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1、Five Critical Payment Lessons from The New EconomyA report from Kapronasia in collaboration with BPC June 2022ContentsExecutive Summary 2Key Findings 3Introduction 4Lesson One:Focus on the customer experience 6Lesson Two:Be where the customer is 10Lesson Three:Those that adapt survive and thrive 13L

2、esson Four:Security is still everything 16Lesson Five:Data is the new money 18Conclusion 21Methodology Kapronasias Five Critical Payment Lessons for The New Economy report is based on both primary and secondary research.Secondary Research:Sources included but were not limited to,market intelligence

3、reports and studies by industry experts and professional services networks,white papers,educational materials,media articles,and marketing collateral.Primary Research:Interviews were secured from relevant players across the ecosystem,including financial institutions,fintechs,and industry experts.2Fi

4、ve Critical Payment Lessons for The New EconomyExecutive Summary Digital transformation in the financial services industry(FSI)is proceeding at a rapid pace,driven by intense competition from new players entering the market,the evolution of customer expectations,regulatory pressures,and Covid-19 whi

5、ch by itself has accelerated the digital transformation process by two to three years.Payments are no exception and have been similarly targeted for digitalization,largely because of the same factors.Payment players are facing the same pain points in the market as the FSI as a whole,namely fickle cu

6、stomers;the challenge of delivering a consistent customer journey across multiple channels and often in someone elses value chain;and enormous pressure as a result to be agile and to respond quickly to changes in the business and operating environment.These changes include an increase in cybercrime

7、and downward pressure on margins as payments increasingly become faceless and invisible.How are payment players meant to respond to such an unforgiving terrain?Through interviews with digital banks and wallets,FinTechs,online(payment)platforms,and incumbents as well as a significant amount of second

8、ary research,the answer can be distilled from five critical payments lessons:Focus on the customer experience Be where the customer is Be adaptable to a rapidly changing marketplace Be secure against critical threats,and Effectively monetize your consumer data to provide hyper-personalized financial

9、 value-added services delivered contextually While on the surface these lessons may seem trite and obvious,as the report digs into each of the five lessons in turn,readers will note just how nuanced each of the lessons is and ultimately,how interconnected they are too.Focusing on the customer experi

10、ence means staying relevant and being where your customer wants to transact,with the right services,at the right time and delivered in the right way,while also staying safe and secure.To do that effectively requires agility which means having the right infrastructure purposefully built for change.It

11、 also means having the right data and the right tools to draw insights from that data and to act accordingly,be that to be more secure or to offer the right hyper-personalized value-added services.Payment providers who are able to successfully take these lessons on board and understand how they each

12、 contribute and combine to delivering the end-to-end customer journey will be best equipped to navigate the difficult and shifting environment that defines the new digital reality.3Five Critical Payment Lessons for The New EconomyKey FindingsFocusing on the customer experience involves thinking abou

13、t all stakeholders,not just the end user and it also means staying relevant by engaging with your customer and providing them with the right services specific to their needs.Be where your customer is and iterate quickly on improving the customer experience while adapting as channels evolve.This incl

14、udes embedded payments which are also moving into hardware applications.Payment providers need to be agile to respond quickly to changes in the marketplace.This requires an appropriate architecture to enable them to consume and/or provide as-a-service offerings and collaborate effectively with partn

15、ers in the payment ecosystem.Trust is everything.Payment players must excel at building trust with their users and underpinning that trust with the necessary security measures.The real value for payment providers comes increasingly not from the transactions themselves but from the data generated fro

16、m those transactions.Players that are able to harness more granular data points to allow for better customer segmentation enabling more targetted financial value-added services will gain a competitive advantage.All five lessons are interrelated,with a robust API platform being the key enabler that o

17、ffers payment providers the agility to collaborate with a wide range of partners offering the right services,at the right time,in the right place in a secure and safe way.4Five Critical Payment Lessons for The New EconomyIntroduction1 PwC,“Payments 2025&beyond,”https:/ FIS worldpay,“The Global Payme

18、nts Report 2021,”https:/ confluence of factors is coming together to drive digital transformation across the financial services industry(FSI).These include relentless competition from new digital-first players entering the market;a fickle retail customer base that expects personalized products and s

19、ervices to be delivered seamlessly,anytime,anywhere;tighter regulatory oversight putting downward pressure on margins;and of course,Covid the pandemic which has accelerated the whole process by two to three years,as branches closed,and financial institutions(FIs)had to find new ways to serve their c

20、ustomers.Payments,a microcosm of the FSI,have not been spared.The same forces driving digital transformation in the FSI are also driving digitalization in payments.Global cashless payment volumes are set to almost triple by 2030.Asia-Pacific will grow fastest,with cashless transaction volumes increa

21、sing by 109%from 2020 to 2025 and then by 76%from 2025 to 2030(see chart below).1As consumers in APAC shift from point of sale(POS)to e-commerce they are also shifting payment preferences to digital methods,with digital and mobile wallets gaining in popularity.By 2024 digital wallets are projected t

22、o account for 65.4%of APAC e-commerce payment methods up from just over 60%in 2020.At the POS too,payment methods are undergoing a dramatic change away from cash and toward mobile wallets.By 2024,cash is projected to represent only 10.8%of transactions,while mobile wallets will grow to represent 47.

23、9%of POS spend by that time.2As we continue to journey into the new era of digital payments,incumbents,digital banks,fintechs and payment service providers(PSPs)are struggling against the same challenges in the market as the financial industry in general.18 CHARTS Figure1 Note:Cashless transaction t

24、otals for 2025 and 2030 are projections Source:PwC Strategy&global payments model,2021 Figure2 Note:Alternative payment methods include payment solutions from big tech,telecoms and retailers outside or on top of traditional bank and card payments.Revenue figures for 2025 and 2030 are projections Sou

25、rce:PwC Strategy&analysis 4941,0321,81859105172229375522731111651802583491,0351,8823,026202020252030Cashlesstransactionvolumewillmorethandoubleby2030NumberofcashlesstransactionsinbillionsAsiaPacificAfricaEuropeLatinAmericaUSA/CanadaTotal82%Growth61%Growth561447342313188782121671411259871845742262217

26、Changesinrevenuepoolsfrom2020to2030TransactionalrevenuesinUS$bn202020302025BanksAlternativepaymentmethodsMerchantserviceprovidersCardnetworksThirdpartyprocessorsTerminals5Five Critical Payment Lessons for The New EconomyFirstly,there is now a relentless focus on the customer journey,with both mercha

27、nts and end users expecting payments to be frictionless,seamless,and increasingly invisible.Secondly,payments are becoming embedded and are increasingly being integrated into physical hardware,which can make it difficult for payment providers to provide that seamless customer experience across third

