The Banking Battle for Payments
With the advent of new technologies, the expectations of consumers have completely changed the payments marketplace than ever before. With the transformation of the entire ecosystem, credit union and traditional banks need to re-evaluate their role and roll out better value-added solutions and services for the future. According to the World Payment’s report (WPR) in 2017, digital payments are predicted to cross over 800 billion transactions by 2020. Markets that will emerge will lead this growth with latest technologies like multiple bank cards, wearable devices, and augmented reality that will benefit in the transaction to cashless growth.
Emerging technologies like the IoT and Blockchain are starting to disrupt the payments ecosystem and at the same time, stimulating growth in new markets and competitors. According to WPR, “there will be more than 15 billion machine-to-machine and consumer electronic devices that are expected to be connected by 2021.” The transactions will only lead to large amounts of data that will enable banks in tracking behavior and preferences as well as the overall activity which will result in customized use cases.
The opportunities in the new payment systems digitally also come with risks of cyber threats and privacy as it impacts legacy technologies along with new technologies. It will not be an easy sail for organizations that are looking to transform as a player in the future payments marketplace. Banking executives also have a lack of clarity in regard to the various regulations. It will ultimately be the commercial and consumers that will show the result and firms can implement technological solutions to address the need for security, with speed.