Your Friday fix for global fintech and payments news
This week has seen various financial institutions announce that they are gearing up to close more branches and cut jobs, as well as major UK supermarket Sainsbury’s looking to sell off their banking arm. In other news, Payments Cards and Mobile delved deeper into the Global Payments Report 2020 and predicted what might happen next in Asia, LATAM and MEA, Compass Plus customer Klarna discusses how e-commerce became the only way to shop on Fintech Finance PayTech Show, and we released a white paper with Consult Hyperion on how your payments platform can help you meet the business needs of today and prepare for tomorrow’s.
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.
- Payments report: Regional payments revenue growth estimates Asia, LATAM and MEA
- The Paytech Show 4.02: eCommerce & The Future of How We Will Pay
- Future ready payments platforms – with Consult Hyperion
Following on from a review of Boston Consulting Group’s Global Payments Report 2020, Payments Cards and Mobile’s Alex Rolfe took a deeper look into what is likely to happen to payment growth revenues in Asia, LATAM and MEA over the coming years.
With an average increase in payment revenues at 9.3% in Asia Pacific between 2014 and 2019, Rolfe predicted that while growth would start to slow, countries would fall into 3 distinct areas: almost cashless (South Korea, Hong Kong and Singapore), transitioning to cashless (Malaysia and mainland China), and cash loyal (India, Thailand and Indonesia).
Meanwhile, LATAM is seeing digital wallets penetrating the market, with merchant-led wallets taking foothold currently, however regional banking initiatives seek to take a piece of the action. In the Middle East, e-commerce and digital payments are increasing, while Rolfe says this of Africa: “Africa has its own market characteristics. Historically, cultural norms and the fact that 65% of the population is unbanked contributed to a heavy reliance on cash across the continent. But this is changing.As with the Middle East, government, bank, and nonbank payments players are promoting the use of digital payments through consumer education, reduced transaction fees, and product innovations.”
This week’s episode of The PayTech show from Fintech Finance saw Compass Plus customer Klarna sit alongside Giesecke + Devrient and SumUp to chat about how e-commerce has become the only way to shop.
Alex Marsh, UK Country Lead at Klarna, discussed how retail has changed over the past few months and the shift to online commerce that they have seen across all age groups and markets. While Yukka Yliuntinen from Giesecke + Devrient highlighted how the mobile device is now being used more than ever for banking and payments – from bank transfers to contactless payments at physical merchants, as well as the acceleration and uptake of contactless payments across the globe.
And last, but by no means least, this week we released a new white paper in collaboration Consult Hyperion. Future ready payments platforms – meeting today’s business needs and preparing for tomorrow’s analyses 2nd generation payments systems built in the 1990s and compares them to newer 3rd generation systems that were built in the 2010s with innovation in mind, asking whether a system entering its fourth decade can really help future proof your business?
The white paper describes:
- How payments platforms have evolved
- The characteristics of traditional payments platforms and the problems these cause financial institutions attempting to compete with competitors using modern platforms
- Why financial institutions might be reluctant to migrate to a modern platform
- The typical architecture of a modern 3rd generation payments platform, its capabilities and the benefits it can deliver to a financial institution
- Finally, it describes why financial institutions need to migrate and the benefits they will enjoy post-migration
If you haven’t had the chance to have a read yet, why not? Click on the link and take a look…