BFC Bulletins Monthly News Digest
Tags Customer Experience Cybersecurity Payments Startups
The way people make payments is changing faster than any area of financial services, and understanding trends in payments is important for any financial institution wanting to serve the complete financial needs of consumers. Here are the top 10 trends impacting the future of payments:
- Growing impact of GenZ — this generation demands immediate and highly-personalized experiences. Almost 70% of the GenZ uses mobile banking apps daily, with 68% wanting instant P2P payment options.
- Customer experience as a differentiator — consumers want an easier way to shop and make purchases on their mobile device.
- Acceptance of mobile payments — Younger consumers are demanding an exceptional digital payment experience and want to be compensated through targeted rewards, offers and discounts.
- Restructure rewards — consumers not only want simplicity in earning rewards, they want simple ways to redeem these rewards (preferably at the point of sale).
- Expanded payment networks — instead of independent P2P solutions, collaborations provide more consumer benefits than could be possible with a proprietary network.
- FinTech collaboration — better positioned to create new consumer-focused digital solutions, agile FinTech firms are the perfect partners for legacy financial service organizations who need to become more responsive to digital consumers.
- From cards to code — eventually, the power of code will overtake the purpose of plastic cards. Payment credentials will become virtual; it’s only a matter of time.
- Payments everywhere — today’s payment industry is quickly being dominated by organizations that allow payments to be made between people (P2P), between people and businesses (P2B) or between businesses (B2B). Eventually, everyone will be able to make and accept payments when and where they like.
- Increasing importance of security — the industry must out-innovate fraudsters. This may take the form of new biometric security features or may include enhanced behind-the-scene features that do not impact the consumer experience.
- Replaced infrastructure — replacing outdated payment infrastructure will be required to compete in the future. Systems in the future will be open and flexible in design, with the ability to adjust to rapid changes in the industry.
