What will the future look like for the Payments Industry? More mobile, more secure, faster

October 21, 2016
Experienced Casual Businessman on phone With Money20/20 around the corner, the Payments industry gets ready to discover what the future might bring. The leading financial and payments conference takes place at the Venetian hotel in Las Vegas and is scheduled for October 23-26.

This year’s edition will focus on blockchain, regulatory challenges and the opportunities these might bring for uprising regtech companies. The recently published 4.1 AMLD in Europe or the latest international FATFA recommendations would be examined if detail, together with recent developments of US regulations. 

Mobile payments will be another big theme for this year’s Money20/20 conference, as digital payments are on the rise. While the use of mobile phone payments at merchant locations remains flat according to the survey just published by the Payments division at Accenture North America, other digital payments are on the rise – a trend that consumers expect to continue.

“We are seeing a gradual increase in consumer awareness of mobile phone payments options; however, adoption has remained flat over the past few years,” said Robert Flynn, managing director of Accenture Payments in North America.

For example, data collated by Accenture shows that since 2014, consumers’ use of PayPal has increased four percentage points to 18 percent in 2016. Consumers expressed optimism about mobile wallet adoption in the future, expecting a nearly 60 percent increase in the use of mobile wallets by card networks (from 14 percent in 2016 to 22 percent in 2020) and tech giants (from 13 percent to 21 percent in 2020).

“Consumers are content to use cash and plastic for their everyday transactions, and while the use of cash is declining overall, it is the most commonly used form of payment – and consumers expect it to remain so in 2020. To shift consumers’ payment behaviors will take more than just providing another ‘me too’ mobile payments option; leading merchants will identify and provide next-generation, value-added services.”

Meanwhile, “Several factors will drive substantial mobile payments growth in the US. Mobile wallets like Apple Pay, Android Pay and Samsung Pay will become a standard feature on new smartphones,” according to eMarketer analyst Bryan Yeager. The latest proximity mobile payments research from eMarketer estimates the total value of mobile payment transactions in the US to grow 210% in 2016.

How can financial services institutions satisfy the consumers’ appetite for safer, faster, more convenient digital payments?

Decades working with the leading financial services providers from all over the world have taught us that delivering an outstanding user experience that answers the consumer’s need of security and convenience is imperative to win over the hearts – and pockets – of technically savvy and time-poor consumers.

But financial institutions not only need to keep their clients happy but also they must comply with the ever stringent and fast evolving Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. In an attempt to mitigate the rise of financing of terrorism and organized crime, regulators around the world are getting more demanding on their requests for customer’s identity verification, asking financial institutions to gather solid proof that their clients are who they say they are before they can go ahead and an open an account or send and receive money.

Good news is that a seamless mobile user experience and more secure identity verification are not mutually exclusive; they are in fact solved in tandem by integrating solutions such as Mobile Verify.

If you are at Money20/20 this year, come and talk to our experts about the best solution to solve your mobile capture, identity verification and ID documents authentication needs. 

Mitek’s Experts will be available at Money20/20 to answer all your questions on:

  • The opportunities that financial institutions are missing by not optimizing the digital channels for acquisitionHow integrating our industry-leading mobile capture SDK – Mitek’s MiSnap – can improve the accuracy rate of your ID authentication process and exponentially speed up the overall customer due diligence.  
  • Ways of cost-effectively onboard more good customers in a delightful, engaging and compliant manner.
  • Best practice to integrate our mobile capture, identity verification and ID document authentications SDKs with your mobile apps.

Schedule a one-on-one meeting at Money20/20 with us or send us an email to sales@miteksystems.com to request more information.

We will be at booth number 3227 in the Money20/20 Expo Hall from Monday through Wednesday (24-26, October, 2016).