How Will Governments Make Payment Services Simple?
Government payment services of the future will make their citizens happier. They will free up new funds for community investment. Simplicity will reign. The key - reducing the middlemen.
Hollywood gives us an example. What’s your favorite movie quote? “What would you say you do here?” from Office Space has to be one of mine. Tom explains to the consultants that he’s the middleman who takes the specifications from customers to the engineers. It is obvious Tom does not add any value being in the middle.
Trader Joe’s grocery store removes the middlemen to deliver tasty food at an affordable cost*. When we moved to another town, the first thing we researched was the location of the closest Trader Joe’s. It’s that remarkable!
Middlemen crowd today’s government payment processing
Multiple fee collectors or middlemen stand in between your government and your citizens’ bank accounts. Like toll booths on a toll road, the card networks and merchant acquirers increase the cost of payments and slow down the movement of money.
Reducing fee collectors is industry’s #1 desire
Governments are evaluating connecting directly to banks to eliminate the fee collectors in the middle according to our new survey exploring government payment services. In fact, reducing fee collectors ranks higher than mobile payments in priority!
Benefits of removing middlemen from government payment processing
- Make citizens smile. 62% of consumers demand faster payments than today’s payment networks deliver, according to Mercator Advisory Group. Removing the middlemen will enable faster money movement.
- Save money on payment processing. Invest more in the community. Reducing multiple fee collectors from the payments process will lower the cost of accepting card payments.
- Tighten security. Citizens’ sensitive banking information will travel through fewer parties. Criminals will have less chances to steal it!
Your peers’ plan to simplify payments. As governments begin updating their strategic plans for 2016, will you embrace simplicity?
*Source: CBS News
Related Blog Posts
Could COVID-19 Be India’s Cashless Catalyst?
India’s push towards a digital economy has accelerated over the years, with a supportive regulatory environment, home-grown technologies and innovation around digital infrastructure improving “last mile” connectivity to the remote towns and rural areas of the country. While the “Digital India” drive has been consistent, the COVID-19 pandemic has brought out the true value of digitization for businesses and consumers alike. It is a watershed moment and has fast-tracked the pace of digital adoption, particularly for payments, which now plays a critical role in economic recovery.
The Nordics’ P27 Initiative: Payments in Uncharted Waters
The advance of real-time payments around the world seems unstoppable, with 45 schemes currently live and a further 13 (at the time of writing) in the planning stages. In Europe, the Nordics’ P27 initiative – the world’s first integrated multi-country, multi-currency, real-time payments platform spanning Denmark, Finland, Sweden and Norway – promises to make headlines as it takes payments into uncharted waters.
The Pandemic Has Accelerated the New Era of Acquiring
The COVID-19 pandemic has accelerated many trends already taking shape in consumer purchasing behavior. Almost overnight, routine activities ranging from picking up groceries to buying gas unexpectedly became something that they had never been before – risky.
How Southeast Asia’s Banks Can Remain Competitive and Profitable in a Real-Time World
Cross-border payments across Southeast Asia are shifting as market dynamics, increased competition and increasingly demanding customers drive rapid change. As payment systems are modernized and the market evolves, banks and governments must stay on top of these trends.
The Benefits of Open Banking for LATAM
Thanks to customer demand and regulations on how customer data can be gathered and used, open banking has seen rapid growth throughout the world. The EU and U.K. have been leading forces in the implementation of open banking, while countries such as Canada, New Zealand, Hong Kong and Japan have been quick adopters.
How National Central Infrastructure Initiatives for Real-time Payments Create Immediate Business Opportunities for Merchants
More and more countries and regional alliances are investing in the creation of new financial market infrastructures. Governments and leaders of central banks have decided that the finance industry needs investment to be fit for the demands of digital economies, suitable for the trailblazing businesses of the fourth industrial revolution.
Payments Modernization in the Cloud: An Inflection Point in the History of Payments
Public cloud is one of the big buzzwords in payments right now. While a few years ago financial institutions were reluctant to embrace the technology, they are now among the most likely to do so. ACI discussed the topic of Payments Modernization in the Cloud during a recent webinar, moderated by Finextra’s Head of Research Gary Wright. Katrin Boettger caught up with the panellists — Ciaran Chu, head of cloud at ACI; Peter Hazou, business strategy leader at Microsoft and Lu Zurawski, practice lead, retail banking at ACI — about why the COVID-19 pandemic might be a further catalyst for the worldwide adoption of cloud technology.
Brazil’s Digital Payments Transformation: Five Key Takeaways
Brazil has abundant growth opportunity when it comes to digital payments, with PIX – the Central Bank of Brazil’s new instant payments system – expected to have a significant impact. This was evident during a recent webinar Digital Transformation into Payments, hosted by Mercado & Consumo em Alerta and featuring experts from Getnet, Pernambucanas, Conductor and ACI.
Southeast Asia’s Domestic Payments Infrastructure Has Laid the Foundation for a Cross-Border Real-Time Network
Over the past decade, economies across Asia have been on the path to payments modernization, upgrading and replacing domestic payments infrastructure to make payments cheaper, faster and better. While the focus has been on domestic gains, this has set the foundation for a broader, cross-border real-time network – especially in Southeast Asia.
From "Access to Cash" to "Access to Digital" – How Innovative Thinking Is Keeping SMEs Trading
With millions of people in London and the wider U.K. having endured lockdowns and restrictions, the COVID-19 pandemic has had a massive impact on our shopping habits. While some supermarkets have struggled to keep up with customer demand and social distancing rules, many small, local business have adapted to the crisis quickly, efficiently and in innovative ways. While supermarkets have run out of delivery slots, smaller businesses are now offering local deliveries whilst providing safe digital payments options. They are also selling goods that the big supermarkets have run out of because traditional supply chains have been interrupted.