• Bertrand Knopf, Executive Vice President, Banking and Payment Business Unit at Gemalto, a Thales company


• 24.07.2024 02:45 pm
#payments #transformation

Wherever you look – the way consumers approach banking and payments has shifted. Trends that were already in motion before 2020 were accelerated further by the pandemic. Consumers are increasingly adopting digital wallets, contactless payments, and online banking, spurred by convenience and the rise of e-commerce.

As such, the global payments industry is experiencing unprecedented growth, driven by these changes in tandem with advancements in technology. According to a report by McKinsey & Company, global payments revenue is expected to reach $2.5 trillion by 2025, with digital payments accounting for a significant portion of this growth. 

This shift requires financial institutions and retailers adapt quickly to meet new consumer expectations. Under this environment, modern card programs have emerged and are  revolutionizing both in-person and online transactions. The transformation towards innovative, responsible, inclusive payment solutions is essential for building a future defined by trust, convenience and a better access to payment services for all.

Addressing Customer Needs

For today's discerning customers, ‘payment solutions’ extend beyond mere transactional tools. They encompass an experience that is trustworthy, controllable, sustainable, inclusive and satisfying. Understanding the complexities of operational efficiency, scalability, regulatory compliance, and more, is crucial to ensure a seamless and customer-centric digital transformation.

Financial institutions, fintech companies, issuing processors, wallet providers, private labels, and retailers can benefit from expert guidance through a seamless digital transformation, ensuring minimal disruption to their loyal customers. 

Key Capabilities of Modern Payment Solutions

1. Endless Flexibility: Empower customers with seamless, frictionless payment options, enabling them to pay how they want, when they want. The demand for flexible payment solutions is growing, with 73% of consumers expecting businesses to offer multiple payment options, according to a study by Deloitte.

2. Digital Dynamism: Equip customers with real-time insights and cutting-edge technology, delivering a modern, innovative, and future-proof payment experience. The ability to offer personalized payment experiences is a competitive differentiator, with Accenture reporting that 91% of consumers are more likely to shop with brands that provide relevant offers and recommendations.

3. Rock-Solid Reliability: Build and maintain trust with secure, reliable digital and physical payment experiences, providing customers with peace of mind. Cybersecurity remains a top concern, as a survey by PwC revealed that 69% of consumers believe companies should be responsible for protecting their data.

4. Positive Empowerment: Lead with sustainability and inclusivity, crafting payment solutions that align with environmental and social goals. This is not just what customers deserve, but what the planet requires. A Nielsen report highlighted that 81% of global consumers feel strongly that companies should help improve the environment.

The Path Forward

Successful transformations in the digital card journeys of clients worldwide have laid a robust foundation for the future of modern card programs. A crucial insight from this extensive experience is the necessity of proactivity in an industry where innovation renders reactivity obsolete.

The commitment is to agility and forward-thinking solutions, keeping businesses ahead in the fast-paced world of payments. The recipe for success includes:

• Eco-friendly products and services

• Inclusive payment solutions

• Real-time, secure services accessible via mobile and web channels

• Proactive compliance with evolving regulations and security standards

• Staying ahead of competition through continuous innovation

Enhancing customer trust and loyalty with cutting-edge payment solutions is the key to becoming the hero your customers need. As the market continues to evolve, staying informed and proactive will ensure that businesses can meet and exceed the expectations of their customers. 

Thales accompanies more than 3500 financial institutions worldwide in their digital transformation. More info here.