We can see $ 31.26 bn is expected annual global card fraud losses in 2018. Increasing collaboration between stakeholders, infrastructure rationalization vendor operations consolidation, next-generation technologies, and cybersecurity are the key emerging trends in the payments Space.
Banks Becoming Platform Players
Banks are adopting a collaborative platform model to remain central to the new ecosystem by connecting producers (FinTechs and other third-party payment providers) with consumers (merchants, corporate, and end users)
Payment Infrastructure Rationalization
Expected mergers and acquisitions will consolidate payments infrastructures and expand the reach of firms. improve value propositions to customers. and create more customized solutions
Payments services vendors are looking to consolidate to capitalize on economies of scale.
Key for innovations are elements of open API’s and alternative payments channels are increasing like for example contactless payments growth. Also, we can see innovation is driven by exploring distributed ledger technology (DLT) for cross-border payments and Instant Payments (IP) is emerging, which is seen as the new normal.
Regulators are Focusing on Data Privacy Laws
Regulators are bringing new cybersecurity regulations as 918 publicly reported cybersecurity breaches exposed over 1.9 billion data records globally in H1 2017.
Payments Firms Continue to Invest in Advanced Technologies Related to Authentication to Fight Fraud and Data Breaches.
Advanced authentication techniques such as biometrics, geo-location, and interoperable cryptographic keys are being used to mitigate cyber threats.
81% Hacking-related breaches globally leveraged weak weak stolen passwords in 2016.
We can see $ 31.26 bn is expected annual global card fraud losses in 2018.
Robotics Process Automation and Machine Learning and Helping in Fraud Detection.
RPA and machine learning are helping payment service providers (PSPs)in reducing payment fraud, while continuously monitoring systems for possible threats.
No other industry is fighting with so many possible technology improvements than the payment industry. While we know that in a lot of countries the innovation experts see credit cards and cash payments as already expired payment methods, we witness on emerging markets the innovation going backward. Credit card fraud in emerging markets are still handled like 10 years ago and products can’t speed up enough for consumers.
Take a look at the infographic below put together by Capgemini. Share your thoughts and give us an idea about the innovations you witnessed coming up or prefer the most. Use our commenting section below.