The payments industry is growing more complex as emerging technologies and changing customer expectations spur disruption. As customers adopt a digital-first, personalized payment behavior, bank’s long-held consumer assumptions face challenges like fraud protection, technical integration, omnichannel payment systems, and high processing fees.
As we rapidly move towards "digital-living" in the third wave of digital, known as Digital HyperExpansion, the digital payments landscape continues to diversify. This is evident by the emergence of new digital payments products and services such as cryptocurrencies, e-payments, micro-lending, crowdsourcing, and payment platforms.
The digital payment industry is pivotal for banks and financial institutions to maintain a strong CX by transforming their payment processing, remaining relevant for their customers, and protecting themselves from the value chain's disintermediation risks. Payment providers are increasingly using the power of digital to create customer-centric models. This has created an effective third-party marketplace, accelerating innovation in the payments market.
The infographic below presents an overview of payments technology industry and explains why it is a critical competency for business that are urgently moving beyond digital transformation and adapting to Digital HyperExpansion.