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The challenge for the retailers is a need to embrace these new consumer shopping and payment expectations, and the need to learn from new consumer consumption and payment patterns. This is driving complexity for retailers since it means supporting new checkout means, new payment services, new payment channels, new payment technologies, and adapting to new way of enabling the shopping journey. The payments industries challenge is the need to support the retailers demands for omni-channel payment processing and multiple-payment service acceptance. This is driving complexity for payment platforms since it means supporting omni-channel payment services, new payment technologies, digital payment security standards, and adapting to new ways of enabling the omni-channel payment experience for paying customers. This includes for example, in-store payments made with online banking apps.
This report highlights the impact of new payment challenges for both retailers and the payments industry. Beyond the pain of using payment services separated by channel, a new kind of Open Retailing payment platform approach could enable retailers to benefit from omni-channel payment services offered by their supporting payment service acquirers.
The challenge for the payments industry is to transform existing payment solutions by channel into omni-channel Open Payment service platforms that combine the omni-channel payment acceptance requirements of modern retailers with the card payment ecosystem and the emerging Open Banking payment ecosystem.
In 2018, it can be stated that the global payment services market is changing, and with it the payment processing platform requirements for the payments industry. The payments industry needs a strong global omni-channel strategy both for cards and card-less payment services to succeed.
Across the value chain, retailers and the payments industry need to invest in new technology as they adjust to shifting market conditions and consumer expectations. For many, these investments are necessary to respond to short-term changes, but in many cases, these decisions also form part of longer-term digital transformation plan. The decisions that are made in the coming years will lay the ground for the shape of future value chains and the businesses that participate in them.
Investments in payments technology and services have become mandatory. The need to support changing consumer payment preferences remains a major driver of change, particularly because of the increasing expectation that payment services will become a deeply embedded and largely invisible part of the customer payment experiences.
With the global payment trends and an Open Payment platform vision in mind, Payments Cards and Mobile collaborated with RS2 to analyse the mobile consumers payments behaviour and global payment trends. Although new payment services and the fast-changing payment behaviour of individuals may apply first in Europe, USA or China, most of the findings in this report are believed to apply to other regions – sooner or later.
The methodology used in this report is composed of results from recurring market research in the payments industry and in the retail sector. In addition, the views from leading retailers, payments industry champions, and industry experts were examined.
Radi Abd El Haj
CEO & Executive Director – RS2
