Telcos Must Walk Before They Run When It Comes to Mobile Payments Innovation
The mobile payments market is growing fast, fueled by technological innovation and consumer demand. With each consumer predicted to own, on average, nine connected devices by 2021, there is no doubt that we can expect to see an exponential rise in the number of devices and applications used to make mobile payments over the coming years.
In a previous blog post, we outlined how MNOs and MVNOs can connect to this huge mobile payments opportunity. We floated the idea that telcos can find their way forward in this connected-consumer era as a hub for the digital marketplace; or an integrator for devices, applications, methods of mobile payments and customer identity management. With the growth of IoT (Internet of Things) and the huge range of new market entrants appearing on a seemingly daily basis, the market needs an aggregator – and telcos certainly have the technology know-how, as well as the customer relationships to become that aggregator.
Innovation: the route to telco transformation
To achieve this, it is important for telcos to change the way they position themselves with customers by adding more value through additional services, connections and payment means.
But, there is a danger that getting these innovations wrong – either through poor delivery or by taking the wrong road – could jeopardize vital customer relationships. Consumers, generally, are not looking for innovation for innovation’s sake: they are looking for simplicity, ease of use, security and accessibility – all things which help make their lives easier, save time on daily tasks and fit with their fast-moving lifestyles.
Gimmicks are all very well, but without the substance that consumers want, flashy new tricks don’t live long and could end up being expensive mistakes. What telcos must do is identify the ‘must-haves’ for their customers and make those the cornerstones of their innovation process, ensuring a stable foundation for their transformation path.
Maximizing trust and convenience to protect the customer experience
Between filling a shopping basket and clicking the “pay” button, 58% of consumers change their mind. The main causes include the time it takes to enter personal and payment details, being redirected to pay on another page, or concerns about data security. In essence, it boils down to a lack of convenience and a lack of trust – two issues which consumer surveys highlight time and again as being paramount to the customer experience.
Mobile payments themselves are gaining in popularity with consumers, exactly because they offer greater convenience and security. Supporting these two key pillars of customer experience is where telcos must focus their initial investment in innovation. And what’s more – these areas are the ones that they are best placed to support.
Shoppers feel more secure when they do not have to input their personal or financial data with multiple merchants, and when they are actively assured of the security measures put in place. Telcos are in a prime position to instill confidence and loyalty by providing choice around payment and security options, such as the ability to use biometric facilities and stored alternative payment methods.
Moving from theory to practice
The recent insight series from ACI and telco industry experts Red Dawn explores how MNOs and MNVOs can use their capabilities to support innovations that are personalized, seamless, secure and loyalty-enhancing – keeping consumer trust and convenience front and center.
The papers discuss the processes and features telcos should focus on delivering, and examines real-life examples of some of these innovations in practice, along with the benefits they can deliver.
Sign up to receive your copy of the complete insight series: www.aciworldwide.com/telco
Related Blog Posts
The EMV Deadline Has Been Extended for U.S. Fuel Merchants – Now What?
U.S. fuel stations were originally supposed to be EMV-compliant by October 2017, but due to complications and costs at the time, the deadline for EMV at the pump was extended for three years – and it has now been pushed out further to April 2021 due to the COVID-19 pandemic.
Merchant Fraud in the Age of COVID-19: We Need to Prepare Ourselves for a “Tidal Wave” of Attacks
With millions of consumers around the world self-quarantining at home, online shopping for goods, services and entertainment has become the new normal for many. A recent analysis of our own data has shown that average transaction volumes in the retail sector in March rose 74 percent compared to the same period last year.
Global Fraud Landscape Evolving Quicker Than Ever – What Banks Need to Know
In the fraud prevention and cybercrime world, we often talk about fraudsters as the ultimate opportunists – looking for any weakness in a system that can be exploited. In recent years, as technological systems have advanced, fraudsters have increasingly turned to ”social engineering” to achieve their goals. Basically, hacking the person rather than hacking the system, as humans become the weakest link in the chain.
Predicciones de fraude para el 2020: Qué esperar con la rápida evolución del panorama de pagos en América Latina
La industria de pagos en América Latina está experimentando diversos cambios en varios segmentos a medida que la población de la región está cada vez más bancarizada y comienza a usar pagos electrónicos. Aunque el efectivo sigue siendo la forma de pago dominante, los gobiernos han impulsado los pagos electrónicos a través de la regulación. Esto ha asegurado que la aceptación y el crecimiento del pago con tarjeta hayan aumentado constantemente, han aparecido bancos digitales en diferentes países y el comercio electrónico ha aumentado significativamente.
Previsões para fraudes em 2020: O que esperar com o cenário de pagamentos em rápida evolução na América Latina
As violações de dados que envolvem dados de pagamento dobraram no ano passado por várias razões - falta de inovação em segurança, prioridades corporativas equivocadas e fraquezas nos portais de desenvolvedores, para citar alguns.
9 Holiday Preparedness Tips to Stay Protected from Fraud in 2019
The hustle and bustle of the holiday season often makes it difficult to prioritize consumer safety, especially when it comes to eCommerce and mobile devices. But with the growing threat of identity theft and other security concerns, it’s more important than ever to stay on top of consumer protection. After all, brand reputation and trust can take years to build, but all can be lost in a matter of minutes.
How to Survive Black Friday and Cyber Monday… and Provide a Great Consumer Experience
As Black Friday and Cyber Monday approach, shoppers and merchants alike await amazing deals and a welcome boost in sales, respectively. I took a moment to speak with two of ACI’s merchant payments and fraud experts, Andrew Marshman (merchant payments lead, Europe) and Erika Dietrich (VP, Global Fraud Prevention Risk Services) about what merchants need to know as they head forth into one of the biggest shopping seasons of the year.
Strong Customer Authentication in Australia: Reducing CNP Fraud and Streamlining eCommerce Payments
Minimizing fraud without harming the customer experience can be done – using the right tools
In 2017-18, card-not-present (CNP) fraud cost Australian eCommerce AUD $478 million and accounted for some 85 percent of all fraud on Australian-issued cards1. In 2016, CNP fraud in Europe represented 70% of all card fraud2. Seriously uncomfortable numbers.
2020 Fraud Predictions: What to Expect Across the Globe as Cybercrime Evolves
Our payment experts take stock of the trends that shaped 2019 and make their predictions for where they see the industry heading in 2020.
I sat down with our own fraud experts, Marc Trepanier, principal fraud consultant for North America, and Giselle Lindley, principal fraud consultant for APAC, to get their thoughts on what we can expect in the year ahead around payments fraud.
Strong Customer Authentication under PSD2: Consumer Education Will Be Crucial to Success
The European Banking Authority (EBA) has finally provided the promised update on SCA supervisory flexibility timelines – with a new hard deadline for migration completion of December 31, 2020. According to the new guidelines, migration plans of PSPs – including the implementation and testing by merchants – should be completed by that date, otherwise all players could face serious penalties for non-compliance.