What Does 2020 Hold in the World of Electronic Payments?
From the Apple Card to Libra, electronic payments were heavily revolutionised in 2019, so what might 2020 hold in store for digital payments?
Below Douglas Blakey, editor at GlobalData Electronic Payments International, considers the key changes ahead.
Among the most notable product launches of 2019 was the Apple Card. It was notable not just for the hype it generated. The card also features the natty feature of no card number, signature or expiry date.
Any 2020 forecasts have to include the call that we can expect to see more of the same. There is huge potential for the popularity of virtual cards to soar due to the peace of mind given to consumers by way of increased security.
A second prediction is a little riskier and that is a tad less political uncertainty in the UK. It may be a little optimistic to make similar forecasts in other markets, such as Hong Kong, Chile and Venezuela. But in the UK, a decisive Conservative general election victory may clear some of the fog. The payments sector will take in its stride the likely rise in the value of a currently undervalued sterling.
Strong customer authentication
A third forecast relates to AI and machine learning. Expect more investment in real-time transactional data analysis to uncover potential criminal activity.
We will hear plenty more about how strong customer identification will play a crucial role in reducing occurrences of fraud in payments. As the staggered rollout of 3DS 2.0 continues, ahead of full compliance with PSD2 in March 2021 there should be plenty of positive news stories about success in fraud prevention.
On a similar theme, Secure Remote Commerce will allow the sector to rethink the online checkout. It removes the need to type card details manually and replaces the card number with a token.
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Open Banking still to show its potential
Next up, faster payments. Safe 2020 forecasts must include the expectation of many a breathless press release about an explosion in faster payments.
And then there is Open Banking. 2019 was meant to be the year that Open Banking took off. The kindest summary would be that it has yet to show its full potential. But in an effort to be upbeat about Open Banking, expect to see a significant increase in the adoption of the payments side of Open Banking in 2020.
Finally, a word on regulation. It is safe to forecast further acceleration towards consolidation in payments. One of the best examples is the roadmap to the Eurosystem Single Market Infrastructure Gateway promoted by the European Central Bank.
