An annual survey conducted by global payments software provider Compass Plus has revealed that the growth of new payment channels is viewed as the biggest challenge facing the payment industry today. The survey, which was carried out at the recent international payment, security and identification event, Cartes 2012 in France, took in the views of more than 70 respondents including financial institutions (FIs), mobile operators, payment processors, and other industry professionals.
The survey saw 30% of respondents cite the variety of payment channels available, as the primary challenge facing the payments industry today – an increase of 8% when compared with the survey results for 2011. The other key issues highlighted included the growth of near field communication (NFC) and contactless technology (21%), the need for simple user authentication (18%), and the rise of non-traditional payment providers (17%). In contrast there was broad agreement from those surveyed on the speed of mobile banking adoption. The majority (59%) believe that mobile will account for 10-30% share of banking usage versus other channels within two to three years.
Fraud, security and compliance were forecast as the top three issues for the industry in 2013. Internet banking hacking remains the biggest fraud threat at 27% versus 29% last year. Customer-not-present (CNP) fraud is the second at 26%. Card skimming is perceived as the fastest growing threat with an increase of 7% year-on-year. Customer confusion ranked as the fourth biggest issue for 2013.
NFC represents the biggest opportunity for payment providers in 2013 according to nearly two thirds of those surveyed (62%). Last year recipients were polarised on the speed of NFC uptake. This year saw a growing consensus among respondents with the majority (67%) expecting NFC to reach mass adoption in one to three years.
“The industry still remains in a period of turbulence with technology led disruption at its core,” said Maria Nottingham, chief marketing officer (CMO), Compass Plus. “Marrying innovation and speed with security and compliance is paramount for financial institutions to create an environment where they can launch new payment services quickly and cost effectively while ensuring they meet industry standards.”
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