We closed out last year with five main trends to watch: Open APIs, Blockchain, IoT, Mobile Payments and Ecosystem. Let’s dig into what we said on each of these.
#OpenAPIs Banks go live with #PSD2 solutions ahead of schedule! Focus shifts to internal innovation and new product packaging and solutions.
Status: On Point: PSD2 is basically the topic du jour in Europe (when we remove politics from the conversation). I think the second half of this prediction is also looking to come to fruition, albeit less bullish than the go-live call. January 2018 will be here before you know it!
#Blockchain at the center of growing volume of international payments. YoY CAGR exceeds 500%. Investment in PoCs and alliances continues growth.
Status: Trending Green. I will say this about blockchain and distributed ledgers; they still grab headlines every time they are mentioned. While the luster has worn off slightly, the potential of this technology to bring massive change to our industry is still there. Now that the hype is dying down, I can’t wait to start seeing use cases in action and volumes begin to grow. For now, I am going to keep my prediction intact.
#IoT #connectedlifestyle Fraud concerns don’t allay adoption as payments via connected devices take off. Virtual Assistants, the new norm!
Status: Trending Yellow. IoT dominated the early part of the year with its strong showing at CES. The number of Amazon Echos and Google Assistants that are shipping monthly are staggering, however the acceptance by consumers of actually transacting on these devices is still in its infancy. For now, we are hearing a lot more inquiries about the weather than we are about making a purchase. I remain bullish on this, however, timescales may be slightly off.
#MobilePayments continue slow slog toward mass adoption; #OpenAPIs at center of growth through #mCommerce and in-app purchases.
Status: Trending Green. We are now over two full years post-Apple Pay launch and the mobile payments space is still waiting to take off like the rocket ship many of us expected. As I have said in the past, I think we put some unrealistic expectations on a technology that is so dependent on ubiquity and acceptance. The past two years has seen great growth in the Payments space and the focus from the tech giants and FIs alike make this an area that we all need to keep a watchful eye on because when this trend tips, it will tip hard. Maybe Europe will lead the way in their post-PSD2 world!
#Ecosystem Traditional competitors work together in sandbox to create net new payment value chain workflows with real time at the center.
Status: Too Early to Call. I’ll take a page out of the political watches handbook here. The New Payments Ecosystem is something to which we all need to pay the closest attention. Each of us (in the payments ecosystem) is entering a new world, be it post-PSD2, post-disruption, post-digital transformation or [insert another buzzy sounding term]. At the heart of this are the changes that are happening from the outside in, and the old business models that we have operated in will be unrecognizable. It’s both exhilarating and frightening, but no matter which way you look at it, opportunities abound.