Payments are becoming increasingly invisible, a development that presents major challenges for established financial service brands as they struggle to keep up with changing banking behaviour and rising customer expectations.

The future of payments is the topic of the August issue of Admap, published today.


In it, Richard Yao, senior associate of strategy and content at IPG Media Lab, highlights the advance of digital payments and the “platformisation” of mobile payments which brings with it the threat of disintermediation for existing financial brands.

“As mobile payment apps become all-encompassing service portals, they take control of the user experience and hijack the customer relationship that banks and credit card companies used to own.”

Yes, consumers still need a bank account or credit card to sign up for most digital payment services, Yao acknowledges. “But losing your direct consumer touchpoint and ceding control over the customer experience spells trouble for any consumer-facing businesses,” he warns.

Added to that, “card-on-file” payment is shaping the user experience design across industries by making payments invisible – one reason taking an Uber is simpler than hailing a regular taxi – a trend that will accelerate with the growth of subscription models and the internet of things.

In How to survive the escalating digital payment revolution: What financial services need to do to adapt and thrive, Yao argues that banks and financial services will need to negotiate with digital platform owners to add some brand identifiers into the mix in order to reassert their brand presence.

These could take the form of a unique visual or audio cue when one completes a mobile payment with a certain credit card, he suggests, or better tools to help customers manage things like recurring subscription payments.

A better mobile app experience will be required to counter the digital wallet offerings from tech firms and start-ups, while voice and AI-driven solutions also should be considered.

Better integration of banking into other digital experiences opens up new opportunities, Yao adds, while the move away from cash also raises questions around the future use of ATMs.

“Banks are the natural owners of the payments space,” he observes. “This escalating payment revolution is the perfect time for banks and financial service brands to redefine and deepen their relationship with customers.”

This issue of Admap on the future of payments features articles by thought leaders from across the globe. WARC subscribers can access a deck which summarises the expert advice from contributors and key considerations on the topic.

Sourced from Admap