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
Dumbing Down Payments and Fintech Jargon… Just in Time for the Holidays!
Mark, is there a slightly less insulting phrase for “dumbing down” something? I ask because there are some terms and topics making bigly waves today and many/most consumers outside of payments/banking/fintech/tech might not understand their significance and why they should care. With that, can we take a moment to simplify these terms and topics, while also conveying their importance to the masses—from your mother-in-law to your daughter’s daycare provider to “the old man sitting next to me making love to his tonic and gin” (I’m a sucker for Billy Joel).
The Art of Open Banking, Part 2: On the March
In the first part of my talk with @digitalbankguru (aka Mark Ranta) and @Lui_Zurawski (aka Lu Zurawski), we discussed plans that best prepare an organization for Open Banking, and in this second chapter, we explore some use cases for delivering value.
What Makes Latin America An Attractive Market for Cryptocurrencies? [¿Qué Hace a Latinoamérica un Mercado Atractivo para Las Criptomonedas?]
Cryptocurrencies are one of today’s hottest topics – seemingly in every corner of the globe. Bitcoin continues to be the most popular – and certainly the most well-known – though digital currencies have been blossoming at an unprecedented pace recently. There are currently more than 16 million Bitcoins in existence, and it is expected that there will be more than 22 million by 2022. Worldwide acceptance is growing, with over 9,800 businesses registered on the Coinmap website, compared to 2013 when there were only 133 businesses registered.
The Art of Open Banking, Part 1: Laying Plans
I recently had a great discussion with @digitalbankguru (aka Mark Ranta) and @Lui_Zurawski (aka Lu Zurawski) on what it takes to be ready for the revolution in Open Banking. It was a truly global discussion, with stories from North America, Europe and Asia; the conversation part philosophical treatise and part strategy roadmap. Following is a summary of the first part of our wide-ranging discussion on preparing for the Open Banking era.
How 'Mega Trends' Are Shaping Payments in India
In a previous blog post, I wrote about the impact of demonetization in India and the staggering growth of new digital payment types. Building further on this, I want explore some of the “mega trends” in payments, and how India is embracing the opportunities presented by these trends.
Bringing Home the Payments Bacon (And Other ‘Sizzles’ Such as PSD2, GDPR, AI and Big Data)
Mark, we’ve closed out another hectic Money20/20; my eyes are still dry; my throat is still sore; I still reek of cigarettes; I’ve eaten a lot of bacon on a stick (thanks to Zelle, a great group of people and a great partner)! So for the most part, this year’s event has been another win. And I haven’t even referenced the many terrific sessions during the week (well, I guess I just did).
In the Era of Open Banking, 'Positive Skeptics' Have a Crucial Role to Play
A skeptic is someone who habitually doubts commonly accepted beliefs. They are the naysayers, waiting in the wings to shoot down every great idea. But this does not mean that all skeptics are necessarily negative or cynical. In fact, positive skeptics play a vital role in our quest to modernize payments and banking, because they don’t automatically reject ideas. Instead of asking ‘why?’, they say ‘why not?’ They evaluate new ideas against the available evidence, instead of defaulting to ‘the way we have always done things’. They play devil’s advocate to innovate and create; a crucial role in an increasingly busy financial services marketplace.
One Year Later: How Demonetization Has Impacted India
This month marks the first anniversary of demonetization in India, and it has undoubtedly changed the country forever. When I visit India, I increasingly see micro-transactions conducted via mobile phones. Cash is still used, but I see less and less of it with each visit. We are in the middle of a true paradigm shift – and India is poised to become a global leader in new types of payment acceptance.
Three Ways to Build Your Business Case for Real-Time Payments
In the UK, faster payments are well established, and we have seen new innovations as well as new businesses being built since May 2008. In Singapore, which went live in 2014 with its Fast and Secure Transfers (FAST) scheme, we are starting to see similar innovations. And we can expect similar seismic shifts in payments innovation for years to come, as Instant Payment schemes in Europe and Real-Time Payments in the US go live, ubiquity increases and real-time payments become the new normal.
The Recipe for Instant Payments Success
How do you or can you realize instant payments? This is the question on everyone’s lips across the payments industry, and nowhere more so than in Europe, where the looming deadline for PSD2 (January 2018) has some scrambling to catch up. But how can payments players ensure success for their immediate payments plans within this short timeframe?