How to Deliver on Customer Experience in a Digital Payments Era
Don’t Break the Bank – Building for the New Payments Ecosystem.
The foundations of payments systems are scalability, availability, and reliability. Without these, we cannot layer additional functionality onto the core services. This is crucial in the New Payments Ecosystem, where the customer expects seamless, fast, and effective payments integrated into the buying experience, not to mention the ability to make a payment anytime, anywhere—that it “just happens”, securely. The customer sees the value in the overall experience; how quick and easy is it to buy those sunglasses, pay that bill, or tap into the train? And in a rapidly diversifying payments ecosystem, the latest question is; how easy is it for me to manage all my payments?
The Internet of Paying Things
Developments such as the Internet of Things (IoT) and PSD2’s request to pay mean that managing ongoing authorisations for Payment Service Providers or ‘things’ to action payments on your behalf is fast becoming reality for the consumer. This expansion of the initiation of a payment is now a significant driver for payments players to deliver an enhanced end-user payment experience. 87% of global retail banks cite reducing payment friction as “the most important product-level priority,” with an even higher percentage of banks in Asia (90%) focusing in on this strategy.
It’s not just about enabling those new payment or messaging types; it’s about preparing for the inevitable digital payments explosion. In an IoT era, there will be more payment-enabled devices, and more of those devices will be making micro payments. These two factors combined will serve to boost non-cash payment volumes even further. Payments providers need to be able to scale to the Internet of Paying Things.
Customer Experience Without Compromise
But how can we achieve an end-user payment experience worthy of the New Payments Ecosystem without breaking the proverbial bank at its foundations? A large part of the answer lies in augmenting existing infrastructure; investing and preparing your business for the new fast, open ecosystem without compromising on those foundations, or security. Banks say improving infrastructures (93%), and security (88%) are key drivers behind their additional payments investment. It’s critical to understand that scalability, availability and reliability, and security underpin every new payments experience. As the industry looks to develop new services to delight customers, it cannot disappoint on the basics.
Don’t break the Bank, Don’t Break the Payments Chain!
To learn more about #SleepAtNightability watch our new video now featured on our new payments ecosystem webpage.
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).
What Do Open APIs Mean for Banking Business Models? PSD2 Points of View
As the January 2018 deadline creeps closer, PSD2 – and by association instant payments and open banking – is the hot topic in the payments industry. The impact of PSD2 will be felt beyond Europe’s physical borders, as it brings open banking to the fore. As with any global issue, ideas around how best to address the challenges of open banking are fragmented, and opinions differ between retail and corporate banking.
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.
Security, the New Payments Ecosystem and the Need to Educate the Consumer (Or Ask Them to Unclog Your Sewer!)
When it comes to any payments ecosystem, you must remember that we are talking about MONEY. More importantly, people’s money (like yours and mine). In any conversation in this space, secure is something that is assumed. A consumer simply won’t use a new system if they don’t believe it is secure. Unless of course it’s free Wi-Fi. As we have seen, folks are willing to do almost anything to get free access on their devices, even agreeing to clean toilets! (This was a real thing… one hotspot operator added it to their Terms of Service fine print). When we talk secure, it’s important that we keep this in mind: secure is not just a piece of the Hierarchy of Payment Needs, it’s an integral part of it, which is why it sits directly on top of the foundations. Without this layer, the whole ecosystem collapses.