Meanwhile, advances in technology help shift emphasis away from physical instruments to electronic mechanisms for value transfer: in most European economies, the use of cash and checks is falling steadily, with debit and credit cards the most widely accepted substitute.
Alternative payments methods are now challenging the established issuer-scheme-acquirer model. The ubiquity of consumer technology is supporting this trend. Face to face transactions are losing ground to purchases made online, while mobile devices are being put forward as a key component of the future payments ecosystem. These changes are attracting new competitors to a domain that has traditionally been the preserve of retail banks.
Oliver Wyman, in cooperation with Efma, conducted a comparative study with over 150 institutions from July to September 2012. We have now published our findings in the accompanying report, Advanced and Mobile Payments: What’s Stopping You?
The payments sector remains vibrant, dynamic and a principal area of innovation in financial services. The low capital requirements and the annuity nature of payments make for an attractive business from an investor’s perspective. Pricing of traditional payment instruments is under pressure and continues to be a point of interest for regulators, focusing the attention of incumbent operators.
-
Insights A Brand Voice That Rises Above Interview with Steve Henig, Chief Customer Officer at Wakefern -
Insights Is Money All That Matters? A nation’s human-capital policies must be agile and adaptable, yet effective enough to drive national-scale transformation. -
Insights Making The Invisible Visible Women are still passed over for the most senior leadership roles with only one in four executives female. What's preventing progress on women in leadership? -
Journals Changing Consumers, New Opportunities We interviewed global senior retail executives for the Retail And Consumer Journal, Volume 8, on the pandemic challenges they faced and the new opportunities it provided.