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Global Payments

25 November 2015
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Digital payments say goodbye to growing pains

EARLY 2000s

The birth of the eWallet

Companies like PayPal and AliPay introduce eWallets to the mainstream in the early 2000s, and consumers are quickly drawn to a new secure way of paying online. It is during this phase that the ecommerce boom hits full swing.

The rise of the smartphone leads to new payment apps challenging traditional eWallets:

  • Merchant-owned apps e.g. Starbucks and The New York Times
  • Bank-owned offerings e.g. Barclays bPay and Capital One Wallet
  • Mobile-friendly NFC technologies e.g. Apple Pay, Google Wallet, Samsung Pay

This drives a worldwide shift from plastic card payments to Alternative Payment Methods, but with many options appearing so quickly a sense of app fatigue and confusion starts to set in, leaving both consumers and merchants unsure of which approach is best.

2010-2015

The eWallet market explodes, but hits growing pains

Here's where we are today

2015-2019

The eWallet grows up

The next few years will see consumers dictate which players come out on top.

Winners will emerge in each of the major digital payment areas.

It will become increasingly difficult for new players to break into this market as most consumers will favour universal platforms from tech vendors or their bank. Only those that can differentiate themselves with an ultra-convenient and unique experience will succeed.

Once the market consolidates, payments services will start linking together to create a harmonious interconnected ecosystem.

With account details, payment preferences, and loyalty points shared between vendors, merchants and banks, consumers can make virtually any transaction – be it an online purchases or a money transfer to a friend – using a single device and payment mechanism.

Convenience is no longer about having as many choices as possible, but rather about not even needing to make a choice every time we pay.

2020 and beyond

A truly harmonious experience

Who’s leading the payments app race?

eWallets

    10 0
    CX Uptake Trust Innovation Cool Factor
  • 8
  • 8
  • 6
  • 6
  • 6

Tech Players

    10 0
    CX Uptake Trust Innovation Cool Factor
  • 6
  • 5
  • 8
  • 9
  • 10

Bank-owned Apps

    10 0
    CX Uptake Trust Innovation Cool Factor
  • 7
  • 4
  • 10
  • 7
  • 5

Merchant-owned Apps

    10 0
    CX Uptake Trust Innovation Cool Factor
  • 6
  • 6
  • 6
  • 5
  • 8

The cool-factor for mobile-friendly payment innovations from Apple, Samsung, and Google will give these platforms an edge as the digital payments market consolidates. 2016 will see more consumers upgrade to NFC-enabled mobiles and begin driving wider adoption.

The trust consumers place in financial institutions will see bank-owned apps win over more users, particularly for high-value purchases.

eWallets will continue their steady rise, but consolidation in the market will see only a few winners emerge in the near future.

Heading for payments 'Shangri-La'

By 2020 payment technologies will become intelligently linked, automatically routing purchases to a consumer’s preferred account and payment method.

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