Top Trends in Retail Payments: 2016 Edition

by Zilvinas Bareisis, March 9, 2016
Industry Trends
Global

Abstract

This report reflects on the key retail payments issues which kept Celent analysts busy in 2015 and that Celent believes are set to shape the industry in 2016.

The report, Top Trends in Retail Payments: 2016 Edition, is the sixth edition of Celent’s annual payments trends review. This particular report focuses on trends in retail payments. This year, it addresses five major themes that we believe are shaping retail payments right now.

  1. The “Pays,” HCE, and contextual payments drive adoption of mobile payments.
  2. Focus on security remains relentless (EMV, tokenisation, 3DS 2.0, identity, and authentication).
  3. Bank APIs will have far-reaching implications for payments.
  4. Fintech still attracted to payments, but are increasingly looking to partner with banks.
  5. Transaction data: the Holy Grail powering innovation in commerce.

“In 2015, digital payments remained high on the industry’s agenda, and we expect they will continue to dominate it in 2016,” says Zilvinas Bareisis, senior analyst with Celent’s Banking Group and author of the report. “We are starting to see how digital experience for consumers can be orchestrated across multiple companies, such as Facebook Messenger and Uber. Banks must think how they can weave banking and payments services into the customers’ digital fabric without compromising on security.”

There is no doubt that the payments industry is more dynamic and exciting than ever. The aim of this report is to help Celent clients navigate the changes by highlighting critical developments in today’s retail payments landscape.

This 26-page report contains 12 figures and two tables.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

The Pays, HCE, and Contextual Payments Drive Adoption of Mobile Payments

3

Focus on Security Remains Relentless: EMV, Tokenisation, 3DS 2.0, and Biometrics

8

Bank APIs Will Have Far-Reaching Implications for Payments

14

Though Still Attracted to Payments, Fintech Increasingly Looking to Partner with Banks

16

Transaction Data: The Holy Grail Powering Innovation in Commerce

19

Leveraging Celent’s Expertise

21

 

Support for Financial Institutions

21

 

Support for Vendors

21

Related Celent Research

22

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