28、-party channels.Thirdly,fierce competition,changing customer expectations,tighter regulatory oversight,and the rise of collaborative ecosystems are putting pressure on payment providers to become more agile and adapt quickly to developments in the marketplace.Fourthly,as money has gone online,crimin

29、als have followed.With cybercrime on the increase and stories of data breaches proliferating in the media,trust is everything.If customers do not feel safe and secure,they will shun your products and services.Finally,customers now expect relevant hyper-personalized services delivered to them context

30、ually.Payment providers are asking themselves how to effectively serve the segment of one?As new banking and non-banking financial institutions(NBFIs)enter an already crowded market(see chart below),distilling the reasons for success can provide some key lessons for market participants.This research

31、 paper distills five critical payments lessons that we can draw from companies that have been successful in the payment space.Understanding these lessons is crucial for banks,card companies,fintechs and others that want to map a new path forward.By focusing on the customer experience,being where the

32、 customer is,being able to adapt,remaining secure,and monetizing consumer data,companies can make outside returns despite being in an incredibly competitive and shifting market.18 CHARTS Figure1 Note:Cashless transaction totals for 2025 and 2030 are projections Source:PwC Strategy&global payments mo

33、del,2021 Figure2 Note:Alternative payment methods include payment solutions from big tech,telecoms and retailers outside or on top of traditional bank and card payments.Revenue figures for 2025 and 2030 are projections Source:PwC Strategy&analysis 4941,0321,81859105172229375522731111651802583491,035

34、1,8823,026202020252030Cashlesstransactionvolumewillmorethandoubleby2030NumberofcashlesstransactionsinbillionsAsiaPacificAfricaEuropeLatinAmericaUSA/CanadaTotal82%Growth61%Growth561447342313188782121671411259871845742262217Changesinrevenuepoolsfrom2020to2030TransactionalrevenuesinUS$bn202020302025Ban

35、ksAlternativepaymentmethodsMerchantserviceprovidersCardnetworksThirdpartyprocessorsTerminals6Five Critical Payment Lessons for The New EconomyLesson One:Focus on the customer experience3 Capgemini Research Institute,“World Payments Report 2020,”https:/ defining characteristic of the new digital era

36、is that payment businesses can no longer exist as standalone entities.Driven by rapidly evolving customer expectations and innovative new digital business models,to survive,digital banks,incumbents,fintechs and PSPs must belong to ecosystems where payments will be a mere component part of the end-to

37、-end customer journey.Ensuring a good customer experience is at the heart of any successful business,but what makes this harder today is that with the rise of multiple players being responsible for delivering the end-to-end user experience,it is now up to payment providers to seamlessly integrate th

38、eir offering as an intrinsic part of the end-to-end customer journey.Meeting the expectations of both the commercial customer as well as the end-user.What are those expectations?Commercial customers expect bank and payment partners to enable greater sales by improving the end-customer experience and

39、 the adoption of new business models.Covid has only accelerated the trend.When offline retailers were suddenly faced with a precipitous drop in footfall,payment partners became critical in helping their retail customers with online marketplace onboarding.Likewise,with consumers tightening their belt

40、s amid the uncertainty,Buy Now Pay Later(BNPL)offerings were viewed positively by retailers as it led to an increase in overall basket size value and conversion rates.Payments,in other words,are now about a lot more than just moving money and managing cash flow.Consumers,for their part,expect conven

41、ience,speed,and seamlessness,with payments now moving into the background of the shopping journey.According to Capgeminis World Payments Report 2020,“technology has transformed the act of paying to,ultimately,make it invisible,as end users expectations evolve from Pay to Invisible Pay.”Consumers als

42、o expect additional value-added services,such as BNPL and insurance,whilst conducting commerce.The same report talks of service providers transcending three transformative stages Abide,Adopt,and Adapt to bolster their customer engagement.According to the report,“adaptive firms engage fully within th

43、eir customers payments journey and offer value propositions beyond payments.”3 Customer engagement is the key here.With payments becoming increasingly invisible,payment providers cannot afford to simply digitally execute the transaction.They need to become a lot more engaged with their customers if

44、they want to remain relevant and more than just a commoditized feature in the overall journey.Knowing your customer not only enables the end-to-end transaction to be completed in a relevant manner,but it also enables payment providers to offer tailored additional services that will drive revenue and

45、 help them to integrate into their customers lives.Case studiesTNG DigitalReal life examples are able to highlight some of the nuances when it comes to thinking about the customer experience in the digital era,particularly when observed from some distance.Alan Ni,COO,CPO&Financial Services Business

46、Head,at TNG Digital(TNGD),the company behind one of Malaysias largest wallets,Touch n Go eWallet,explains that balancing the different parties within the payments ecosystem is critical.Mr.Ni says,“acquiring customers and merchants is expensive.If customers feel that they do not have enough places to

47、 spend their money or if merchants feel there are not enough customers using the service,that is the worst customer experience you can have.For both merchants and users.You are going to lose them very quickly.”7Five Critical Payment Lessons for The New EconomyTo overcome this problem,Mr.Ni says that

48、 TNG Digital overlays the cities they cover with two-kilometer square boxes like a chessboard.With GPS location tracking they can see how many merchants and customers they have in each box.If there are too many merchants and not enough customers,they will run customer acquisition campaigns.If there

49、are too many customers and not enough merchants,they will go street by street to acquire more merchants in a particular area.New Payments Platform AustraliaKatrina Stuart,Head of Engagement at New Payments Platform Australia(NPPA)Ltd,the company that operates the real-time account-to-account payment

50、s infrastructure in Australia,echoes Mr.Nis sentiment about the importance of developing the network effect.NPPA has been working with the financial services industry to develop PayTo a digital way for businesses to initiate real-time payments from customers bank accounts,which is due to go live in

51、mid-2022.On setting up the service,Ms.Stuart says,“we mandated that our banks had to develop certain capabilities within a specific timeframe on the payer customer side and that has helped to create that network effect,which I think is one of the biggest challenges in payments.”Ms.Stuart also echoes

52、 Mr.Nis sentiment in needing to think about the customer experience of all the users of the service,not just the end user.Ms.Stuart says,when they first started looking at the PayTo proposition,it was about enabling a better alternative to direct debits,which can be problematic from both a customers

53、 and a merchants perspective.The customer has very little visibility or control over the payments,the merchant risks being given incorrect account details and potential fraud,while the bank has no visibility into whether their customer agreed to the payment.NPPA purposefully set out to deliver a bet

