleviate Conflicting or Competing Effects of KRIIs Global regulators increase focus on standardization to foster market demand for innovation Source: Capgemini Financial Services Analysis, 2018; World Payments Report 2018; Key Drivers Few mature markets such as the UK and Singapore illustrate why a balance between regulatory supply and industry demand is both necessary and ideal Countries such as Brazil and China rely heavily on regulators and suffer from lack of industry demand, which is not a sustainable proposition
  4. 4. Payments Trends 2019 | November 2018 © 2018 Capgemini. All rights reserved. 4 Several countries are introducing data privacy and protection regulations aligned with the EU’s GDPR, which will continue over the next 2-3 years Regulatory Mandates PSD2, CMA (UK) Payment Schemes Become Collaborative with APIs Payment Infrastructure Transition to Open Rise of Unbundled Specialized Service Offerings Source: Capgemini Financial Services Analysis, 2018; Capgemini World Payments Report, 2018 Data protection and privacy is critical for payments security in an increasingly open environment Open and Accessible Corporate and Customer Data $96 Billion Big Data and Analytics Spending on Security by 2021 $26.4 Billion Global public cloud management and security services market by the end of 2022
  5. 5. Payments Trends 2019 | November 2018 © 2018 Capgemini. All rights reserved. 5 Analytics and machine learning powered by rich transaction data enable secure, targeted offerings Source: Capgemini Financial Services Analysis, 2017; Benefits Risk Management Identification of New Patterns Rewarding Loyalty Programs Offering Personalization PotentialAdvantagesofAIand MachineLearning
  6. 6. Payments Trends 2019 | November 2018 © 2018 Capgemini. All rights reserved. 6 APIs act as collaborative ‘glue’ within the new payments ecosystem Source: Capgemini Financial Services Analysis, 2018  As collaboration holds the key to success in the future payments ecosystem, APIs will link stakeholders to define digital strategies APIs Corporates Merchants Retail New Revenue Streams New Products and Service Propositions Higher Innovation Monetization of Data Enhanced Customer Experience Modular/Customized Services Banks
  7. 7. Payments Trends 2019 | November 2018 © 2018 Capgemini. All rights reserved. 7 Seamless integration of multiple payments channels to create an omnichannel experience Source: Capgemini Financial Services Analysis, 2018; World Payments Report 2018; As merchants move to omnichannel payments processing, they can drive significant efficiencies, enhance sales productivity, and boost overall customer satisfaction. 50- 300% Omnichannel shoppers spend between 50-300% more than single-channel shoppers. 1.83 bn The number of customers using voice assistants is estimated to reach 1.83 billion by 2021
  8. 8. Payments Trends 2019 | November 2018 © 2018 Capgemini. All rights reserved. 8 Payments incumbents consider ‘platform-as-a-service’ to improve efficiency, spur new business Source: Capgemini Financial Services Analysis, 2018 Platformification could give payments incumbents greater network reach and a strong foundation for success in the post open banking era Create customer-centric solutions New business propositions CloudNativePlatformand Microservices
  9. 9. Payments Trends 2019 | November 2018 © 2018 Capgemini. All rights reserved. 9 Source: Capgemini Financial Services Analysis, 2018; https://www.instapay.today/insight/instant-payments-taking-the-reins Instant cross-border payments gain traction alongside the increased adoption of ISO 20022 standards Pan European SCT inst, the first cross-border instant payments scheme launched in 2017 Malaysia, Thailand, Vietnam, Singapore, and Indonesia plan to connect their payment networks Under ASEAN 2025, member states are engaged in integration of their financial infrastructuresSWIFT’s gpi Currently more than 80 implementations across 40 markets areas ISO 20022 implementation, one of the initiatives to achieve interoperability has gained momentum Key Takeaways
  10. 10. Payments Trends 2019 | November 2018 © 2018 Capgemini. All rights reserved. 10 Source: Capgemini Financial Services Analysis, 2018 Payments stakeholders provide mobile wallets to deepen customer relationships Enabling Customer Centricity Enhanced Customer Experience Used for Enabling Contextual Commerce Integrated & In-app Payments Merchants and E-Commerce Firms Technology Firms Payment Firms Mobile Network Operators Payment industry stakeholders are adopting different strategies and approaches for implementing mobile wallets to enhance and secure customer experience
  11. 11. Payments Trends 2019 | November 2018 © 2018 Capgemini. All rights reserved. 11 Creation of an integrated financial ecosystem Voice assistants are giving rise to the possibility of a new channel BigTechs’ customer reach and user experience could emerge as threats to incumbents Source: Capgemini Financial Services Analysis, 2018; World Payments Report 2018; Key Drivers Challenges related to regulatory pressure might put incumbents at a disadvantage BigTechs are trusted by customers making them a credible threat to PSPs Banks might develop partnerships with BigTechs where value can be shared, including payments products that bring in more revenue to all parties.
  12. 12. With more than 190,000 people, Capgemini is present in over 40 countries and celebrates its 50th Anniversary year in 2017. A global leader in consulting, technology and outsourcing services, the Group reported 2016 global revenues of EUR 12.5 billion. Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model. About Capgemini Learn more about us at www.capgemini.com This message contains information that may be privileged or confidential and is the property of the Capgemini Group. Copyright © 2017 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini. This message is intended only for the person to whom it is addressed. If you are not the intended recipient, you are not authorized to read, print, retain, copy, disseminate, distribute, or use this message or any part thereof. If you receive this message in error, please notify the sender immediately and delete all copies of this message.

×