07 Feb FOUR PAYMENT TRENDS THAT WILL BE MAINSTREAM IN 2020

Disruptive change will continue to affect many industries in 2020, and the payments space is no exception. Although banking and payment services have seen sweeping change for some years already, the PSD2 implementation promises to further accelerate their evolution. 

Here are four current trends that will continue to shape the payment landscape this year:  

Non-cash transactions  

Globally, non-cash transaction volumes are set to rise at a rate of at least 14% until 2022. [1] However, their growth rate is expected to be higher across the EU, where tighter rules to fight tax fraud and shadow economy are being put in place. In fact, cash payments in retail are expected to decrease to 60 percent by 2020 in Europe. [2]  

The enormous potential of digital payments combined with open banking and instant payments is further contributing to their growth. [3]  

The economic value of the transactions via MyBank, the pan-European payment solution  that  allows users to shop and pay online via immediate bank transfer through their internet banking,  for example, grew by 50% in just over six months and reached more  than EUR 15 billion in terms of total transaction value in 2019.   

Seamless Payments at Millennial Speed 

Millennials expect better, faster, more memorable service than previous generations: not only those born between 1982 and 2000 expect a seamless online and mobile payment experience, but they also expect retailers and brands to process payments and returns as quickly as possible. [4]  This is why the adoption of e-payment solutions like MyBank is crucial for e-commerce businesses that need to meet Millennial customers’ needs. 

M-Banking 

An already pervasive trend, mobile banking will play an even greater role this year. Increasingly, consumers want to manage their payments through their M-Banking app. According to Business Insider Intelligence’s Mobile Banking Competitive Edge Study, a massive 97% of millennials indicated that they use mobile banking.  

The rise of M-Banking will contribute to a growth in the popularity of account-based payments and account-based access tools ensuring a frictionless transaction, such as MyBank.  

Data Protection and cybersecurity  

With e-payments booming, e-security is taking center stage, and so are privacy and users’ data protection. Much has been and is being done in Europe to ensure a secure, stable and reliable environment for digital payments : 2019 has seen the implementation of PSD2  Authentication Requirements, including Strong Customer Authentication (SCA)  that became mandatory in September. [5]  

With cybersecurity and data protection becoming critical success factors, fully PSD2, AML and GDPR compliant e-payment solutions  like MyBank are a valuable asset for e-retailers. 

Conclusions 

The world of payments as we know it is fast evolving, and will continue to change in 2020. Digital economy means a growing number of digital consumers, who need and expect secure, frictionless and fast payments anywhere and at any time. 

At the same time, digital consumers are increasingly aware of the need to protect their private data and only trust reliable payment channels. 

Therefore, e-payment solutions like MyBank are able to meet consumers’ needs and help e-businesses to keep up with the changing payment trends and the latest regulations. 

[1]  https://www.capgemini.com/wp-content/uploads/2019/11/Payments-Trends-Book-2020-1.pdf

[2] https://www.statista.com/statistics/441766/cash-money-transactions-retail-sector-europe/

[3] https://www.capgemini.com/wp-content/uploads/2019/11/Payments-Trends-Book-2020-1.pdf

[4] https://www.accenture.com/us-en/insight-outlook-who-are-millennial-shoppers-what-do-they-really-want-retail#block-about-the-research

[5] https://mybank.eu/en/digital-payments-and-psd2-strong-customer-authentication-becomes-mandatory/