54、ter experience for customers,merchants and billers by addressing the existing pain points in the market and designing a customer-centric service.With PayTo,the customer will have visibility and control over their payments and the merchant will know immediately if the correct account details have bee

55、n provided and whether the customer has sufficient funds available at the time of payment.On top of that it will be easy to retrieve the digital agreement from a centralized repository in case of any dispute.Banks will also be assured that it was their customer that initiated the payment,because the

56、 customer must authorize the PayTo agreement-once-through their banking channel.TimoHenry Nguyen,CEO of Timo,a Vietnamese digital bank also highlights the importance of the network effect emphasizing that Timo is pushing to be a social-centric bank to maintain relevancy with its customers.Elaboratin

57、g,he says,“in this day and age,whether it is Facebook,or Instagram or other things,people have all of these relationship connectivities your social capital,your social networks which define to a great extent who you are.That is what we are trying to do.We are trying to create that network effect.”He

58、 says,“the more people use Timo as a banking service,as a way to pay,as a way to remit,the more value they get as long as more people are recruited into the network.”Mr.Nguyen explains that the way they are creating this network effect is by adding Venmo-like features.He says,“if you and I are both

59、on Timo,I can give you a much richer experience when you remit or pay.For example,I can say,hey Joe,thanks for picking up lunch the other day,here is a picture of lunch and then we can have some banter.”Mr.Nguyen says that out of all these histories you can then filter just the transactions if you n

60、eed to track something.“It is being able to enrich that memo line in the remittance and today that means emojis,gifs,whatever it is that expresses something deeper in this connectivity.”Continuing,he says,“for a lot of our customers this is a joy and a pleasure because it feels very cold to just say

61、”hey,here is your 20 dollars for lunch.”He concludes,“it is those types of things where we are 8Five Critical Payment Lessons for The New Economytrying to be relevant,meaningful and also socially centric in terms of someones ability to connect with people in their world.”He provides another example

62、of Timos social centricity.“If you sign up for Timo,one of the first pieces of data we collect from you is your phone number.If your phone number happens to be in the phonebooks of 50 Timo users,we already know a lot about you.We know that at least you are a real person,who has good relationships wi

63、th these 50 people,who also happen to be great customers.So,there is a lot of data that helps to provide alternative credit scoring sources.”Mr.Nguyen says,“as soon as you onboard you know who you are connected to on Timo and you will have the option to say hello to them,or send them an emoji,or,aro

64、und New Year,send them Lai See a good example of being locally relevant,and instead of just sending a currency note inside an envelope,there is animation,there are gifs,and you can interact.You can say,“thank you Henry for your Lai See,I am Lai Seeing you back double.”Mr.Nguyen states that it is tho

65、se types of mechanisms,being relevant,being connected,being social,that Timo is trying to capitalize on.Mr.Nguyen says,“internally,we say look we can try to just copy a bank and then our only way to win is to try to steal market share,or we can do something that a regular bank or payment platform ca

66、nnot do.So let us figure out what that is.”Mr.Nguyen says,“we do all the basics,but those types of social things are going to be the winning combination for us.”RevolutThe importance of relevancy and customer engagement also resonates with James Shanahan,CEO Singapore,of Revolut,a financial super-ap

67、p that offers financial services.He explains that shortly after Revolut launched in Singapore in October 2019,the world was hit by the Covid pandemic and international travel came to a standstill.Mr.Shanahan says,“without the opportunity to travel,many of our customers found that they did not really

68、 have much use for Revolut.This posed an immediate challenge:How can we keep engaging with our customers when the main reason why they signed up for a Revolut account is no longer there?”The priority for the company was to get customers to break away from the thinking that Revolut could only be used

69、 when one is travelling overseas.In March 2021,Revolut put out a campaign where customers would receive up to 20 percent cashback on their public transport spend if they used their Revolut 9Five Critical Payment Lessons for The New Economycards to pay for bus or train fares.The campaign,which finish

70、ed at the end of 2021,was a success.Mr.Shanahan says,“embedding ourselves in an activity that is so integrated in the everyday lives of our customers is one way to encourage stickiness and engagement.”Mr.Shanahan ends by highlighting the importance of collaborative partnerships in being able to deli

71、ver innovative new products and services to the market.He says,“for any payment app to be successful,it cannot exist in a silo.It must find partners in the larger ecosystem.This will enable campaigns and initiatives to resonate more deeply with customers.”Mr.Shanahan provides the example of Revoluts

72、 Chrome browser extension called Revolut Shopper,launched in May 2021.When a customer visits an online store like Lazada,the extension alerts him/her of any cashback they can activate if they pay with their Revolut card.This,Mr.Shanahan says,“is another way to encourage customers to use Revolut as t

73、heir go-to payments method.”TonikMila Bedrenets,Chief Growth Hacker at Tonik,a digital bank with a presence in the Philippines,also highlights the importance of relevant,localized value-added services.“Stashes,”she says,is a Tonik product inspired from the idea of paluwagan in which family members,f

74、riends and colleagues jointly save towards a common financial goal.The financial management concept is already very familiar and widely practiced in the local market and Tonik just improved on its design.Ms.Bedrenets says,“we essentially digitized the process of social saving to directly address the

75、 pain points in accessibility,security and regulation to encourage more Filipinos to develop the habit of saving money.”Since their commercial launch in March 2021,Ms.Bedrenets says,“Stashes was instrumental in securing Php1B(US$20M)in retail deposits within only a month of going live,a historic rec

76、ord for us.”Ms.Bedrenets adds“Stashes has proven to be a successful case study of hyper-localizing a service to better fit the needs of a particular market.A lot of our customers have given feedback on how beneficial and even fun it was to open Stashes with their family and friends which helps to re

77、inforce the importance of saving.”The product was successful because it provided a safer and more innovative means for Filipinos to save and grow their funds.10Five Critical Payment Lessons for The New EconomyLesson Two:Be where the customer is4 FIS worldpay,“The Global Payments Report 2021,”https:/

78、 O-city by BPC,“Smart City Survey 2021:Smart cities and how they bridge real life to digital for their citizens,”Sept 2020,https:/www.o- alluded to in Lesson One,the Covid pandemic provides an extreme example of the importance of needing to be where your customer is.As lockdowns and strict stay-at-h

79、ome notices got underway in early 2020,offline retail and F&B outlets suddenly saw customer revenues drop to zero.That did not,however,mean that demand had also dropped to zero.It just meant that physical outlets no longer had a way to serve their customers.To survive,outlets had to move from offlin

80、e channels to online channels to stay in touch with their customers.It also meant that their payment providers had to offer them the means to accept online digital payments.One flavor of be where the customer is is being able to instantly offer your commercial customers a range of online payment opt

