Last week’s Sunday Times featured Raconteur’s The Future of Payments report, with which MYPINPAD is pleased to be associated.
The new payments landscape is complex and exciting and reports such as these are absolutely critical in cutting through the confusion created by such a broad, diverse and competitive subject.
Media and marketing hype is a direct side effect of an industry moving at the rapid pace of the payments industry. Start-ups, established players, analysts and commentators are all working in an environment that must live up to the promise to change forever the way we shop, bank and do business online.
2015 figures from the Payments Council, for example, show that for the first time ever there are more cashless payments than cash payments in the UK; 52% vs 48%; with the Payments Council expecting this trend to continue.
This is, of course, welcome news for our industry and a massive opportunity for UK financial institutions, retailers and payment innovators alike.
Looking behind these headline figures reveals a more complex picture. With debit cards at 24%; direct debit at 10%; and credit cards 8%, and ‘Others’ at 10%, it’s clear that this 52% is made up of a variety of different payment methods, none one of which has yet come close to challenging cash singlehandedly.
Another interesting statistic from the report is that 93% of retailers worldwide believe that their customers want a broader choice of payment tools. This calls for an authentication method that can ensure the secure entry of consumer credentials for payments across all channels, yet be simple enough for wide consumer adoption.
The report also quotes a survey from 2014 that asked consumers if they were willing to use their mobile phone to make in-store payments. Only 8% gave an unequivocal yes. 25% said yes, but only for small amounts, and 50% gave a flat-out no (17% did not know).
But, is there really such a disconnect between what retailers think consumers want and what consumers actually want? A clue may be in another statistic from YouGov cited by in the report.
The YouGov survey asked consumers what the most important factor was in how they chose to pay. Was it ease of use? No. Was it speed? No. It was security, with 55.5% of those polled saying it was still the single most important factor. Only 27% of consumers rating ease of use as the most important factor, and only 6.7% caring about speed.
When we cut through the hype, is the industry focussing on what’s most important?
Possibly. Yet security is still at the absolute heart of what will make digital payments possible, and is what MYPINPAD offers to consumers. Of course, we pride ourselves on being simple and convenient too. Most of all though, we enable security seamlessly and without friction. That is why we are confident that our solution will fill a genuine need for all stakeholders, bringing the power of multi-factor authentication via PIN to the digital channel.