The payments space is undergoing profound changes as legacy brands, new entrants and merchants engage in competition for market share and mind share. This trend is explored in a newly released issue of Admap focused on the future of payments.
What seems obvious now hasn’t always been the case, Tony Hooper, SVP Client Engagements at iQuanti, reminds readers in his article Mobile UX and P2P payments drive evolution in financial services . As recently as 2010, for example, mobile represented just 8% of American adults’ media time; now it’s 33% and growing.
That rapid shift toward mobile caught many consumer financial brands flat-footed, he observes. Today, big banks are making a concerted effort to enhance their mobile user experience in initiatives that will continue as legacy players work to catch up with mobile-first competitors in the payments space.
Hooper points to Venmo, the P2P payments platform popular in the United States, as one brand leading evolution in the category. Venmo's payment volume surged 73% in the first quarter of 2019 to more than US$20bn. As far as consumer payments are concerned, Hooper believes that “mobile-optimised UX will win the day."
“Critically, the Venmo user experience is highly streamlined – not to mention free in most use cases,” he notes. “Other successful players, like Alipay and WeChat Pay in China, have taken a similar mobile-first approach, capitalising on large-scale smartphone adoption to make payments truly painless.”
A move toward more frictionless user experiences is also likely to be a priority. Alipay and WeChat Pay allow users to send payments instantaneously to their contacts within a single app, and Apple offers a similar functionality in iMessage which enables users to transfer money via a linked Apple Pay account.
As back-end technology continues to evolve in the direction of automation, there will be an advantage for those brands who can move first in this space, he believes.
“Integration both within and between platforms will be a differentiator, as players bid to offer users a seamless experience,” says Hooper.
This issue of Admap on the future of payments features articles by thought leaders from across the globe. WARC subscribers can access a deck which summarises the expert advice from contributors and key considerations on the topic.
Sourced from Admap