81、ions.Another example of the importance of being in the same channel as your customer is also highlighted by the pandemic.As people found themselves separated from friends,they sought ways to fill their time and ease the burdens of isolation through social media.While social commerce was already infl

82、uential before the pandemic,with Covid,“brands had new opportunities to build more momentum through product discovery via friends feeds.”4 As social commerce becomes more popular,brands will value payment partners that enable social in-channel payments.Such embedded payments are not only limited to

83、social media and software applications such as accounting tools.As smart city projects get underway,embedded payments will also increasingly be applied to hardware.According to o-city by BPCs Smart City Survey 2021,smart cities are defined as“city-wide projects leveraging a combination of technologi

84、es such as internet of things(IoT)sensors,low cost networking,and data analytics,to enable smarter city or local government management through automation and the optimization of policy or resource allocation.”5 In a nutshell,it is an attempt to leverage technologies and tools to optimize city functi

85、ons,drive economic growth,and improve the quality of life of citizens.19 Figure3 Note:Non-IoT includes all mobile phones,tablets,PCs,laptops,and fixed line phones.IoT includes all consumer and B2B devices connected Source(s):IoT Analytics Cellular IoT&LPWA Connectivity Market Tracker 2010-25 0.81.11

86、.62.12.83.64.66.181011.713.816.419.824.430.988.79.19.59.79.79.89.99.9109.91010.110.210.210.38.89.710.711.612.513.314.41617.92021.723.926.529.934.641.22010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E 2021F 2022F 2023F 2024F 2025FTotalnumberofdeviceconnections(incl.NonIoT)20.0Bnin2019expectedto

87、grow13%to41.2Bnin2025NumberofglobalactionsConnections(installedbase)inBnIoTNonIoTXx%=CAGR10%13%Data as of Nov 2020 11Five Critical Payment Lessons for The New EconomyThe emergence of smart cities and the proliferation of IoT sensors that underpin them is also transforming the digital payment environ

88、ment into an expanded version of IoT known as the Internet of Payments(IoP)the enablement of payments over IoT devices.An IoT payment platform can help consumers pay for a range of goods and services through connected devices beyond just phones or tablets.Consumers can use their cars,kitchen and liv

89、ing room appliances and watches to pay for goods.Prominent examples include Visas IoT payment solutions with sport watch manufacturer Fitbit and GPS company Garmin.6 Hondas Dream Drive that enables drivers to pay for goods and services like fuel,movie tickets and parking,make restaurant reservations

90、,and food ordering for pickup or delivery;and Samsungs Family Hub Smart Fridge that allows users to shop and pay for on-demand grocery deliveries using the Instacart App,as well as order takeout through services like GrubHub.7According to Jordan McKee at Forbes,“longer-term,the latent and more lucra

91、tive IoP revenue opportunity will be found in harnessing the explosion of new data that can provide deeper and more granular insights into customer behavior.The opportunities for new data streams generated by IoT devices and sensors are endless and will serve to bolster decision-making accuracy in a

92、reas ranging from fraud prevention to know your customer(KYC)requirements,to lending to targeted offers and recommendations.”8Case studiesGoTo FinancialGoTo Financial,part of the GoTo Group,shares some practical examples from its payment gateway solution,Midtrans,that encapsulate the importance of b

93、eing where your customer is.Pratyush Prasanna,SVP Merchant Payments at GoTo Financial says,“there was a visible shift from offline to online merchants during the pandemic.”Offline merchants 6 Avin Arumugam,“Paying with wearables:The next big thing in IoT,”https:/all- Honda,“Honda Dream Drive to Deli

94、ver Next-Generation Infotainment,Commerce,Services and Rewards to Drivers and Passengers,”Jan 2019,https:/global.honda/newsroom/worldnews/2019/C190108Honda-Dream-Drive.html;Harry Menear,“How IoT is digitally transforming payments,”Jun 2020,https:/ Jordan McKee,“The Internet of Payments Has Arrived,”

95、Oct 2019,https:/ a quick way to accept payments online.Mr.Prasanna says,“We helped by providing merchants with an easy invoicing tool as a feature in Midtrans for its merchants,which we call Payment Link.”The link sends customers to a payment page that the company hosts on behalf of their merchant c

96、lients with no website.Mr.Prasanna highlights the importance of the need to focus on the user experience and being agile.He says,“we did almost weekly iterations in order to reduce the friction for our merchants.”He says,“initially,we started off by asking the merchant to input a multitude of variab

97、les to create the link.That included things like the amount,items sold,the customers phone number and email,and the payment method supported.”Mr.Prasanna says that because merchants were vocal about the number of inputs required to create a payment link,“we reduced a lot of the parameters,requiring

98、just the amount to be inputted,while making the other details optional.”That,Mr.Prasanna says,“reduced the time to create a Payment Link from three minutes to less than 30 seconds,which is very important when you are trying to sell during lunchtime.”Another important iteration Midtrans made was enab

99、ling merchants to send the link to the customers WhatsApp instead of their email account.The emails had been getting lost in spam folders and merchants were calling up to share feedback on dropped transactions.To solve these pain points,Midtrans is customizing Payment Link so links can be easily cop

100、ied and shared on Whatsapp or other messenger apps,social media direct messages,and other channels where merchants frequently communicate with customers.Mr.Prasanna says that understanding the personalized experience of the customer was important.Merchants do not use email that often,but both mercha

101、nts and consumers use WhatsApp,he 12Five Critical Payment Lessons for The New Economysays.GoTo Financial also went from issuing the link from Midtrans,to customizing the link to appear as if it was sent directly from the merchant themselves.Mr.Prasanna says,“if a customer is ordering Nasi Goreng fro

102、m a merchant,the link will come from“,”and will include a picture of Nasi Goreng on the checkout page to provide a more holistic customer experience.It also helps to cut down fraud as the link does not take you to another page asking you to make a payment.The customer knows it is directly tied to th

103、eir purchase.”Another iteration that GoTo Financial made through Midtrans was enabling recurring payments.The company realized that a lot of their customers wanted to collect regular payments for things like milk delivery,groceries,or insurance payments.They added in a function for merchants to spec

104、ify whether or not it was a recurring payment.Therefore,instead of the merchant having to create the same Payment Link each time,they only have to create the link once and outline the frequency with which to send it to the customer.Mr.Prasanna says that it was the focus on UX and staying relevant th

105、at was the reason the service took off and ended up doing so well.He has been surprised by the number of use cases.Insurance companies are now using it for their annual bill payments,health merchants are using it for recurring payments for things like vitamins supplies,and even bigger department sto

