The Future of Payments report published by Raconteur, which was in The Sunday Times on 31st May, explores the payments industry’s key challenges and opportunities, its fragmented and competitive landscape, the move to mobile, volatility in the currency market, and how financial services are transforming the payment sector by embracing innovative technologies.
2015 has already been a busy year for the payments industry as customers seek new innovations to simplify the way they make payments. Customers are beginning to explore new services and solutions, and are moving away from traditional financial institutions to FinTechs that are able to offer greater flexibility, cost savings, transparency, and improved speed when processing transactions.
With a number of tech companies dipping their toe into the world of payments, yet another new set of challengers have emerged to disrupt traditional financial institutions. Apple has recently launched a payment solution in the UK , and Snapchat already have a reported 100 million users who are able to register a debit card and send money directly to a contact’s bank account from within the app.
The outlook for mobile payments is looking strong, and over time, mobile payments will become a more normal part of everyday life, with Generation Y poised to lead the way. However, security of the payment method is the most important consideration for consumers when making payments, more so than the convenience of making them, and so it may still take some time before mobile payments become more widely accepted.
Gaining control of international payment flow in a volatile FX market is also a recurring message throughout the report, with an expert panel from HSBC providing insight into how organisations can transform the way they manage payments to improve cash management.
Streamlining payments to make them as fast, easy, and friction-free as possible is a common theme throughout the report, and it is clear that those organisations who cannot keep up with the innovations happening within the payments industry will be left behind.
Read the full report here.