Kristin R. MoyerKristin Moyer, Christophe Uzureau and Alistair Newton here. Compliance requirements and the financial crisis are moving payment operations into the spotlight. This is creating an opportunity to make payments more strategic and to become a higher-priority technology investment.
Here are five things that will be new in payments in 2009:
- Card at the center of the customer relationship -In 2009, more banks will begin using cards as a central focus of the customer relationship. This will be particularly evident in Europe, where SEPA has forced banks focus on payments.
- Revenue from payment information value added services (PIVAS) – In 2009, banks will begin to drive revenue from PIVAS. Product innovation is rarely the differentiator in banking. With payments, the ability to leverage data for value added purposes is the differentiator.
- Core banking renewal as a trigger – Payments modernization is a seemingly unstoppable force, particularly in Europe. In 2009, core banking renewal will be a growing influence and trigger for payments modernization.
- Card-not-present fraud -In 2009, we expect card-not-present fraud to become a bigger problem. This will be particularly evident in the US, which is not converting to EMV. Will the US go EMV, or will it go straight to contactless driven off the mobile?
- Prepaid and the regulators – In 2009, the impact of regulators on this market could be significant. If this happens, it would force banks to focus more on using prepaid for the unbanked/underbanked segment rather than mass market/gift cards. However, the ability to do this cost effectively would be challenging for banks.
What would you add to this list?
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Category: Uncategorized Tags: banking and investment services, card not present, core banking, data, emv, financial crisis, fraud, payment information value added services, payments, pivas, prepaid
