We’d like to hope 2018 is ready to bring on a trend less disturbing than the Tide Pod eating challenge. Although new trends in payment technology are less likely to have the same online “viral” impact – they certainly have a broad impact on how everyday consumers make their purchases and how business owners are choosing their latest payment technology.
In their recent report, 10 Mega Trends Driving The Future of Payments, Accenture speaks to the up and coming payment and banking trends based on data from their 2017 North America Consumer Payments Pulse Survey of 1,500 consumers in the United States and Canada. “From digital disruption and the race to innovate to regulatory requirements and customer demands, traditional payments players are being squeezed from all sides. The pressure will not let up,” the report boldly claims.
At NTC Texas, we take great pride in staying ahead of payment, banking and technology trends – always offering our clients the most cutting edge payment products. We wanted to address some of these Mega Trend predictions and how they will affect businesses in 2018.
Generation Z Rising
The first trend addressed in the report, and rightly so, is absolutely the most relevant to how everything is evolving in the world – not just payments. Let this sink in: According to the report, “One-third of Gen Z consumers want to share their payments on social media while only three percent of Baby Boomers would.” With such a MEGA gap in technology behavior, businesses have to understand their target markets better than ever before. Where does your clientele fall on this scale? And how do they prefer to pay? What is the most convenient method for them and is your payments provider giving you the tools to accommodate them?
UX (User Experience) Is The New Gold
Coming in at a well -deserved second, we have also seen the glaring truth in this trend, and how much weight user experience holds in customer retention. Aside from user experience in a technology interface, user experience as it relates to customer service and troubleshooting is just as, if not sometimes more relevant. Accenture’s report claims, “The ties that bind customers to traditional payments players are fragile at best.” This statement is true, in the sense that payment providers are now tasked with offering a better, more personalized financial services experience.
Fraudsters Innovate Too
Coming in at trend number nine, this trend is NOT one to take lightly. As you frantically try to keep up with new payment technology, apps and regulations – fraudsters are ten steps ahead. Cybercriminals are hacking away at up and coming technology features often before they ever even hit the market. This makes the fight against cybercrime and hacking a challenging one. Business owners are strongly advised to choose a payments provider that is avidly talking about security and fiercely working to protect its clients.
Rip and Replace Required
Aka – toss out and start over, this trend makes complete sense to all of us working in the financial industry. The days of waiting days for payments to clear, transactions to process and business to happen are long gone. The financial industry has a long way to go before they finally “get” this idea of on demand business, but any major payment provider in the industry not funding and responding quickly is dead in the water. As a result, this is requiring many major players to do just that – rip and replace.
Our team at NTC Texas is pleased to see our goals and infrastructure working in line and in many cases ahead of many up and coming payment industry trends. To check out the remaining trends and Accenture’s full report click here.