Summer is here! The phrase conjures up thoughts of holidays, serene beaches, sunscreen, watermelon, and flip-flops. As you’re lounging in the sun by the seaside, we’ll catch up with your reading list to prepare for arguably the busiest quarters of the year ahead. We’ve compiled our top reads on payments industry news, alternative payment methods, payments security, and a glimpse into the eCommerce market around the world. Oh, and don’t forget to bookmark the list.
What’s new in the payments industry
Stay on top of all global payment news and innovations with us in all things payment systems and changing regulations, consumer behaviours, fraud prevention, etc. Below are some key updates within the payments card market:
- Maestro is switching to Mastercard – what's changing: The credit card provider and card scheme Mastercard will replace its Maestro card brand with Mastercard Debit across Europe from 1st July 2023. Issuers won't issue new Maestro cards beyond this date, but all existing ones will remain valid until they’re expired.
- Mastercard is phasing out magnetic stripes: Mastercard will cease issuing debit/credit cards with magnetic stripes in the next decade, as consumers are vaulting toward more modern and secure options like chip and pin and contactless payments. As of 2024, newly issued payment cards across Europe will not need the magstripe – the same applies to cards in the US from 2027.
Alternative payment methods (APMs) are here to stay
The appetite for digital, mobile-centric payments continues to surge. The switch to eCommerce has intensified customer need for a wider and more advanced range of payment options while cash use further stagnates in most developed economies. Nearly all the respondents (97%) in a survey carried out by Pwc agreed that consumers will pivot towards more future-ready, real-time payments, such as digital wallets and buy now pay later (BNPL) solutions.
As our research reveals, bank transfers are gaining ground in Japan with PayEasy accounting for 44 million transactions in 2020. Statista also observes the prevalence of bank transfers in Europe, as Germany recorded 6.8 million transactions in 2020, followed by France with 4.4 million transactions and Poland with 3.5 million transactions (read more about other APMs and the benefits cross-border merchants can reap by localising their processing capabilities here).Payment security is at the front of mind
According to Finextra, a changing payments landscape signals regulatory evolution, rendering cybersecurity a vital ingredient to a smooth customer journey. In our article, What is Visa RDR (Rapid Dispute Resolution), we identified how merchants can deal with chargebacks for an improved and secure cardholder experience.
By automating the dispute resolution process, Visa RDR service can help merchants better manage and monitor chargebacks, protecting the merchant and optimising the cardholder experience. A BRC report highlights that 90% of merchants state that “cardholder abuse of the chargeback process” could jeopardise their organisation’s longevity. Visa RDR can prevent disputes from becoming a chargeback and negatively impact their business, as the service will contact the cardholder’s issuer to automatically debit the merchant’s account and initiate a refund.
Painting the eCommerce landscape in every corner of the world
The retail industry has witnessed an explosive boom in online sales with no signs of tailing off. Data from Statista uncovers that the global eCommerce market hit $4.9 trillion in 2021 only to likely leap by 50% to $7.4 trillion in 2025. Our recent report, Global Payments Outlook 2022, unpacks all the payments and eCommerce data across five regions you need to know, highlighting how businesses can engage new customers worldwide and maximise profit margins.
Further reads
We’ve thrown in the reading mix a few extra digestible pieces for good measure.
- Technology, disrupt thyself: Automating business operations: A new survey by McKinsey uncovers that seven in ten (70%) respondents report their organisations are piloting automation technologies in one or more business functions, unravelling the effects, benefits and best practices for scaling automation technologies efficiently.
- Harnessing mobile payments for customer convenience in the MENA region: PYMNTS uncovers that United Arab Emirates (UAE)-based payment FinTech Spades launched a web-driven solution offering a service that enables dine-in restaurant guests to pay bills easily by scanning a QR code on the table or tapping to pay — without the need of registration or downloading any app on their phone.
- Risk and fraud management made easy with Cyber AI: Detection and protection against sophisticated cyberattacks are becoming harder. Businesses start to seek refuge in AI resources to sustain a more proactive, resilient security stance. Cyber AI can be a driving force for businesses not only to react faster than their attackers but also to preclude any malicious activities ahead of time (Read more about this tech trend in Deloitte’s article).
- Did you know that payment leaders in the UK and Germany across various verticals including airlines, travel, hospitality, online retail and gambling could recoup millions in revenue if they optimise their payment strategy? Check out our latest whitepaper, The Great Payments Transformation, for more.
Take a look at our infographics, where we explore ways payment leaders can enhance their payments performance and overcome pain points in:
No matter if you're soaking up sun rays by a tropical beach or you find yourself in a well-ventilated office, we hope our recommended reads educate and inspire you to optimise and future-proof your payments strategy for sustainable business success. Happy reading!
Curious to know how you can heighten your risk management, streamline your payment flow and boost sales? Contact our payment experts today.