New ACI Worldwide and Ovum Research Reveals More than 75 Percent of Banks, Retailers and Billing Organizations to Increase Spending on Payment Systems
Tuesday, April 26, 2016
NAPLES, FLA—April 26, 2016—More than three-quarters of banks, retailers and billing organizations internationally plan to increase their spending on payment systems in the face of increasing competitive pressure and a feeling of being ‘under siege.’
The five-part Global Payments Insight study, conducted by ACI Worldwide (NASDAQ: ACIW), and leading market research firm Ovum, asked more than 1,600 executives representing leading banks, retailers and billing organizations across the Americas, Asia-Pacific and EMEA about their experiences, perceptions and expectations of payments and how payments are shaping their behaviors today.
Principal findings of the survey include:
- Competition drives spending: 71 percent of executives stated that new competitive pressures and the burgeoning threat of FinTech are driving investments in their own payment systems.
- Security Tops The Agenda: Security is a critical issue for retailers, with the theft of customer payment details a major concern for 70 percent of the market. The growth in eCommerce has resulted in Card-Not-Present Fraud becoming the most pressing issue for 59 percent of retailers.
- Immediate Payments Offer New Opportunities:57 percent of European executives believe that consumers will benefit directly from Immediate Payments. Moreover, 59 percent of transaction banking executives also believe that businesses will benefit directly from improved liquidity management, lower risks and faster payments.
- Payment Initiators (merchants and billers) Continue to See Existing Payment Operators (banks or payment acquirer): With 87 percent of merchants considering these as their primary provider of payment services. There is a real drive to reduce the cost of payment; in particular, merchants are increasingly less likely to consider working with networks and other payment schemes.
- Increasingly Polarized Payment Trends: On one side, payment initiators looking to simplify their payment value chain whilst increasingly exploring other payment provider categories, most notably online payment providers, with 74 percent of European retailers willing to work with them in future.
“The payments industry is undergoing radical change that will have far-reaching consequences for banks, billers and merchants, as well as for the consumers and business customers to which they provide services,” said David Bannister, principal analyst, Financial Services Technology, Ovum. “How all of the players in the industry adjust to these changes and interact with each other will be a crucial factor in their future success.”
“For all of these organizations, the key takeaway is that competitive pressures are driving up spending in the marketplace. Spending small, incremental amounts will only lead to an erosion of market share, said Paul Thomalla, senior vice president, ACI Worldwide. “The payment initiators of the world want to work directly with payment operators. By doing so, they will be able to lower payment costs, reduce complexity and increase investments to stave off the threat of new competitors.”
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 $14 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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