The advent of digital, mobile and social media has integrated finance into the daily life of the individual in a way it never was before and given the pace of technological, commercial and regulatory change, it is impossible to guess where payments will be in the coming decades.
A few broad trends, however, are likely to continue. The traditional payments customer persona should be expected to continue to decline as the demand for a personalized experience from banks continues to increase.
Digital natives, oriented towards convenience and practical usability, are expected to avail services of banks proactive in understanding and anticipating their needs. On the business side, clients increasingly expect the same speed, simplicity, and insights they get as consumers. Business tend to move towards integration
and simplicity, seeking a ‘one-stop shop’ for business payment solutions and insight-driven, tailored services.
In contrast, we should expect electronic and card payments to continue their rise in popularity. In fact, the physical methods we use may become less important in categorizing payments. Card and non-card payments are already blurring as the international card schemes investigate how to deliver “cardless” solutions, such as mobile payments or in that case payments made from smartwatches like the Apple watch.
This blurring will likely see competition intensify, particularly in online payments, where the barriers to entry significantly lower for new entrants. New digital currencies, such as Bitcoin, may also reshape the payments landscape in Australia.
Online and cross-border commerce are likely to continue increasing, creating demands for new services and use of global standards. There may also be a greater expectation for more information to be provided with payments, made possible with the introduction of improved technologies. Some of these challenges will be met by the “New Payments Platform” infrastructure and overlay services.
The world will be a much different place – more connected, more digital, faster and smarter. However the reason for payments – to efficiently facilitate economic activity – will continue.
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