Moving from 2022 to 2023
The world of payments continues to be propelled forward by digitisation in the aftermath of pandemic lockdowns. As the HPS “Future of Banking” White Paper pointed out - we are entering the next phase of digitalisation and financial institutions are having to keep pace with technology trends and accelerate product launches.
Over 2022, we have observed a number of major trends in the payment industry and have grouped them into three themes: simplicity of payments; seamless transactions; and security of payment ecosystems.
Overall, we have seen the continued rise of digitisation of money and digital payments, leading to payments becoming easier for all. This has had an impact on a wide range of areas, including society initiatives, retail banking solutions and technical strategies.
For example, the digitisation of money has had a positive impact on faster and more efficient financial inclusion. Central to eradicating extreme poverty and boosting economic prosperity for all are payment systems which help support financial stability and expand financial inclusion in the developing world.
The retail banking sector, on the other hand, is seeing high user demand for prepaid cards which target particular use cases composed of distinct customer segments or business processes that are in need of simplicity and cost effectiveness.
Further, API mechanisms are allowing banks to digitise their services enabling FinTech’s and banks to work together to progress an online and cashless society.
Increased online transactions mean it is critical for providers to ensure seamless transactions. This need has led to some innovative solutions. Non-traditional payments methods, such as digital wallets, are being propelled forward by high consumer demand. These mobile wallets provide consumers with a safe and convenient way to pay. Retailers can then benefit from the removal of friction from card payments, as well as the opportunity of gleaning invaluable insights from customer data.
Digital currencies are also a good example of innovation in payment systems. Because digital currencies are exclusively available in electronic form, they are only accessible via electronic wallets connected to internet or designated networks. Due to the potential benefits of digital currencies, a growing list of central banks and governments have begun exploring the usage of a form of blockchain technology, as they are also considering developing their own digital currency, a variant of the fiat currency, known as central bank digital currency (CBDC).
Security of payment ecosystems
With digital payments on the rise since the beginning of the pandemic, it is now more important than ever to safeguard sensitive customer data. Financial institutions are having to develop secure payment systems that can handle a range of highly sensitive data, while keeping it safe and secure at all times. To do so payment processing and information services need to provide users’ security online, ensuring their financial and personal information is protected from fraud and unauthorised access.
Another critical plank supporting the security around issuers’ payment card products and services is a card management system. Yet as new payment tools and channels become available, banks need to focus on developing technology solutions. One of these solutions is called tokenisation, which is paving the way for developing the user experience by improving and making payments more secure. It does this by safeguarding payments across mobile virtual wallets, as well as in-app, in-store and online payments. It can also support new forms of payments and channels, such as wearables and other devices connected to the Internet of Things.
Today, HPS helps 450+ customers in over 90 countries to deliver simple, seamless and secure payments solutions. To know more about HPS solutions, and discover HPS customers’ accomplishments with PowerCARD, please contact sales@hps-worldwide.com.