106、res are using it for cashiers to send to customers at checkout to avoid having to handle cash or cards.The product also powers Selly,another GoTo Financial product for creating invoices that helps social sellers to grow their online businesses.TimoMr.Nguyen from Timo also provides a good be where yo

107、ur customer is case study and how that also feeds into being customer centric.He says,“our retail partnerships are truly important.We are setting up partnerships with 7-Eleven here in Vietnam.Over the next ten years,they will have thousands and thousands of locations.We are also setting up retail pa

108、rtnerships with a lot of the larger grocery stores.”Mr.Nguyen explains the rationale,“I know you go to the grocery store probably at least once,twice,three times a month.There is an in-store transaction point there for whatever you need be it a new card replacement,or cash in and cash out etc.”He sa

109、ys,“branches are the way of the dinosaur.Here you have a great app where you can get 90%of your work done and have some physical accessibility.Or,as I like to put it,if something goes wrong you need to make sure you can put hands on somebody.So being fully digital does not work either.”Mr.Nguyen ela

110、borates saying:“convenience stores are perfect partners because they are ubiquitous,they are convenient we are always looking at customer convenience,and if you need to take care of basic services such as cash in cash out,or maybe a bill payment,knowing that there is a 7-Eleven closer to you than yo

111、ur branch makes your life that much easier.”Mr.Nguyen says,“this partnership with 7-Eleven is us shaking hands with them and saying you have some economic interest in this but more importantly,we are both going to be able to benefit from this because if a customer needs to run to a Timo ATM or CDM m

112、achine they can at the same time pick up a coffee from you.”Mr.Nguyen says,“there is a nice synergy to that and then it goes back to a good fit in terms of partnership.”13Five Critical Payment Lessons for The New EconomyLesson Three:Those that adapt survive and thriveIn a rapidly evolving landscape

113、of changing customer expectations,increasing competition from new players,and new technology,the importance of being agile and being able to adapt and respond quickly to change has never been more paramount.To do so effectively requires a shift from centralized,siloed,monolithic IT architectures to

114、cloud-native/hybrid cloud,microservices-based,distributed IT architectures enabled by robust APIs.Having such infrastructure in place is the key enabler that allows players to effectively belong to larger ecosystems,either by providing a composite element in the end-to-end value chain of the custome

115、r journey and/or by consuming the services of others.In short,it allows organizations to plug and play,as providers or consumers of“as-a-service.”This shift from standalone entities to the distributed ecosystem model of collaborative partnerships underpinned by change-agile architecture is innovatio

116、n at work:adding real value to the marketplace.In payment terms,this enables digital banks,incumbents,fintechs and PSPs to outsource in whole or in part their payment stack to Payment-as-a-Service(PaaS)players.These operate cloud-based platforms providing specialized services,such as card issuing,pa

117、yments clearing,cross-border payments,disbursements,and e-commerce gateways.The FIs can then offer these services to their end customers or embed them in other value chains in third-party ecosystems,without the worry of staying compliant,technology upgrades and resilience against fraudulent attacks.

118、Outsourcing the payment stack provides flexibility,adaptability,agility,and a number of other benefits.It allows players to rapidly expand service breadth,expediting time to market and to modernize their payments product portfolio without incurring high upfront investment.FIs can mix and match to cr

119、eate a broad suite of payments services suited for their customers while also building additional services around them.Players can then continuously update and upgrade products without disproportionate maintenance investment and swap out services and incorporate new payment models more readily ensur

120、ing that their solutions always remain“best-of-breed”and at the cutting-edge of the technology frontier.It also enables scalability.As margins on payments continue to be suppressed having that scalability and/or ability to build value-added services will become increasingly critical to sustain a pla

121、yers economic viability.Case studiesVisaNat Scheer,Head of Real-time Payments,Asia-Pacific at Visa explains the journey the company went on to adapt to a changing world and maintain their relevance with their clients.The problem definition for Visa,as Mr.Scheer explains it,was how to respond to an i

122、ndustry that was changing so rapidly,where new players are coming into the market and legacy players are trying to modernize themselves?Mr.Scheer says,“it was how do we adapt with our clients and how do we survive and maintain our relevance amongst these new players?”Mr.Scheer explains,“because the

123、profile of our legacy clients tended to be large FIs,Visas traditional model was based on hard connections to partners delivering services that were tightly bound together.”However,Mr.Scheer says,“as the ecosystem was changing,where the legacy players were evolving and new players were coming in,tho

124、se hard connections that were designed for big banks and the systems and IT infrastructure that they used,were increasingly challenging our ability to deliver new services to adapt and innovate.”The solution was to build an API integration layer.Mr.Scheer says,“we created a platform which we call th

125、e Visa Developer Platform(VDP),which,in architectural terms,sits over the top of the legacy systems.”Visa then moved services that were 14Five Critical Payment Lessons for The New Economypreviously delivered through the legacy infrastructure to the VDP and exposed them via APIs.Mr.Scheer says,“the a

126、dvantages are both in the way clients can now connect into our systems,as well as benefit from the unbundling aspect,where rather than having one service that comes through on all hardcoded messages,we now have many microservices that you can consume individually and/or bundle to deploy new proposit

127、ions.”One of the first services that Visa moved on to the VDP was Visa Direct.Visa Direct is a service run on Visas backbone network,VisaNet,that historically solely provided pull payments such as traditional consumer to business payments.About ten years ago,Visa realized that they could also suppor

128、t other types of transactions by reusing the same infrastructure,namely by enabling push payments such as consumer-to-consumer transactions or merchant refunds to consumers.However,because access to VisaNet was still through the traditional channels and the traditional processing capabilities that V

129、isas banks,financial partners and merchants were using for consumer to business payments,Mr.Scheer says,“we realized that that was very restrictive.”Firstly,the systems and processes were set up and optimized for consumer to business payments and did not have the flexibility to support this new busi

130、ness case.Secondly,the channel that a FI would use to expose a push payment is typically not a card or physical card-based channel.It was more likely a digital channel,like a mobile banking application,with the purpose of providing a digital user experience.Visa also realized that there were a lot o

131、f new players that were getting involved in the payments space,not for consumer to business,but for things like P2P payments,or ride sharing apps wanting to do disbursements,or players with a specific proposition around refunds,such as tax refunds.All these new players were often digital-first,or a

132、digital spin-off of a legacy business.These players do not want to have their own data center,nor do they want to have to maintain physical hardware,or to consume services in a monolithic way.They want an API platform to plug into and to pick and choose the services that they want to use.For these r

133、easons Visa Direct was one of the first products moved on to the VDP whose services were exposed through the APIs.It has been a big success,according to Mr.Scheer.Both PayPal and MoneyGram are using Visa Direct for real-time money transfers,attracted by Visas single connection for fast domestic and

