A Rocky Mountain High on Payments Innovation
We were so high last week; in fact, we were a figurative mile high… in sunny Denver for our annual ACI Exchange user conference. And among the myriad highs during the week was our own ‘Un-conference,’ which generated major buzz that sparked an enormous appetite for some tasty innovation. Some of the ideas generated included the following:
- Cashless municipalities
- Federated identity
- Ubiquitous loyalty
- Biometric payments (you might recall my ill-fated ‘wink-pay’ example)
- Remote cash on delivery
- Customer controls
'Cash delivery by drone' - brought to life by Rabobank.
Let’s explore a few of these, and understanding that none is fully baked, let’s see which ones are (more) budding. I’m joined by a couple of my Rantings cohorts, including Mark and Lu, who led the Un-conference.
Dan Ring: Mark, I have 2 words for you: plastics…and cashless. But let’s talk about the latter.
Mark Ranta: Ahhh the cashless society, the utopian payments paradise city, where the grass is green…
DR: Mark, focus, Cashless.
MR: Right, cashless. We talk a lot about cashless and we look at this from a lot of angles, but what we constantly come back to is that cash is expensive for the system (counter to the way it is treated sometimes in the consumer market, where you can often find a discount for using the most expensive option for the system). The issue is how do you protect the most vulnerable in the system, the underbanked and unbanked who are often the most reliant upon cash or live a cash-centric lifestyle. It is hard to truly get over that hurdle without regulatory policy; however, the value and cost savings of moving to “cashless” as an ecosystem can likely offset the cost of bringing the unbanked and underbanked into the system!
DR: Lu, talk to me about Ubiquitous Loyalty and how it ties into Customer Controls (and in this case, we’re not referring to anything GDPR-related).
Lu Zurawski: Ubiquitous Loyalty essentially means that I, as the user, want control over any and all payment types and relationships with retailers—from how I use my card to maximizing my benefits, to defining which data I am willing to expose to third parties. It’s a shift from the traditional B2C model toward a Me2B perspective, where I am the focal point, not the business.
DR: You recently uttered a phrase that piqued my interest…. Cyclical Neophilia. What’s this about?
LZ: Cyclical Neophilia refers to the repeated belief of generations that we live in uniquely transformational times, where innovative new things are appearing faster than ever before. Arguably it is a clichéd conceit, but in the world of payments, it’s actually seems to be true.
DR: Mark, we had the pleasure of spending some time with the talented and innovative folks from Rabobank. Their real-world example of Remote Cash on Delivery [video] was not only fascinating, but truly enjoyable (and special thanks to Mart, Fred and Edwin). That said, I’m conflicted about delivery via drone… maybe it’s because I’m a grumpy Gen Xer. What are your thoughts on Remote (anything) on Delivery? When and where will it take off?
MR: The idea of remote delivery is one that has been and will continue to get attention as we solve for the elusive “last mile” of the consumer experience. I think pizza delivery by drone may not be something we see any time soon, and I don’t think it would be a stretch to say drone or “autonomous” delivery models will become more normal to all of us, both in remote locations or in dense suburbs. I do think that advancements in mobile payments may make our fun experimental idea less likely to make it mainstream, but the enthusiasm around the effort will 100% lead us to ideas that will.
DR: Thanks guys… and I also want to extend thanks to our many amazing customers who descended upon Denver last week… we look forward to more fun engagement throughout the year!
Read more about the Innovation Awards, presented during ACI Exchange 2018 to customers for innovative use of ACI's portfolio of leading payment solutions.
Related Blog Posts
Success Speaks: How Roanoke College Simplified Higher Education Billing and Commerce
Campus commerce has quickly become the ultimate test for payment software providers, IT professionals and administrators. Technology stacks and service offerings are continuously challenged by rapid innovation, just as budgets have begun to shrink. And to top it off, cybersecurity threats lurk around every corner, and even a single breach can destroy student confidence in their institution of higher learning.
Success Speaks: Exploring the Future of Payments Collections in Auto-Finance with SAFCO
When it comes to improving collections, there’s one simple question your organization should ask before embarking on any type of payments project: what does “customer service” mean to our customers?
Success Speaks: UC San Diego Health Transforms Bill Payments to Improve Patient Satisfaction
Primum non nocere, “first, do no harm,” is a Latin maxim that serves as a fundamental principle of the medical community. Essentially, the phrase states that in some cases, it may be better to do nothing than to intervene. For UC San Diego Health, however, intervention was necessary to transform their billing and deliver an improved payments experience for their patients.
Instant and Digital: The Next Frontier of Bill Payment
We’d all like an inexpensive, simple and consolidated way to pay our bills, and we’re seeing a growing list of upstarts entering the market to meet this need. Customer interaction during the billing process is a critical touchpoint to maintain relationships and potentially enhance the customer experience, but third-party solutions that offer enhanced ease of use could get in the way. Companies need to respond with an engaging bill pay offering, which includes real-time payments.
Success Speaks: Blue Cross Blue Shield of Michigan Talks Meeting Member Demands in Healthcare
When looking for a payments success story in the world of healthcare, you’d be wise to turn your attention to the Great Lakes and the work done by Blue Cross Blue Shield of Michigan (BCBS MI). In a recent webinar with AHIP (America’s Health Insurance Plans) and ACI, Faran Farooqi, Strategic Capability Implementation and Operations for Blue Cross Blue Shield of Michigan, shared his insights into how his organization addressed the challenges of today to deliver a great payments experience for their members.
The 12 Biggest Security Threats to Payments
Consumers ask a lot of you in terms of convenience, speed and, above all, security. This puts the pressure on you to offer a pain-free consumer experience that is also highly secure. And when you accept payments, you need to secure all parts of your organization. Here’s an actual example: one major breach occurred when an air conditioning vendor was hacked, allowing hackers to access the corporate network and finally the point of sale network. This highlights the importance of understanding the threat landscape we face today.
High Incidence of Payments Data Theft is Driving Investment in Payments Technology
One in five organizations has experienced payments data theft over the last 12 months per new benchmark data, “2018 Global Payments Insight Survey: Bill Pay Services,” from Ovum.
4 Reasons Why You Must Future Proof Your Technology
What does future proofing your technology mean? In my view, it means preparing your bank to deliver the best customer experience possible--today and tomorrow. Research from Greenwich Associates indicates that the customer experience and ease of doing business are key drivers of loyalty. Extracting value from your technology investments so you can provide a superior customer experience is not only important because of the impact on service, but also on loyalty.
I want to focus on 4 reasons why future proofing your technology is important. These insights are a sneak preview into some of the findings from our upcoming whitepaper produced with Ovum, the annual Global Payment Insight Series.
A Master Class in Convenience: Faster Payments for Higher Education
Paying for college can be a real pain, and the act of paying tuition itself has not kept up to speed with the times.
According to Aite Group, 40% of tuition payments are made by ACH (electronic check), making it the most popular method of payment for higher education. Yet, these payments can sometimes take several days to process. In a world where college students send and receive over 120 text messages per day, immediacy is key. Especially when large dollar amounts are being spent. Students and parents demand that payment options conform to their expectations of speed, to prevent their accounts from being overdrawn.
A Prescription for Profitability: Real-Time Payments Come to Healthcare
When it comes to important numbers in the healthcare sector, you’re probably familiar with 120/80 (that’s ideal blood pressure for the non-medically inclined), but I’d like to introduce you to two more numbers: 15 and 47.
15 is the percentage of healthcare spending due to billing and payment inefficiencies, while 47 is the percentage of patients who would leave a hospital for a better payment experience1.