Disintermediation in retail payments forcing banks to develop culture of digital finesse
Developing a convenient payments instrument even better and more secure in product application and usage is critical for market success. September 12, 2013 | ResearchAsia’s retail payments infrastructure is moving towards real-time, straight-through electronic processing. This is emphasised by the emergence of new payments devices as well as the rapid adoption of electronic and mobile payments. Customer expectations and behaviour are increasingly veering towards instant delivery and “always on” connectivity. Innovation in both clearing and settlement is no longer the undisputed turf of established payments players. The emergence of new payments devices and non-device based payments (e.g. virtual cards, digital wallets), near-field communication (NFC) and mobile point-of-sale (mPOS), involves a much wider range of players in the value payments chain. In particular on the clearing side of payments, non-bank players are aggressively moving in. New kids on the block Square is a new payments model making major inroads in the US. Card payments can be instantly accepted through Square via a smartphone, with simple user authentication by face and name recognition. When Square turned phones into mPOS stations, it took away the merchants on-boarding “friction” which is fairly complex. While non-bank payments players, including telcos, payments specialists and global players have attempted to introduce solutions circumventing commercial banks, most of their attempts failed, at least in mature markets in Asia. However, there might be one area where non-bank payments players can take a piece of the pie: the merchants business and/or point-of-sale (POS). With interchange fees making the acquiring business increasingly competitive, payments providers with fewer charges have the ability to gain traction among merchants. Electronic payments vary significantly by country Despite a few technical changes that have occurred in recent years, the traditional payments landscape hasn’t changed much. While banks are upgrading their infrastructure to adapt to the re... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Cards, Channels, Innovation, Mobile Banking, Retail Banking, Retail Payments, Technology & OperationsCards,Channels,Innovation,Mobile banking,retail,Retail Payments,technology, Cards,Channels,Innovation,Mobile Banking,Retail Banking,Retail Payments,Technology & Operations, Keywords:NFC, MPOS, Micropayments, PayPal, Visa, Shinhan Bank, Hana Bank, American Express, Westpac, Chinatrust Commercial Bank, DBS, Sandeep Lal, HDFC Bank, Parag Rao, HKMA, Peter Pang, M-PESA NFC, mPOS, Micropayments, PayPal, Visa, Shinhan Bank, Hana Bank, American Express, Westpac, Chinatrust Commercial Bank, DBS, Sandeep Lal, HDFC Bank, Parag Rao, HKMA, Peter Pang, M-PESA
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