Intro to Online and Mobile Payments: Webinar Recap
On September 8, we held a joint webinar with IXOPAY – Introduction to Online and Mobile Payments. It was an exciting one-hour seminar in which we covered important payment topics ranging from the first proper P2P payment, over recent payment initiatives to new challenges arising.
Below we have summarized the discussions and key points for everyone that could not attend.
The evolution of payments
In one form or another, payments have been around since the stone ages. Today, the underlying principles of trust and guarantee still act as the basis for payments, including online and mobile.
While new schemes, such as card payments, and innovative companies have entered the market, the fundamentals of how payment works have not changed much since introducing the 4-party banking infrastructure. Due to recent innovations, even existing market leaders such as PayPal or Mastercard are challenged. Innovations like Apple Pay, Google Pay, or WeChat are now dominating the daily life of billions of people around the world, essentially making them the gatekeepers for acceptance of payment systems.
How will you pay in 10 years?
Similarly, we see established banks getting pressured into change and innovation through the market. While bitcoin started as a means for anonymous P2P payments, government-issued digital currencies are bartered to replace physical cash and other means of payments in the not so distant future.
How can banks gain new market shares?
Similar offerings with opposing strategies: A closer look at Adyen and Wirecard
While both companies have teams of competent and smart people and offer very similar services, the main differences between these two (former) market leaders can be seen right at the inception. Whereas Adyen has built a strong customer base through organic growth and inhouse technology, Wirecard has taken on an aggressive growth and sales strategy focusing on M&A combined with high-margin and medium risk clients.
What are the success criteria for payment heroes?
Although we now know that Adyen’s lower-risk approach is much more sustainable, the occurrences around Wirecard have taught us that even DAX companies can fail. So, how do we protect ourselves, and what can we expect in the future?
- Innovation is crucial and unavoidable! Some initiatives we expect to see: NFC, invisible payments, contactless commerce, and super wallets
- Always have a backup! If your company relies on a single source strategy, it fears severe risks when your selected partner will go out of business or has even short outages.
The payment landscape is a jungle
Although it is crucial for merchants and marketplaces to reach a global audience, this global reach also emerges new challenges. A significant contributing factor to success is the selection of the right payment methods to offer. Every country has its preferred options, but catering to each and everyone’s wants can also bring about a whole new set of challenges:
- Technical complexity
- Commercial and legal complexity
- Operational complexity
To overcome these challenges, merchants need a provider-agnostic technology layer, meaning a payment orchestration platform (POP). In short, this additional layer provides you with abstracted payment services while hiding the specific complexity each integrated payment method brings. A POP will allow you to:
- Add new payment methods almost instantly and whenever you want
- Have several backup options in case one of your providers experience an outage
- Optimize back-office processes and therefore focus on your core business