The overwhelming majority of banks, retailers and billing organisations worldwide are currently investing or planning to invest within the next two years into new payment technologies and infrastructure, a global survey by payments provider ACI and Ovum has revealed. Investment is driven by changing consumer behaviour as well as new market entrants threatening to disintermediate the existing payments supply chain. However, concerns over security as well as increasing choice and complexity are major hurdles when it comes to making investment choices, the research has found.
The four-part Global Payments Insight study surveyed more than 1,100 executives representing leading banks, retailers and billing organisations across the Americas, Asia-Pacific and EMEA and asked about experiences, perceptions and expectations of payments and how payments are shaping their behaviours today.
Gilles Ubaghs, Senior Analyst, Financial Services Technology, Ovum comments:
“The payments industry is in the midst of a rapid evolution. Where payments were traditionally given little attention up until a few years ago, the changes taking place just on a daily basis are significant, to say the least—from new providers to new platforms to new payment tools. As payments become smarter, this evolution has the power to transform the payments experience; and, as such, the needs, experiences and expectations of all of the players in the payments value chain are more critical than ever.”
Paul Thomalla, Senior Vice President, ACI Worldwide EMEA comments:
“The survey shows clearly that banks still play a major part in the payments ecosystem. The majority of consumers still trust banks as the key enablers and providers of payments. However, time is of essence. There are many new entrants waiting to get off the block. In order to emerge as winners in the new payments world banks must not only embrace new technologies. They must understand that the requirements and interactions with consumers and businesses are changing. New technology will only become a competitive advantage when it goes hand in hand with a change in culture at our high street banks.
“The findings also reveal that much of the focus today is on mobile and online payment capabilities, however, retailers and banks need to take a look at their core IT infrastructure and ask themselves if it will enable them to compete in this brave new payments world. Does it support all the things customers want today: Multi-channel shopping, mobile payment options, security, speed of transaction, the list goes on. In short, developing a holistic strategy when it comes to payments should be on top of the list.
“For banks, retailers and billers the key takeaway must be that the customer experience is the primary imperative and this will not change. All of these players must satisfy shifting consumer demand and enhance their payment capabilities. This means lowering payment costs, offering new service for free, and, most importantly, ensuring that security measures are being taken.”
This digital survey was conducted online to key payment decision makers globally from October - November 2014, providing a snapshot of payment perceptions among financial institutions, scheduled billing and payment taking organizations such as higher education, consumer finance and insurance, and merchant retailers.
Overall, this included a total 1,119 executive respondents across 15 industry sub verticals in 25 key global markets, resulting in over 144,000 separate data points on perceptions and expectations of payments among critical payment enablers globally.