Your Friday fix for global fintech and payments news
This week Apple has given the first glimpse of the iPhone 12, due to be announced fully next week at their virtual ‘Hi, Speed’ event. Meanwhile in the world of payments, Capgemini released the 2020 World Payments Report, local communities are banding together in the wake of the pandemic, and research from ING states that consumers are suspicious of open banking.
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.
- World Payments Report 2020: COVID-19 drives transformation
- Europeans are spending more to support local communities
- Consumers remain suspicious about open banking
Capgemini has released their annual World Payments Report. Unsurprisingly, this years’ report focusses a lot on how COVID-19 has transformed the world of payments and the huge effect it has had on industry dynamics.
Growth in mobile payments is expected over the next few years all over the globe, with Asia-Pacific looking to outpace the other regions before 2023. Asia-Pacific has also taken the lead for non-cash transactions, with 24% of the global total between 2014-2019.
Anirban Bose, CEO of Capgemini’s Financial Services and Group Executive Board member, said: “COVID-19 has accelerated the rate of innovation within the payments space to quickly form the ‘next normal,’ requiring payments firms to be digital masters almost overnight. Now more than ever, payments providers need to deliver differentiated offerings that emphasise speed, convenience, and a superb end-to-end customer experience.”
New research published by Mastercard shows that European consumers are now more likely to go local when shopping for goods and services. According to the research, 28% of consumers are developing relationships with their local independent retailers and 26% are looking for, and trusting in, recommendations from their local community.
77% of respondents said that they prefer to buy from someone they know since COVID-19 hit the globe and that 49% are looking to spend more locally to help communities bounce back from the pandemic.
Mark Barnett, President, Europe at Mastercard said: “Small businesses are the backbone of the economy. As people reconnect with their local communities, they are rediscovering the huge number of great, varied and unique small businesses in their local communities and neighbourhoods.”
In our last Weekly Roundup, we bought news from The Open Banking Implementation Entity (OBIE) that open banking had recently seen a huge uptake in the UK. However, interestingly this week, ING reports that across 13 European countries, an average of only 30% of consumers are happy for companies to share their data if they give consent. Team this with only 35% saying that they had heard of the capabilities of open banking and then those that had heard of it saying that it isn’t useful, and we have a stark difference in news pieces.
"In the end it may just come down to convenience and trust," states ING in the study. "The benefits of open banking, such as quickly tracking finances and moving assets around from one interface are quite easy to see. Trust, though, is more complicated, relating to attitudes towards both the institutions involved and the security of accessing data. And calculating the value of sharing one’s individual data is complex."