Nearly 80 Percent of Banks, Retailers and Billing Organizations Know They are at Risk of Customer Attrition…
Yet only 40 percent are doing anything about it, according to New
Ovum/
The four-part Global
Payments Insight study, conducted by
Principle findings of the survey included:
- Security Hindrances: more than 50 percent of respondents cite security risks as the top issue preventing payments investment; however, this will only increase the inefficiencies and risk in payment systems.
- Customer Experience is Key: Banks are viewed as the best provider of payment technologies (more than 50%). However, if they don't deliver the customer experience, they are at risk of losing market to third-party payment specialists (e.g. PayPal), telecom providers and large software entities making inroads into mobile wallets (e.g. Apple and Google).
- Advantage—Banks: In many payment product categories such as contactless cards and real-time clearing and settlement, banks hold an advantage, with ratings of 68 percent and 66 percent, respectively. However, even in less obvious banking-related fields, such as mobile apps (46%) and mobile QR codes (48%), banks are still regarded as the most capable providers of these payment services.
- Retailers and Billing Organizations want to work directly with Banks: Surprisingly, given the recent years of legislation across the world, retailers and billing organizations want to work together to provide a richer consumer experience and to slash costs by cutting out intermediaries. 44 percent of organizations claim they are already taking steps to, or would like to eventually, reduce the number of intermediaries in the payments value chain. The feeling is mutual on the other side of the often hostile payments table, with up to 90 percent of banks wanting to work directly with retailers and billing organizations.
"The payments industry is in the midst of a rapid evolution. Where
payments were traditionally given little attention up until a few years
ago, the changes taking place just on a daily basis are significant, to
say the least—from new providers to new platforms to new payment tools,"
said
"For banks, retailers and billing organizations, the key takeaway is
that the customer experience is the primary imperative and this will not
change. All of these players must satisfy shifting consumer demand and
enhance their payment capabilities," said
ACI and Ovum will be hosting a webinar on the retailer findings
To receive a free copy of the Global Payments Insight Study, please click here or visit http://www.aciworldwide.com/paymentsinsight.
Survey Methodology
This digital survey was conducted online to key payment decision makers globally in the fourth quarter of 2014, providing a snapshot of payment perceptions among financial institutions, scheduled billing and payment taking organizations such as higher education, consumer finance and insurance, and merchant retailers.
Overall, this included a total 1,119 executive respondents across 15 industry sub verticals in 25 key global markets, resulting in over 144,000 separate data points on perceptions and expectations of payments among critical payment enablers globally.
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Media Contact:
dan.ring@aciworldwide.com
Source:
News Provided by Acquire Media
