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5 Payments Trends defining the industry right now

We’ve recently welcomed Steph Thomson to the team at Expand. With 11 years’ experience in specialist recruitment, Steph is already proving a valuable addition to our business. She’s helping us serve our existing clients and drive new business in the Fintech industry, a sector that continues to experience huge growth and a critical need for talented candidates.

With this in mind, here are five of the hottest trends defining payments right now.

  1. User experience is king

As traditional differentiators (transaction speed,convenience and access) flatline, revenue streams are becoming commoditised and customer experience is becoming the key competitive differentiator. The winners will be those who can create a frictionless, omnichannel experience that provides personalised, timely services. A digital-first, customer-centric approach will be key in achieving this.

  • APIs provide the backbone for integrated ecosystems

Open Banking initiatives will continue to be rolled out globally,notably in developing markets like China and India. In the new world, collaboration is key, with APIs enabling the integration of third-party services to traditional providers. Banks offering platform-based services with a modular approach will be central to – and ultimately dominate – the API economy.  

  • Advanced identity solutions are solving cyber challenges

Cyber risks are mounting as the number and velocity of digital payments increases exponentially. And as the industry moves towards a more open ecosystem, there’s an urgent need to balance UX with security controls. New standardisation, decentralised data-sharing capabilities and advanced digital identity solutions (behavioural biometrics, cross-device single-sign on, device identification) are helping to mitigate risk.

  •  Fintechs and incumbents are collaborating

Fintech disruptors are now more willing to work with traditional providers, and banks are starting to think like fintech. This marriage of opposites is driving innovation: what traditional players lack in agility, risk tolerance and expertise in disruptive technologies, they make up for in infrastructure, reputation and customer base. However, new governance models to address issues around data sharing and customer ownership are essential for effective collaboration.

  • Analytics and machine learning are driving hyper-personalisation

Payments generates vast amounts of rich data, but it’s only since the decline in processing cost and the development of advanced analytics that providers have started to harness it’s power; creating new services and enhancing customer experience. For example, machine learning can define the characteristics of each transaction and build a model to predict the best offer for a customer. Whilst the opportunity is huge, providers will need to build in data protection and compliance with legislation like GDPR. 

If you are working in the payments sector and would like to chat about new career opportunities or hiring for your team, contact us here for more information.