Payments
gets personal
How to remain relevant as
consumers seek controlIn the aftermath of the COVID-19 crisis,
the tempo of change in consumer
behaviors and expectations has hastened.
Geopolitical shifts, accelerating digitalization
and significant economic turbulence are
reshaping how people pay and move
their money. At the same time, the friction-free
experiences offered by social and e-commerce
platforms are setting new benchmarks for
consumer payments. With economic volatility
growing, consumers are seeking more control
over their payments choices.
As payments methods continue to
evolve, consumers want to pay anywhere,
anytime, anyhow. However, the payments
Staying landscape is becoming increasingly complex
and fragmented with innovative digital payment
ahead in anproviders taking a much larger share of wallet
at the expense of traditional providers.
increasinglyOur new report identifies ways leading banks
and payments players can increase their
complex gamerelevance in the consumer transaction journey
and capitalize on future innovations.
2 Payments Gets Personal | Introduction Next-generation consumer payments are among their biggest frustrations. Payments leaders can get an edge
have been growing at a rapid rate due Payments providers need to offer by supporting their customers’
to changes in consumer behavior, frictionless experiences or risk desire for more control and less
advances in technology and regulation, losing customers to players that friction in their payments experiences.
and the entry of innovative new offer more flexibility, speed and They have an opportunity to position
players into the payments space. ease of use.their brands front-and-center in
Rising inflation and higher interest payments once again. In addition,
rates are also changing the dynamics Furthermore, while consumersthese players can maximize payments
of the market as consumers look to trust their banks more than other liquidity and transaction volumes to
reduce costs. payments players, they are open to ensure growth and profitability in a
novel ways to pay. Indeed, a third of higher interest rate environment.
ExecutiveAn Accenture survey of 16,000consumers that use credit cards as
customers in 13 countries their primary payment method for Leading banks will not only enhance
summary:spanning Asia, Europe, Latin America in-person shopping are considering their relevance and drive revenues
and North America found that more or are willing to switch to alternative from new products, but also create
than half of all consumers have payment methods. Half of them plan opportunities to offer value-added
Capitalize on adopted digital payment methods to switch to non-interest-charging services and revenues that cement
such as digital wallets, many of methods as they seek to reducecustomer trust and drive higher levels
consumerwhich displace banks’ brands debt interest. of engagement. New market entrants
from the customer experience.such as fintechs and bigtechs, too,
demand Traditional payments methods still An Accenture analysis suggests that can unlock opportunities to drive
dominate most markets, but next-gen card-issuing banks that take a timid revenue growth and closer
for trusted, alternatives are rapidly gaining share. approach to payments innovation customer relationships through
could lose out on 4.6% of total global frictionless payments.
friction-free Our survey found that consumers card and online payments revenues,
are frustrated with current in-person or $89 billion, in the next three years.
experiences and online payment options. Conversely, banks that rethink their
Slow transactions, failed payments strategies and capitalize on consumers’
and a lack of merchant support for trust in their stability and security could
their preferred payments options expand revenues and market share.
3 Payments Gets Personal | Executive SummaryThe future
is digital,
even for
face-to-face
payments
4 Payments Gets PersonalNext-gen payment methods are gaining share
Traditional payments methods still dominate the consumer payments When we asked consumers which next-generation payments they use at
landscape, with our survey showing high usage of cash, debit and least five times a month, we found that 56% use digital wallets, 10% use A2A
credit cards. However, next-generation offerings such as digital wallets, payment apps and 6% use BNPL. Many of these and other innovations were
account-to-account (A2A) and buy now, pay later (BNPL) are rapidly created by new market entrants such as fintechs and bigtechs in response to
gaining share—and more disruption is incoming from biometrics,emerging and unmet consumer demands. Incumbents thus face both a rising
machine-to-machine and metaverse payments. threat and a budding opportunity.
Figure 1. The payments landscape yesterday, today and tomorrow.
Past PresentFuture
Cash, Card, Check Cash, Card, Check, E-commerce, Cash, Card, Check, E-commerce,
Digital wallet, Account-to-Account, Digital wallet, Account-to-Account,
BNPL, Crypto BNPL, Crypto, Biometric,
Machine-to-Machine, Metaverse
5 Payments Gets Personal | The future is digital, even for face-to-face payments