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What’s Next In Payments Technology

Over the longer term, the use of credit cards over cash could start to be replaced with mobile payment options as the sector starts to offer an increasing number of innovative alternatives to credit cards.

Digital payouts and the replacement of paper checks (especially handwritten) will quickly become the norm in B2B when businesses begin capturing the economic benefits from making a change without incurring a lot of pain in doing so.

Payment technology has too many barriers and security holes. With millions using smartphones, it should be easy and hassle free. Mass adoption of mobile wallets with NFC, bluetooth technology and cryptocurrency is the future that FinTech developers should be focusing on.

A new payments authentication protocol introduced last year, called 3DS 2.0, incorporates mobile apps and IoT devices and will make the new payments ecosystem safer and smoother to navigate for consumers, merchants and issuers.

For customers, the future of payments includes real time payments, transparency, fast and easy KYC. Payment companies will need to deliver on all of those. Blockchain technology is going to play a huge part.

The market is experiencing a new point of sale process direct to consumer, eliminating the sales person. This is being executed through mobile wallets and payment applications.

It’s time for the big 4 banks to enable the technology within their infrastructure and set up the ability for customers to sign on and configure their cards.

Payments-linked innovation is having to be increasingly driven out of fundamental changes to the payments ‘plumbing’ (ie, legacy systems & clearing streams) or methods of bypassing the plumbing.

Payments Technology is at a point of disruption through the use of blockchains. To make this possible we must bring governmental requirements around compliance and KYC to blockchain technologies.

Banks are now looking to expand business lending and to better serve their market. The biggest trend is consolidation. Newer alternative lenders are learning that managing net interest margin (NIM) is more important than they realized.

Vendors manage multiple payment providers for different channels, which impacts the consumer experience. The future is omni channel payments integration, facilitating tokenization of customer data between online, mobile and in-store payments.

There are different disruptive trends in the fintech industry that may change our payment habits dramatically. In-vehicle payment and payment with wearables can be considered among the most prominent.

Consumers will have increasing options to control payment experiences through their personal devices. We can also expect to see a wave of payment devices coupled with predictive analytics and personalization.

It’s important for the payments industry to get mobile and digital right. To do so we need to do much better at what the industry calls its “minimum security” requirement.