News & Views - Savantor

Looking forward

Thursday, 16 January 2020

As we enter both a New Year and a new decade, we can pause and consider the trends and/or predictions which seem likely to shape the payments market over the coming few months.

Whilst the market has always been influenced by consumer choice, this is becoming even more pronounced with the range of options available for everyday banking driven predominantly by new banking technology, including banking apps, Challenger banks, Open Banking and the ease and speed of account switching. The growth in the use of financial apps is due to a great extent to the convenience of managing transactions by mobile phone. Convenience together with lifestyle choice has resulted in a challenge to choice driven by brand loyalty, which has helped the new Challenger banks, as well as digital offerings from the incumbent banks, to succeed.

The role of big technology companies such as Google, Amazon, Facebook and Apple continues to have significant impact upon the payments sector. These companies already have significant interest in many areas which are evolving within the sphere of payments, such as social media, AI and wearables; now they are actively searching for ways to enter into the financial services, for example, the Apple credit card. The potential for payment capabilities of these companies is likely to play a significant role in the payments market over the next few years.

It will also be interesting to see how cryptocurrencies evolve and whether they develop a leading role within payments. The announcement about the Libra currency from Facebook last year initially generated a lot of excitement and drew both positive and negative feedback; since then however it seems to have become weighed down with opposition from both government and regulatory bodies and whether it can manage a way past these hurdles to become an acceptable and accepted mainstream form of payment will be key to its attempts to establish itself.

Alongside all the positive developments within the industry, fraud and security will continue to be an area of growth. The use of two-factor authentication (2FA) is now widespread and strong customer authentication (SCA) is in the process of being fully rolled out.

Biometrics using finger, iris or voice recognition is now widely used as a means of security ID for payments and is likely to play a growing role in preventing fraud as technology becomes more refined. Nevertheless, incidents involving not only individual fraud but the hacking of major systems – Travelex is one of the most recent examples – are likely to continue.

Finally, there has been much discussion about the future role of AI and it seems likely that its use within payments will grow and develop further, particularly in helping make payments more secure and reducing fraud. AI technology will allow payments to be made more intuitively (think Alexa and Siri) with minimal input from the user; a trend likely to be welcomed by consumers from the perspective of convenience.

Whilst the points above are not intended to be an exhaustive list of future trends, they nevertheless provide an indication of the way the market is evolving and some of the key areas which seem likely to play a noticeable role going forward.

Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

Acquirer Transformation

"We needed a programme manager for a complex transformation who also brought a broad understanding to help stakeholders through the change. We have been delighted with the delivery and outcomes from this engagement with Savantor."

Michael Liquornik, Executive Vice President - Neovia Financial - UK

Moneris Solutions

"Savantor did an outstanding job of the review and I received nothing but positive feedback on the interaction with our management team."

Jeff Guthri, COO - Moneris Solutions - Canada

Collections Transformation

"Savantor did an absolutely superb job for us on the Collections programme. The professionalism, hard work, courtesy and tenacity of their experts is a credit both to the individuals and to Savantor."

Peter O'Dea, Senior Manager - Collections Department - Permanent tsb bank - Ireland

Platform Selection & RFP Management

"OP-Pohjola Group has used Savantor in both acquiring and issuing for platform/service provider research, RFI/RFP processes and subsequent contract negotiations. Savantor's approach and commitment have always been very professional and transparent. They have been of great help for the company in providing us important insights and background information beyond vendors sales speeches."

Kai Lindstrom, Head of Acquiring - OP-Services Ltd - Finland

Acquiring market insight and strategy review

"Savantor brought an independent perspective and valuable insight that enabled Rabobank to ratify options for delivery and future growth and make informed business decisions in support of our target business model. Having used Savantor on a number of strategic projects, we have no hesitation in recommending their services to others."

Evert R Fekkes, SVP Payment & Savings Services - Rabobank - Nederland

New Payments Initiative

"In moving our new initiative into reality, we required specialist payments knowledge and forward thinking in the retail sector. Savantor supplied this and provided very effective guidance throughout. We enjoyed working with them."

Sophie High, Head of Innovation Delivery - Cancer Research UK

Card Processing Migration

"Disciplined methodology and effective teamwork, guided by Savantor's migration expertise and operational knowledge, were the hallmarks that led to the resounding success of this project, enabling us to maintain and develop our business capability."

Robert Lambert, Head of Cards Strategy - Permanent tsb bank - Ireland

Payments Platform Strategy and Sourcing

"We were in urgent need of external independent expertise to supplement our internal resources. Senior consultants had to quickly integrate with our team and actively contribute. Their experts quickly forged strong working relationships and delivered to our brief. We enjoyed working with them to develop our future platform strategy."

Evert R Fekkes, SVP - Payment & Savings Services - Rabobank Nederland

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.