13 Nov Payment Strategy - Renew the old, ring in the new
Despite advances in digital payments, trillions of dollars in cash are still in circulation worldwide. In the U.K. alone, there were just over 18 billion cash payments in 2014, and cash was used by consumers for 53 percent of transactions, according to Payments UK. The Federal Reserve estimates that in August 2015 $1.38 trillion in U.S. currency was in circulation.
To drive these cash payments to digital payments, all participants in the payments industry, from incumbent payments services organizations to non-banking and emerging payments providers, need to work to make digital payments more convenient, faster, easier, secure, and seamless across multiple channels for consumers. Governments and regulators like this too!
Existing players are far too often stifled by legacy systems that hold them back. The upstarts and the FinTechs are making bold forays with their focus on user experience and eliminating the “friction” inherent in payments. For most players, the way forward involves adopting a strategy of renewing existing infrastructures and introducing new technologies - “renew the old, ring in the new.” As part of this “new and renew” transformation process, technologies supporting new digital efforts such as mobility, near-field communication (NFC), digital wallets, tokenization, real-time clearing and settlement, and omnichannel integration are key. While being digital is essential, players need to ensure that their legacy systems can handle key digitization efforts and plan for, and implement, what their customers want now and in the future.
Teaming up with an experienced and creative multinational partner with payments industry expertise will be essential to successfully navigate the “new and renew” transformation process.
Read more the insights of this report conducted by InfoSys here!
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