2020 is around the corner, and it is time for some predictions. I think the second half of 2019, in a way, gives us some clues: alternative payment solutions, customer experience, and simplicity. So, let us look ahead. The year is 2020, the market is Europe, and the topic is trends in the fintech industry.
As I mentioned in previous articles, it feels like the time for us to embrace new technology and devices is shorter than ever — not only in payment solutions but in society in general. This can only mean that the time between “next-generation-solution” will reduce even more. Here we need to stay alert so that the quality remains intact even if time-to-market goes on jet fuel. You see, time-to-market and user experience (read quality) are often like yin and yang, and the providers that can keep the balance will be awarded…while those who launch their beta-version will have a short life span. Loyalty is something we only can expect as long as we perform.
With that said. What will happen?
We cant talk about payment solutions without mention cash. Still, in 2020, they will play a big role in the overall payment business.
In 2020, the majority of all payments will continue to be enabled by cards (credit, debit prepaid combined). Trust, presence, and infrastructure are three drivers why they continue to rule.
These two combined represent a considerable part of the payments being made in Europe.
Not so futuristic about that. Is that it?
No, but behind these, we will continue to see new alternative payment methods being used as well as invented. As I said, the amount of early adopters grows every day. This doesn’t mean that they will outgrow cash or cards during 2020, but they will be more visible in our everyday life. They are also a good opportunity for some businesses, with a younger target, to use the payment solutions as a feature when they strengthen their brand position.
Why does it happen now? Is it just because technology allows us?
No, you see, the “digital-first generation” is now entering their spending years. This might be the #1 driver why the speed of innovation increases at this point. They see the world from a different perspective, and that will reflect how they invent as well as embrace new solutions. Parallel, CX is becoming the prime competitive differentiator. In other words, the stars are in the right position so that things start to happen. The consequences are that we will begin to see payment solutions in places we least expect. Not as the #1 go-to-solution, but present as an option. Eventually, not so long from now, they will be a natural part of the ecosystem. They will also shorten the distance between the different channels, and when that happens omnichannel will hit us big time.
Last but not least, there is one more thing I think will be a priority: security. And then I mean security in every aspect of the process. Physical as well as digital. Because like I said at the beginning of this article, innovation and security must go hand in hand to keep the overall quality where it should be.
2020 is the year when customer experience and convenience take the next step. The payment solution itself will get more airtime in the board room because of the opportunity (risk) and strength (threats) that you will get by choosing the right (wrong) one. 2020 is the year when the actual payment solution really can show an impact on the revenue.
This is my last “Fintech Insight” before the holidays. It is my ambition and hopes that my articles give you a clue about whats going on in the fintech industry. Not necessary because I have the answers, but because I can address the right questions. Send me an email if you have topics you would like me to write about.
I wish you all a merry Christmas and a Happy New Year. See you in January.
Contact me if you need help to find the best payment solution. I will introduce you to some of our leading experts. They will give you the insight required, so you can identify a payment solution that increases your revenue and enables the customer experience. Now that’s what I call a win-win.
Hans Edin, CMO at Westpay AB.