In February, I attended the 10th anniversary of the Merchant Payment Ecosystem Show in Berlin. There were over 800 attendees at three conferences mingling in one exhibition area. There were also 300 plus C-level executives, 145 speakers, 37 sponsors and 30 exhibitors.
- Frictionless payments – Frictionless payments occur when payments happens easily, securely and without obstacles for the purchaser. Uber has been cited as a good example of a payments transaction that minimizes the friction points. If you take a taxi ride with Uber, instead of fumbling for cash or a credit card at the end of the ride, in an Uber taxi you just get out. Regulations such as PSD2, Dynamic CVV and 3D Secure can have both a positive and negative impact on the goal of obtaining frictionless payments.
- Open Application Programming Interfaces (APIs) – In order to be successful within this new payment and banking environment, open APIs will help. APIs make it possible for the products and services of one company to connect with those of another company. By opening its data, functionality and services to third-party developers, a financial institution can expand its innovation capability to comprise an entire ecosystem of interest partners.
- Machine learning, big data and analytics – Companies were talking less about their devices and more about machine learning, big data and analytics. Machine learning can help to identify fraudulent transactions.
- Understanding local/national markets – It is important to understand payments on a local / national basis. There are cultural differences which need to be understood when rolling out a payment solution within a particular geography. For example, the United States, which is the world’s highest spending card market, has a much higher proportion of credit cards than most of the rest of the world. Whilst in in some Islamic countries there is growing acceptance of pre-paid and charge cards to comply with the Islamic teaching that interest should not be charged on loans. It is also important to get detailed and comprehensive information on the payments landscape within a particular country. This will help to minimise problems and reduce costs.
MPE 2017 award recipients include:
- Acquirer Award: AIB Merchant Services
- Processing Award: Verifone
- Mobile Payments Award: Spire Payments
- mPOS Award: Worldline
- Emerging Payment Award: Yandex.Money
- Online Payment Method: Payza
- Personality Award: Miriam Wohlfahrt
- International Awards: ACI Worldwide
- Channel Award: AEVI
- Data Information Award: Barclaycard
- Data Security Award: Barclaycard
- Innovation Award: Wallee
- PSP Award: Payvision
Evolution of Payments
- In summary, the whole payments ecosystem is evolving from a traditional four party model (with the acquirer, issuer, cardholder and merchant) to a more flexible model which encapsulates open APIs, the Internet of Things and frictionless payments experience for purchasers.
- For manufacturers, providers and consumers, this flexible model will be more future proof. It will increase simplicity, speed and security and will also lead to new forms of payments being introduced easily. As on delegate eloquently put it “payments had moved from boring to boardroom.”