The Payments Industry’s Digital Evolution

The payments industry is the foundation of financial services and critical for functional business. It is an industry that has evolved significantly since its outset. The rise of the digital revolution is no different. In most recent years fintech advancements have revolutionised the payments industry and physical money could be a thing of the past as payments made with a smartphone become commonplace within society. Such growth is exponential, with mobile banking set to replace online banking by 2023, amassing to a $190bn industry. The main clearing banks have been relatively slow in the creation of agile payments causing 64% of millennials to opt out of the outdated and inflexible traditional bank, instead choosing the convenience and variety of mobile payments and money management/wallet apps.

As consumers quickly realise payments made with mobile can exceed the £30 minimum set by contactless, developments within the digital wallets industry is soaring, creating a new competitive digital payment landscape. The asset-light, high cash flow nature of the business is ensuring competition remains high and saturated, providing consumers with a choice greater than ever before. But with convenience comes greater risk.

Expansion in the e-commerce payment industry causes the rise in fraudulent misuse of card-not-there payments. Data analytics software can be utilised to certify identity and detect fraudulent actions in real time.

Changing consumer attitudes and expectations can explain the recent surge. The contactless payment process is psychologically less painful, and online shopping is easier than ever before. Consumers are now expecting risk free and quicker payments, making many countries well on their way to becoming cashless societies. Our document scanning solution can determine whether an individual is actually who they claim to be through cross-checking the information with their social media accounts.

Furthermore, mobile digital payments allow for the analysis of a customer's digital footprint. Combining with the use of PROFILE, aids the continuation of the relationship through the provision of relevant products and information, attached to digital receipts for example, to drive customer retention and ultimately maximise marketing ROI.

The payments industry is well on its way to being fully digitised, with cash being predicted to account for just 21% of payments by 2026 in the UK alone down from 62% only 20 years prior. It is therefore imperative businesses emplace the measures to ensure reliable, secure and flexible payment options for customers and commercial partners, and continuously transform to the rapidly developing FinTech sector.

Get in touch here to find out how we can help your business reduce fraud and improve ID verification.

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Author Charles Mott