Time is Money: A Millennial View of UK Faster Payments’ 10th Anniversary
As a millennial, I’ve often been the butt of jokes of those a little bit older than I am (whether colleagues or my own family). One of the clichés perpetuated is that we are constantly glued to our smartphones: In a way that’s correct, but misses an important point. As a young millennial professional, the most important thing to me is TIME. And that’s the reason my phone plays a crucial role in my life – much to the annoyance of my girlfriend and family. It means I can do things on the move, which in turn makes my life a whole lot easier.
Take this this example: Recently I landed in Miami (for a two-week multi-city trip) only to be notified that I could get travel insurance for 99p a day, which was undeniably handy as I had forgotten to get it before I left… and I was due to spend time with Mark and Dan, two colleagues and high risk companions!
Navigating a busy life with Faster Payments
I have been familiar with Faster Payments ever since I entered the UK workforce about 10 years ago, and have been able to move money around on a regular basis (The UK Faster Payments scheme celebrates its 10th anniversary this year). Faster Payments allow me to navigate a busy life, or at least my poor planning. There’s nothing worse than having to scrabble through your football kit to try and find the coins to pay for your five-a-side or route through your golf stuff to pay your portion of the round. Or going out for dinner with friends only to discover the restaurant only takes cash.
Faster Payments, and related new services like Zapp or Pingit, mean I can get on with the things I enjoy and want to spend time on, as opposed to wondering whether the money I put in my bag has vanished (normally my girlfriend has needed it, and taken it upon herself to remove it… but that’s another story).
As a consumer and millennial who happens to work in payments, I still think there’s a significant amount of progress still to be made. The real impact of Faster Payments is just starting to be felt and I’m looking forward to the next ten years.
Here are my top four areas that need sorting out (in my humble millennial opinion):
Loyalty is one of the key areas that will benefit from the proliferation of real-time payments. As immediate payments are cheaper, I would expect the savings businesses make to be passed onto me, the consumer. I would like to see tailored offers from retailers with whom I frequently spend money, encouraging me to spend even more money (spoiler alert: I have a phone and I would love to receive push notifications for offers on goods using beacons).
Faster Payments coupled with Open Banking
The fact that faster payments coupled with Open Banking will enable new third-party providers to enter the market can only be a good thing for consumers. Our digital identity will be at the heart of such new services, which over time could fundamentally change the relationship between consumers, banks and new services providers. I am excited about some of the services that have already been launched, whether it’s the NatWest payment by account service or the HSBC app, and I look forward to what’s coming next.
The Internet of Things (IoT) and Faster Payments go hand in hand
Likewise, with the rise of the IoT, I expect to be able to remove the need to spend time traipsing down to the shops or going online to buy food (we ran out of ketchup on Saturday – there was a mutiny in the house, which was compounded when the supermarket took it upon themselves to substitute the brand we requested).
Security is still a top issue
Another issue I expect to be resolved in the coming years is the friction of making immediate payments in a face-to-face environment. For example, some UK retailers are offering immediate payment capabilities, but at present, the cashiers are still in learning mode, which slows down the process.
I expect this to be sorted in the coming years through better education of consumers and by further enhancement of mobile phone technology. For example, facial recognition could play a much bigger role in the ‘age of the selfie’ generation and I think blinking at your phone is quicker than getting out your loyalty card and swiping it and then putting in your pin at a payment terminal. Security has long been a challenge when it comes to immediate payments, but I believe that facial technology will play a big role in solving that issue.
So, there we go, faster payments have come a long way since they were first introduced in the UK a decade ago, but we should be even more excited about the next 5-10 years as faster payments will help me to turn up to dinner on time.
Related Blog Posts
The Challenge of Catering to the Anything, Anywhere, Anytime Retail Shopper
Ten years ago, retail eCommerce was a fairly simple provision; most retailers’ websites offered a small range of products with long lead times, local delivery and postal returns. Payments were mostly completed by card in the local currency, and the online customer experience was less than slick.
German Gamers Present Conversion Challenges for Game Publishers
The gaming sector is booming – it's the perfect time to delve into some of the current trends in gaming that are revealed in our latest benchmark survey with Newzoo – and a chance to look at what sets German gamers apart.
Positive Profiling Makes Everyone a Winner in Gaming
Online gaming is one of the fastest-growing segments within the broader entertainment industry. With 2 billion active gamers worldwide and 200 million people playing games on social networking sites at least once a day, it is no surprise that the market is now worth well over USD $100 billion per year.
Top Tips to Battle Payments Fraud in Gaming—From a Millennial Gamer
The gaming industry, from a consumer point of view, has evolved dramatically over the last 5-10 years. The buying process has rapidly changed from a one-time, final payment – often at a physical store for a physical product – to a series of never ending bundles, boosters, skins, downloadable content and in-game currency sales!
Payments in Gaming: The Female Gamer Powers-Up
The global games market is booming, with revenues set to reach USD $137.9 billion by 2021. But along with the growth, gaming is also transforming and diversifying; in genre, gaming devices, platforms, economics and demographics. Notably, female gamers are ‘powering up’ – representing 40% of paying gamers across all platforms – and there are implications for how gaming companies deliver their products and the role of payments in the overall customer experience.
Could Blockchain and Cryptocurrencies Revolutionize Payments in the Gaming Sector? [Q&A]
ACI recently partnered with Nextpayway, a company offering a specialist payment solution for the gaming industry. The Israeli start-up is implementing ACI’s UP eCommerce Payments solution to deliver next-generation payments and fraud prevention. We spoke with Nextpayway’s CEO Angela Behar just after the GES World Gaming Summit in Barcelona.
Pints, Penalties and Payment Fraud: Welcome to the World Cup
You’d think that England already had the World Cup in the bag, based on the nationwide scenes of jubilation after the Three Lions’ penalty-takers had gone against the (painful) grain of football history, and emerged victorious at the end of a scrappy match against Colombia. However, those cries of “It’s Coming Home” from English football fans may just be a little premature, given that there are still three matches to play (and win) before the English can lay claim to being world champions for the first time in half a century.
Innovate and Integrate to Accumulate: Investing in Payments Systems to Drive Growth
Today’s merchants face numerous challenges, which boil down to one central issue: how to succeed in a constantly changing, complex market, while also investing for the future.
Merchants need to deliver on growing expectations around the customer experience in an increasingly competitive environment, while battling growing costs and squeezed margins. This pressure extends through the whole business for every merchant, in every sector, and it’s driving merchants to look into every corner of their operations for ways to cut costs and redirect resources.
Choice and Flexibility Help Digital Entertainment Merchants Catch Their Customers
Gaming and Digital Entertainment is one of the fastest growing verticals within the broader merchant sector, as boundaries continue to blur. Many forms of entertainment that once only took place in the physical world, or through the purchase of physical goods, have gone fully digital – with significant ramifications for businesses that provide payments services to suit a wide range of merchant needs. I spoke with Andy McDonald, ACI’s vice president of merchant payments, to find out more.
The Telco Transformation Tight Rope: Balancing Risk and Reward
In a previous blog post, we looked at the towering mobile payments opportunity for those MNOs and MVNOs that can build customer trust and convenience through innovation to become a digital marketplace.
But, it is safe to say that while the digital marketplace model could be a real opportunity for telcos, taking this route is not without some risk.