44 Percent of Payments Executives Want to Disrupt Their Value Chain
Reducing the number of intermediaries, such as card networks, in the payments value chain is the top request among executives, according to new report from ACI Worldwide and Ovum
Monday, June 01, 2015
NAPLES, FLA—June 1, 2015—As the customer experience and cost structure of payments shifts, organizations are realizing the deeper implications that these dramatic shifts are having on their businesses. A new Global Payments Insight Study of consumer finance, higher education, insurance and other billing organization executives, conducted by ACI Worldwide (NASDAQ: ACIW) and leading market research and advisory firm Ovum, provides insight into payment strategies and investment priorities to take advantage of these changes.
Principle findings of this study include:
Revolutionizing the cost structure
- Reducing the number of fee collectors in the payments value chain is the top opportunity cited by nearly half (44%) of the respondents, ranking higher than both targeted offers (41%) and mobile (39%)
- Nearly 60 percent (59%) of respondents are evaluating direct connections with banks to eliminate or reduce reliance on card networks—illustrating how organizations may reduce fee collectors
- 85 percent of banks report wanting to work more closely with organizations to reduce costs
Transforming the customer experience
- 75 percent of organizations believe consumers expect more payment options:
- 92 percent of respondents representing consumer finance companies
- 91 percent of respondents representing higher education institutions
- 70 percent of respondents representing insurance companies
- In response, 50% of organizations are evaluating at least eight new payment methods
ACI and Ovum will be hosting a webinar Tuesday, June 16, at 2:00pm ET on the findings. Attendees will learn about the investments organizations are planning to increase consumer engagement, eliminate costs and strengthen security. To register and receive a copy of the report, please click here or visit http://www.aciworldwide.com/billpayinsights.
This digital survey was conducted online to key payment decision makers globally in the fourth quarter of 2014, providing a snapshot of payment perceptions among financial institutions, scheduled billing and payment taking organizations such as higher education, consumer finance and insurance, and merchant retailers.
Overall, this included a total 1,119 executive respondents across 15 industry sub verticals in 25 key global markets, resulting in over 144,000 separate data points on perceptions and expectations of payments among critical payment enablers globally.
About ACI Worldwide
ACI Worldwide, the Universal Payments company, powers electronic payments and banking for more than 5,600 financial institutions, retailers, billers and processors around the world. ACI software processes $13 trillion each day in payments and securities transactions for more than 300 of the leading global retailers, and 18 of the top 20 banks worldwide. Through our comprehensive suite of software products and hosted services, we deliver a broad range of solutions for payment processing; card and merchant management; online banking; mobile, branch and voice banking; fraud detection; trade finance; and electronic bill presentment and payment. To learn more about ACI, please visit www.aciworldwide.com. You can also find us on Twitter @ACI_Worldwide.
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