134、cross-border digital transfers.PayPal is using the service to extend global white label Visa Direct payout services through PayPal and its Braintree,Hyperwallet and iZettle product solutions.This expansion follows the successful launch of the Instant Transfer service across North America and other m

135、arkets in Asia Pacific and Europe.MoneyGram,a specialist in remittances,was one of the first organizations in the industry to enable real-time cross-border transfers from the United States using Visa Direct.In 2021 they expanded their relationship with Visa.MoneyGram customers can now use the Compan

136、ys website or mobile app to send money in near real-time across 575 corridors from 25 countries in Europe through a single connection to Visa.Indeed,Mr.Scheer says,“we are moving more and more big names in the remittance space to using our proposition because it is simply cheaper,faster and better t

137、han the traditional correspondent networks and the bilateral relationships which underpin most of them.”The other way that Visa has responded to the evolving market is by introducing their RTX platform.As Mr.Scheer explains,“VDP allows partners to better consume services,but those services are still

138、 Visa services sitting in a Visa data center.They are merely exposed in a new,fully digital and agile way.”But Mr.Scheer says,“we realized that not all of our partners are going to be Visa clients in the traditional sense,like a bank,and as the world becomes increasingly diversified,we recognized th

139、at we need to learn how to play nice with other networks.”15Five Critical Payment Lessons for The New EconomyAs a B2B company,Visa orchestrates a hugely wide set of transactions and propositions that rely on partners.According to Mr.Scheer,“with things like NPP in Australia,and Faster Payments in th

140、e UK,and the increasing number of alternative networks such as blockchain,we recognize that transactions are going to transit through a number of networks in a single journey.”Mr.Scheer asks,“in this new distributed world,how do we continue to be able to provide value and value-added services?We rea

141、lized that one of the constraints was having those services reside on Visas own infrastructure.Because Visa is so secure,it makes it difficult for third parties to reach into our network and consume services,especially if they do not fit the traditional profile of a regulated financial institution.”

142、“That is why we created the RTX platform,”says Mr.Scheer.RTX is a way to expose services to third-party network transactions that do not route through VisaNet.Mr.Scheer explains that not only does it provide Visa with the delivery flexibility to third parties,it also helps them to comply with requir

143、ements like data residency,where they have to process a transaction,that for legal reasons,cannot leave a jurisdiction.RTX allows Visa to ringfence,and also to deploy services in a new way-for example by hosting in the cloud-to new partners.New Payments Platform Australia(NPPA)PayTo,the NPPAs propos

144、ition,is another example of a service that was purposefully built to be flexible,agile and adaptable.As an example,Ms.Stuart explains that when they started working on PayTo,Australias Consumer Data Right(CDR)had not yet materialized.Data sharing or read access had been introduced in the marketplace

145、 and it had been indicated that write access or payment initiation would probably come at a later stage.Ms.Stuart says,“so,knowing that this was likely to be a future development in the marketplace,we intentionally looked at the capability design to ensure that this would be a broad scalable solutio

146、n that could be used for write access in the future.Then,if the market did go in that direction,our solution could be a way for banks to meet their obligations under CDR.”Ms.Stuart says,“we purposefully tried to design the proposition in a way that was as broad and as flexible as possible.We were tr

147、ying to make sure that rather than developing it for any particular use-case and then two years later having to come back and make changes because we wanted to expand it,that from the start we made it as broad and as extendable as possible,to have that capability underpin a whole different range of

148、use-cases,some of which we havent even thought of yet.”16Five Critical Payment Lessons for The New EconomyLesson Four:Security is still everything9 Juan Carlos Crisanto and Jermy Prenio,BIS Financial Stability Institute,“FSI Briefs No7:Financial crime in times of Covid-19 AML and cyber resilience me

149、asures,”May 2020,https:/www.bis.org/fsi/fsibriefs7.pdf10 Sift,“Q1 2021 Trust&Safety Index:Exposing the Multi-billion Dollar Fraud Economy,”https:/ PwC,“Payments 2025&beyond:Navigating the payments matrix-Charting a course amid evolution and revolution,”https:/ fundamental bedrock of any successful p

150、ayment system is trust.Trust goes to the heart of why people still bank with incumbents they are seen as safe and secure.However,putting customer experience at the heart and center potentially suggests a dilemma for payment providers.The more secure you are,the more friction you introduce to the cus

151、tomer journey,the more friction-free your customer journey,the less secure you are seen to be.There is a degree of truth to this predicament,and it is a precarious balancing act for payment providers.Indeed,a recent Bank for International Settlements report talks of the expected trade-offs between c

152、ybersecurity measures and customer convenience.9 Finding this balance will undoubtedly get harder with the proliferation of IoT devices and embedded payments.If the Covid pandemic accelerated the move to digital payments and ecommerce,it also accelerated an increase in cybercrime as criminals follow

153、ed the money online.The average value of attempted fraudulent purchases increased 69%year-over-year in 2020,and it has been estimated that more than US$1 trillion was lost globally to cybercrime last year.10 No wonder that a recent PwC survey found that security,compliance,and data-privacy risks and

154、 related issues were the top concern for banks,fintechs and asset managers in implementing a fully integrated technology strategy.11 Data and tools can help.Start with eKYC processes which have become popular with new digital-first players.Artificial Intelligence(AI)and Machine Learning(ML)can check

155、 the authenticity of an identification document,while biometrics and liveness detection can quickly authenticate a person and authorize subsequent access.While digital solutions open up new channels to send and receive money,they also increase the risk of money laundering,terrorist financing,and san

156、ctions evasion.Having robust data collection and transaction monitoring tools can help minimize the risk.Other tools include identity and access management;data encryption;machine learning enabled data security;and threat detection services to analyze incidents and provide analysis.Together these on

157、line tools build a much more supervised and robust financial landscape that cuts out the obscurity of cash,checks and traditional cash remittance.Another consequence of digital transformation is the amount of data that is produced.That exposes institutions to risks regarding data privacy.Regulators

158、have taken note and are tightening their oversight.The same PwC survey found that data privacy and cybersecurity were,as one category,the top concern 17Five Critical Payment Lessons for The New Economy(48%)in terms of the impact of regulatory changes over the next five years.12 Payment providers wil

159、l need the flexibility and adaptability to respond quickly to changing legislation around data privacy and cybersecurity while also bearing in mind that APAC has some of the strictest data sovereignty/data residency laws in the world.Visa s RTX platform and the capability to ringfence transactions a

160、nd ensure data remains in individual jurisdictions when required,is a case in point of the agility payment players are going to need if they want to be successful in the region,and indeed anywhere.With the rising importance of ecosystems,the collaboration between incumbents and fintechs,and the move

