Your Friday fix for global fintech and payments news
With the countdown to the festive period truly underway, this week we are looking at how so many global companies have not managed to maintain security standards necessary for the payments industry, we also take a look at the successes of buy now, pay later from Black Friday and, finally, whether a true omnichannel banking experience can be created on legacy architecture.
Our weekly round-up brings you a dose of some of the biggest news announcements from the past seven days so you can keep an eye on all that’s shaping our world this week.
- Only 1 in 4 global organisations maintain full compliance with PCI DSS
- Black Friday payment data reveals rapid growth of buy now, pay later
- Omnichannel banking, a myth or reality
According to the Verizon Business 2020 Payment Security Report, only 27.9% of all global organisations maintained full PCI DSS compliance during 2019. Small and medium sized businesses flagged up budget as a reason for not being able to sustain their security standard.
Interestingly, not all issues were found to be of the technology aspect of the business, but more with the organisational structure. Building a strong business model takes mature management skills, a well-defined security strategy and strong frameworks, which some smaller companies are unable to put in to place.
Sampath Sowmyanarayan, President, Global Enterprise, Verizon Business said on the matter: “Unfortunately we see many businesses lacking the resources and commitment from senior business leaders to support long-term data security and compliance initiatives. This is unacceptable.”
Research from payment services provider Mollie has shown that this year’s Black Friday had a 56% increase of overall payment transactions in comparison to the same day in 2019. The research covered all of Europe and also showed that the buy now pay later (BNPL) services are also growing in popularity. In 2019, 1.5% of transactions were conducted through BNPL services, 2020 saw a 1% increase on this number.
"It makes sense that fintechs like Klarna, who have performed phenomenally well this year, have been so popular this Black Friday. The increase is in-line with this growing trend towards more flexibility in how consumers pay for goods,"comments Ken Serdons, Chief Commercial Officer at Mollie.
Aligned with the success of BNPL services like Klarna and Clearpay over Black Friday, research from Capco says that the BNPL payment method has been used by more than 10 million people over the last 12 months.
Todays’ consumers are ever expectant of a seamless, instant and personalised experience when it comes to payments and banking. The problem is that the payment technology behind that often cannot cope with the expectations assumed of them. Legacy systems of the 90s were not built for the consumers of 2020.
Providing multiple touchpoints for banking is doable with legacy systems, but many of these channels have been built using silos with such little integration between them that they lead to increasingly fragmented customer experiences. In reality, an omnichannel experience should cover the whole customer journey, across every channel.
Anatoly Kaptsan, VP and Chief R&D Officer at Compass Plus, commented that the answer to providing a truly omnichannel experience across all channels is a payments platform architected in a way to provide a modern, dynamic, collaborative, always-online environment that gives you a comprehensive single customer view across all channels and the customer’s entire banking journey. Alongside this is required a vendor who has experience of delivering these seamless omnichannel experiences.