The way people pay is changing rapidly, thanks to technological innovation and digitalization. Society is becoming increasingly cashless as more consumers choose to rely on cards, as well as alternative payment methods. At present, less than 50% of all payments in the UK are made with cash, and if this trend continues then by 2026 it is predicted that this figure will drop to 21%. In 2019, Mobile technology is changing the way we pay, with m-Commerce constituting 56% of all e-commerce sales, with an estimated $3.6trn in m-Commerce sales by 2021.

The changing payments landscape challenges everyone. For merchants, payments are no longer just a cost of doing business but can drive growth, if approached holistically by them. Currently, only 20% of merchants have a mobile payments app and only 40% have a mobile-centric payments website.
On top of that, there is a myriad of new technologies like Artificial Intelligence (AI), Machine Learning (ML), biometrics, etc. impacting commerce & payments. The Internet of Things creates a seamless web of touchpoints, through integrated apps, smart devices, and integrated payments, making electronic payments even more convenient.

Instant & Mobile payments are poised to finally have its day thanks to APIs and open banking. New channels appear seemingly overnight. In 2020, “Social Commerce” and “Voice Commerce” are looking likely to become part of our everyday life. There will be more “Value Added Services” including loyalty and coupon offers that are seamlessly integrated into payment transactions. In this context, delivering a unified mobile payment experience is the new challenge in the battle for the consumer.

Omnichannel integration can be an overwhelming task for merchants. Over 50% of Retailers are focused on creating a consistent brand experience across channels. On the way to optimizing payments for omnichannel commerce, there are many questions for both payment providers and merchants. At MPE2020, the Biggest European conference on merchant payments (Berlin, Feb 18-20), over 140 inspiring speakers will provide unique insights on what payment providers are doing to help merchants to achieve frictionless shopping experience.

How should the payment companies change their business models to adapt to the new era of instant & mobile-driven payments in 2020-?

According to Jeremy Nicholds, CEO of Judopay who will speak about the psychology of mobile payments at MPE2020: „If you’re looking to build a case for technology investment, explore your business growth goals and how this new payment technology can support these plans. “

The important question for incumbent players is whether to substitute or adapt their legacy systems to cope with the new market standards & technologies?

Ruca Sousa Marques, CEO of Switch, who will cover the Interoperability in the Payments Industry in his speech at MPE2020 said: „There’s value in existing legacy systems—they’re still performing valuable actions! What's needed though, is to decouple traditional monolithic architectures into microservices setups, ones that allow for interoperability between internal/external systems, thus accelerating integrations with 3rd party vendors for quicker go-to-market strategies. For this matter, a middleware is necessary to orchestrate communications through standardized data structures, avoiding any updates in back-office systems every time a new application is connected. In his presentation, he'll propose a new model for adapting legacy infrastructures to new market standards (e.g. Mobile, PSD2, 3DS v2.0, APMs, Omnichannel), capitalizing on existent systems and preparing incumbent companies for the challenges ahead”.

If UX and Data is the new oil of Payments, AI and ML will be critical to the innovation of payments and related shopping experience and fighting the fraud. The important question is how to use data effectively to build a strong and secure customer engagement strategy?

Martin Sweeney, CEO at Ravelin advises: Work with a partner who has the resources and expertise to help you. For large enterprises, this means working closely with your fraud partner rather than relying on a payment provider to take responsibility for your fraud. It’s likely you’ll need to work with more than one payment provider, which makes it more effective to do the risk analysis and manage your fraud protection yourself. You have the most data on your customers, transactions and the fraud you’re facing. This puts you in the best position to derive the insights and results you need.

I also recommend sharing knowledge when it’s appropriate. Since we founded Ravelin, we’ve seen a huge increase in collaboration between merchants, which is fantastic. We wholeheartedly support this and try to contribute through participating in industry events like MPE, hosting our own events and creating merchant-led content.

Future of merchant payments, new business models and technologies supporting commerce and payments are among the key topics to be discussed at the MPE 2020, Europe’s Largest Merchant Payment Acceptance Conference in Berlin, February 18-20.
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