161、 towards open banking,attack vectors will likely increase.The system is as strong as the weakest link and as such,it is incumbent on everyone in the ecosystem to work together to ensure it remains safe and secure.Case studiesTNG DigitalMr.Ni at TNG Digital provides a useful case study highlighting t

162、he role that technology can play in providing the necessary level of security and safety.He says,“security is probably the first and biggest concern when it comes to money.People need to feel comfortable transferring funds to your wallet and using it to spend their money.”It helps that TNGDs two big

163、gest shareholders are CIMB,one of the biggest banks in Malaysia,and Ant Financial.According to Mr.Ni,Ant Financial particularly has a lot of advanced risk technology that TNGD is leveraging.In fact,TNGD is so confident about its risk and fraud engine,that Mr.Ni says,“we are proud to say that we are

164、the first country outside of China to launch a Money Back Guarantee MBG service for our users.”Effectively,if a users account is hacked and they lose their money TNGD will refund them in full.TNGD has also launched a product with AIA,another of its shareholders,called Wallet Safe.For one ringgit a m

165、onth(equivalent to US$0.24)customers can 12 ibidinsure their wallet and everything linked to it such as a debit and credit card,bank account and investment account.Any unauthorized transaction going through the wallet will be reimbursed.Mr.Ni explains how it works,“lets say someone hacks into the wa

166、llet and is able to pull money from your credit card,basically a cash out.We will cover you.Most people do not put too much money in their wallet,losses mostly occur because the wallet is linked to a bank account,or a credit or debit card.”Mr.Ni says,“we launched this Wallet Safe insurance to cover

167、that as well.”The reason TNGD charges one ringgit is not to make any money out of it but to visibly remind people that their wallet is safe.To build that trust.People will remember that they bought that one ringgit insurance.Mr.Ni says,“if people do not trust you or feel safe enough it is basically

168、game over.”That is why security is one of the top things that TNGD focuses on.The general idea is to monitor peoples behavior to understand what is within the normal range and what is not.Mr.Ni says,“TNGDs risk engine monitors users behavior to detect any abnormality and will activate different leve

169、ls of Risk Challenges depending on the seriousness of the abnormality.”In these cases,Mr.Ni explains,they are not going to just deny you service upfront.They are going to throw out challenges.He says:“for the low-level risks we are probably going to request your passcode.But if the risk level is mid

170、dle or high,we are going to come in with a biometrics challenge.”Because the majority of TNGDs customers are eKYC customers the company has a record of their customers facial biometrics.Mr.Ni says,“we will ask you to facial ID yourself and reject the transaction if you refuse.”It is because of this

171、risk engine and all the risk tools TNGD use behind the scenes that TNGD feel so comfortable providing that guarantee that they will reimburse their customers if they lose money to fraud.18Five Critical Payment Lessons for The New EconomyLesson Five:Data is the new money13 ibid14 Harry Menear,“How Io

172、T is digitally transforming payments,”Jun 2020,https:/ payments in a race to zero in terms of margins on pure transaction processing,the real value for payment providers comes from the data generated from those transactions.Indeed,payments generate roughly 90 percent of banks useful customer data in

173、formation about who is buying what,how much and when.This is creating new revenue streams for payments businesses that can monetize that data.13 With the focus now wholly centered on creating a relevant customer experience,payment providers that leverage data to provide hyper-personalized value-adde

174、d services will be the winners in this race.So much the better if these are contextualized,real-time services based on the latest available in-moment behaviors of their customers.The rate at which such data is being created is exponentially increasing.It is estimated that 90%of all the data in the w

175、orld was created in the last two years.Today,3.5 billion people own and use a smartphone which collects massive amounts of data from a single endpoint.14 The proliferation of IoT devices,sensory endpoints that collect information,is only going to expand the amount of data available.So too will open

176、banking,as third-party providers are consented access to consumer banking,transaction,and other financial data.Those organizations with the ability to use this data to best effect will secure competitive advantage.The major challenge for payment providers,however,will be how to handle such large vol

177、umes of data and draw useful insights from it.Data analytics tools and AI will become the most important technologies in the payments sector.A big struggle,especially for incumbents,will be how to break down data silos.It is no good having analytical tools and AI if the data that feeds them is dirty

178、 or unavailable.Another issue for payment providers,especially in APAC which is such a fragmented region when it comes to the regulatory landscape,are the inconsistent rules around data protection and privacy.A vital step towards unlocking datas value will be to establish greater regional consistenc

179、y on data protection and privacy laws around what standards should apply,who should control data,and how the rules are enforced.In the absence of legislators taking the lead,the industry could take important steps on agreeing standards for collaboration.Case studiesTNG DigitalAlan Ni at TNG Digital

180、once again provides a rich case study on the value of data for payment providers.He starts by comparing the business models of fintech payment companies,such as TNGDs,with the likes of YouTubes,Facebooks,and Googles.In his mind they are very similar.He says,“we are all using and monetizing data,it i

181、s just that the data they(YouTube,Facebook and Google)capture is very different.”Payment companies,he says,are capturing data on what kind of payments you are making,what you are buying,how frequently you make a purchase etc.Mr.Ni says the type of data you capture will determine how you monetize it.

182、For payment companies,he says,people are not going to spend hours on your payment app,so if you want to monetize the data,it is going to be very difficult to rely on advertising revenues because you do not hold peoples attention for long enough.However,Mr.Ni says:“there is something we have that nob

183、ody else has:I know what transactions you are making;I know the things that you are buying;I know how wealthy you are;and I know where you live and where you spend.Even Facebook and Google do not have that kind of data.”Mr.Ni says,“so for us,providing additional digital financial services is actuall

184、y a very logical next step.Insurance,wealth management,banking services,lending,etc.”19Five Critical Payment Lessons for The New EconomyAccording to Mr.Ni it is common for payment businesses to lose money on their core transaction processing business.They see payments more as an engagement tool for

185、acquiring data,which can then be monetized by providing digital financial value-added services.Mr.Ni says,“so if you see the business model of payment providers,it is actually very similar to social media content providers:capture data,understand the customer,offer them different services.”Mr.Ni say

186、s,“so in the end,if you look at any digital business,if they cannot capture the necessary or relevant data,if they do not have the data science behind it to really analyze the data,to make sense of it and monetize it,their entire business model is not going to work.”Mr.Ni highlights the journey TNGD

187、 has been on to monetize their data.TNGD,he says,is currently in a transition period,going from payments alone into financial services.One of the first products the company launched is a product called GO+which is similar to YuE Bao,a money market fund by Alipay.Mr.Ni explains,“the difference betwee

