Payments Buzzwords Bingo: Mid-Year Report Card
Summer is in the air (and it’s 95 degrees this week!!). As we move properly into ‘flip-flops and shorts’ season in the North East, it’s about that time to check in on our annual calls from the New Year (and begin to look forward to counting down to the next set of predictions). Hard to believe that 2017’s Christmas is now closer than 2016’s, but so goes time, and nobody can slow that down. So without further ado I give to you… the mid-year trends update!
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.
Related blog posts
Filtering the Fraudster
In our new Insight Paper, we focus on how merchants can build an effective fraud filter for their sales funnel – one that is not over-restrictive, leads to genuine sales being accepted, and prevents genuine fraud. Get the balance right and merchants stand to improve their checkout conversion rates and boost their bottom line.
Stop Fraud… Or Increase Conversion Rates? With a Fine-Tuned Fraud Engine, Merchants Can Do Both
Preventing fraud and driving high conversion rates are universally important objectives for merchants – but many struggle to adequately balance these two demands. They either employ aggressive fraud prevention strategies to minimize fraud losses, or conversely, reduce checks in order to prevent false positives, improve customer experience and ensure sales targets are met. Neither exclusive approach works in the long run; focusing on only one will prove costly on multiple fronts.
ETA TRANSACT: Time To Break Out… And Cross Borders To Reach New Customers
It’s before lunch on day one of ETA Transact17 in Las Vegas; exhibitors are still putting the finishing touches on their stands in the main hall, so it’s the perfect opportunity to sit in on some of the breakout sessions, part of the educational program put on by the Electronic Transactions Association. And ‘breakout session’ seems particularly apt in this case, as panelists from ACI Worldwide, Planet Payment, and arvato launch into a discussion on how merchants and payment providers can ‘break out’ of their domestic markets and take advantage of the huge opportunity in cross-border eCommerce.
Rise Of The Machine Learning and Fraud Prevention
Machine learning, as a sub-discipline within computer science, is primarily concerned with the discovery of patterns in data through algorithms that can learn from and make predictions on that data. These algorithms operate by building a model based on example inputs, which can then make data-driven predictions or decisions. So what, exactly, does this have to do with beating fraud in the real world?
Peak Trading Is About More Than Black Friday And Cyber Monday
Many merchants will have now experienced their biggest single trading day of the year, either Black Friday or Cyber Monday, and alongside these peak trading days have focused their efforts on effective fraud managements and delivering a seamless and secure checkout experience. However, this is not universally the peak for all merchants.
Six Steps To Optimizing Fraud Management During Peak Trading
A well planned and thought out fraud management strategy can increase revenue by more than 20 percent, so with the holiday shopping season – including traditional peak days Black Friday and Cyber Monday – we encourage merchants to consider the following practical steps in order to maximize their success.
Holiday Retail eCommerce Sales Promise Growth But Fraudulent Activity Also Rising
There is no question that peak trading days provide major revenue opportunities for eCommerce merchants. Amazon UK is reported to have sold around 86 items per second on Black Friday in 2015, and total U.S. online sales (across merchants) on Cyber Monday rose 16 percent from the previous year, to $3.07 billion.
Risky Business? Open Invoice Payments In Germany
PayProtect is used by merchants and payment service providers to manage the risk around 'purchase on account' – a payment method that is a must when operating in the large German eCommerce marketplace. Jens Kühle, MD of GPP, a company of the GFKL-Lowell Group, sat down with us to explain the specifics of eCommerce risk management in the German market.
Detecting Internal Fraud by ‘Breaking Bad’
There has been no shortage of news stories around the banking industry and its vulnerability to internal fraud, particularly that the industry has limited internal surveillance. Internal fraud has proven to be news-driven (and news-worthy); it’s a great feature lead-in story and scintillating red-meat for mass consumption. Internal fraud events are obviously a reputational risk for banks, but then take a huge turn into regulatory risk territory, before winding up squarely a legal risk (and the headline-grabbing fines that come with it). Finally, a strategic and market risk bubble up as customers are lost to competitors.
Rio 2016 – Once the Games Are Over, It Doesn’t Mean Fraud Is Over
The 2016 Rio Games are in full swing—with great story lines and unbelievable performances by incredible athletes, all being watched and admired by a million additional tourists in town (not to mention the many billions watching on TVs and computer screens).