Are You Ready for the Next Phase of the Payment Revolution?

March 12, 2017     By : Azma Farhana

In this new era of technology and globalization, almost everything can be solved. From communication, information and even payments – it’s amazing how everything revolves around us. Not so long ago, large parts of the population, especially those residing in rural areas, used to store their savings in cash; however, with the arrival and availability of ATM machines, people thought it was great to have facilities like on-demand cash, security etc. Due to the dynamic changes in technology, people’s demands and behaviors have also changed. As a result, the population at large expect technology to be more sophisticated and better suited to serve their needs with every passing year.

Today, a smartphone gives you many ways to handle one’s daily activities, especially for payments. Contactless payment methods are growing and seem to attract many Asian consumers from China, Singapore, the Philippines and Indonesia.

Security, Control and Compliance

Since it is now common to pay through a smartphone, people expect a financial institution to make sure all contactless transactions being made are 100% secure. Consumers are always keen on finding a safer way to handle their transactions and hold banks accountable when it comes to complying with keeping their information safe from attacks.

Introduction of PSD2

That is why by January 2018, banks must consent to the EU’s second Payment Services Directive (PSD2). To make it simple, PSD2 empowers bank clients, both buyers and organizations, to utilize outsider suppliers to deal with their funds. Sooner rather than later, you might utilize Facebook or Google to pay your bills, making P2P exchanges and break down your spending, while as yet having your cash securely put in your present financial balance.

Banks are committed to giving these outside suppliers access to their client’s records through open APIs (application program interface). This will empower outsiders to fabricate monetary administrations on top of bank’s information and foundation

At last, we are entering the advanced time of payments, where the controllers are compelling for computerized change through changes. For example, PSD2, which influences all aspects of the payment value chain.

In any case, if banks give all their utmost efforts in competing, they could probably offer new, inventive administrations, which could drive many benefits. Banks have a one-of-a-kind chance to play each role of the bank, Payment Initiation Service Provider (PISP) and Account Information Service Provider (AISP).

Seek and grab the chances!

PSD2 plays an important role in the creation of profit for banks to open new businesses instead of solely taking responsibilities as a compliance. On the other hand, banks have the chance to utilize PSD2 to sustain their good fortune and look for organizations to develop rapidly. Other than that, it only requires little to no effort, to compete with startup businesses.

The changes and revolutions of technology are promising for the eventual fate of keeping money and getting the nuts and bolts right will enhance every client’s saving money involvement over the long haul. In any case, banks and money-related foundations mustn’t lay on their trees lightly. Progressions likewise mean the higher doors are opened for new market participants.

Be creative

Thus, as technology gets innovated every day, any financial institution should be creative and effective to pick up the speed of digitalization. At the same time, they must be steady and strong. A key factor of becoming a successful company is to plan properly in details from the beginning. With strategic planning and preparation, any company will surely move on a right track and secure their businesses.