188、n a product like YuE Bao or GO+and a standard money market fund is that these do not feel like investment products.”He explains:“the way it works is that you have full fungibility between the wealth management fund and your wallet balance.As soon as you put your money into the money market fund,you

189、immediately benefit from a much higher return compared to your bank saving or current account,where the interest is close to zero.”Mr.Ni elaborates,“if Alipay or TNGD eWallet can provide this sort of facility where you can enjoy a return of 2%to 3%while also receiving all the benefits of a bank acco

190、unt,where you can make instant payments,transfer money in real time,withdraw money from an ATM machine with a Visa card,have exactly the same user experience as with a normal expense account but with the only difference being that it also gives you a much higher return wouldnt you want that?”Accordi

191、ng to Mr.Ni,many Malaysians have proven to want just that.Within two months of launching GO+,TNGD had one million users,equivalent to 5%of the total penetrable market.What role did the underlying data play?Everything,according to Mr.Ni.TNGD has a propensity model to understand the customers past beh

192、avior in terms of their average eWallet balance,what they tend to buy,their monthly spend etc.He says,the amount of money customers historically put in their eWallet is a very important indicator for TNGD in determining which customer is more likely to take up this type of product.He says that their

193、 marketing is therefore very targeted,and it makes an enormous difference.The people with the highest propensity scores are far more likely to take up this product,he says.Adding,“these customers are also going to put in thousands or tens of thousands of ringgit rather than a few hundred because you

194、 can see that these people have disposable income to spend.”According to Mr.Ni,“for financial services,the most important thing is segmentation.You cannot treat people the same.”He adds,“the people who make 100,000 ringgit a month versus 10,000 or 3,000 ringgit require very different products.So,for

195、 us to sell the right product to the right people,the starting point is data and segmentation.”Mr.Ni ties this all together with another example.The Malaysian government has an insurance program known as“Tenang insurance,”for the“B40”segment of the population that is the segment of the population in

196、 the bottom 40%of the income bracket.The insurance premium is subsidized for the customer and can be claimed from the government.TNGD have therefore launched it as a product.As Mr.Ni explains,“with products like Go+you are looking at relatively wealthy people,because they have more money to put in t

197、heir expense account and are more likely to be receptive to these types of products.If you only have 100 or 50 dollars you probably do not care about 2%versus 0%interest.It does not make any difference.So,you can see GO+20Five Critical Payment Lessons for The New Economyand Tenang insurance are targ

198、eting very different customer segments at the different ends of the spectrum of our customer base.”For the Tenang insurance product,TNGD are also looking at the data to ascertain who they can potentially pitch this product to.Mr.Ni says,“the problem for insurance companies is that they do not have t

199、he data that we do so they struggle to sell this type of insurance to the right people.”Mr.Ni says,“after the first month of launching this product we saw that we had the lions share of the total market.”He finds it interesting that a single payment company such as TNGD can get more volume than all

200、the big-name insurance companies.He says,“they have a much bigger marketing budget than we do.But the problem is they do not have the customer data that we have.”Instead,according to Mr.Ni,they just cast a wide net by purchasing Google ad space,hoping that whoever types in a search will go to their

201、website and purchase.Mr.Ni says,“this approach does not work.If you Google Tenang insurance you see that many companies are trying to push this product on their website,but we are the ones with the lions share of the market even though we do not do any advertisement on Google.”TimoMr.Nguyen of Timo

202、also speaks to the importance of using data to offer more personalized financial services and why incumbents might struggle.He says,“the longer a customer has been banking with us,the more data we can collect on them building a fuller picture and understanding of who they are and where they are on t

203、heir personal financial journey.”Mr.Nguyen says traditional banks all know about the opportunities of big data,analytics,machine learning,etc.Their problem,he says,“is actually not about access or sources of data.They have so much data,but they cannot even get it into formats on which they could do

204、even some basic analyses.”Mr.Nguyen says,“we are designing a system up front where we said right from the start that we have got to make sure that we are capturing data in a thoughtful and smart way so that we can provide internal basic credit scoring,we can do more predictive things in terms of bei

205、ng able to say,hey,this person seems to be on their second or third job and their pay scale is going up,it is time to offer them a vehicle loan,or a home loan,etc.”Mr.Nguyen thinks that the reciprocal happens in America.There,he says,people have to have one life event or something that nudges them t

206、o go to the bank.Mr.Nguyen elaborates with an example,he says:“the other day my nephew was a little annoyed because he got rejected on a loan and he did not understand why.Now he has a negative impression of his home bank.Whereas the opposite should be happening.It should be,hey we see that you have

207、 done all these great things,your wonderful credit history means if you need a loan,we are ready to give you one.An invitation to the customer instead of the customer having to plea.This goes back to customer-centricity.”21Five Critical Payment Lessons for The New EconomyConclusionThe financial indu

208、stry is undergoing rapid digital transformation underpinned by fierce competition from new players entering the market,changing customer expectations,evolving regulatory oversight,the enablement of technology and the Covid pandemic.The payments sector,a big part of this industry is undergoing its ow

209、n constant change.As digital payments increasingly become the de facto method of transaction,to be successful in this new digital era,incumbents,digital banks,fintechs,and PSPs will have to distill the lessons that we have outlined in the report:namely,focus on the customer,be where the customer is,

210、be agile,be secure,and effectively monetize consumer data to provide hyper-personalized financial value-added services.However,it would be wrong to see these lessons as standalone and mutually exclusive.One of the key findings from speaking to successful players within the ecosystem was not only how

211、 relevant each of these lessons are but how interconnected they all are as well.If the overarching narrative is on getting the customer experience right,one can start to see how the other lessons are connected.Players need to respond quickly to iterate on improving the customer experience and to be

212、able to meet the customer where they want to transact,being where the customer experience needs to go.That requires agility and working with partners in the ecosystem.To do that companies need to have the right infrastructure in place which includes having robust APIs.That will also help to acquire

213、more granular data points on customers that will enable companies to better segment and know their customers.That then allows institutions,fintechs etc.to offer customers more relevant,tailored,hyper-personalized services.Last but not least:trust.Trust is everything,so if you are not safe and secure

214、,customers will not want to even begin that customer journey with you.Here again,robust APIs and the right analytical tools can help keep you and your customers safe.To be successful in this new era not only requires payment providers to distill the lessons that we have outlined in the report,but it

215、 also requires them to think carefully about the synergies between the lessons and how they all come together to deliver the end-to-end customer journey.That should be the key focus for any payment provider today as we head into a digital future.22Five Critical Payment Lessons for The New EKapronasi

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