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an array of financial products and mobile wallet schemes.
The company anticipates a steady stream of new challengers
to Apple Pay and Android Pay in the coming year, largely
driven by brand-specific payment apps similar to Walmart
Pay, CVS Pay and Kohl's Pay.
Expect more growth "As consumers hopscotch between payment apps, banks
in mobile payments, will need to have sophisticated and nimble fraud defenses
banking capable of recognizing which transactions, firing in from
all directions, are legitimate and which ones may be
A vibrant stock market index and historically high fraudulent," wrote WalletHub analyst John S. Kiernan.
ecommerce spending during the 2016 holiday "Consumers will likely not settle on a default payment app,
season have led to bullish predictions for pay- even for person-to-person payments."
ments and retail in 2017. Financial analysts
expect growing adoption of mobile technologies to drive Digital banking platforms
digital transformation in payments, retail and banking sec-
tors. D3 Banking provides a range of banking services
accessible to consumers and business owners via laptop,
Derek Webster, Chief Executive Officer at CardFlight smartphone, tablet and wearable devices. In 2016, the
Inc., a software-as-a-service company that designed the company participated in digital banking initiatives
SwipeSimple mobile POS solution, expects to see significant involving more than 1 million end users. D3 reported
growth in mobile POS solution deployments in 2017. that plans are underway to move 1.2 million users from
traditional infrastructures to D3's digital banking platform
"As the capabilities of SwipeSimple and other solutions in 2017. This will involve a "multi-step approach, replacing
have grown, mobile payment acceptance is serving disparate systems one channel at a time as existing mobile
more and more merchant segments," Webster said. "The and online systems' contracts expire and/or as budgets that
underlying mobile landscape, including iOS, Android and support modernization become available," the company
the various hardware manufacturers, will continue to shift stated.
rapidly, so it's important to ensure that any partner you use
in this space is nimble and able to react quickly to future Traditional banking software is not nimble enough for
market shifts or else you'll be left with obsolete software the increasingly dynamic digital banking landscape,
and hardware. D3 analysts noted. The company said it is committed to
"deploying a digital core that insulates the consumer from
Expanded mobile wallet adoption limitations of legacy systems," while enabling banks and
credit unions to react quickly to changes and mitigate risk.
Webster additionally noted that millions of U.S. merchants
are equipped to process near field communication (NFC) "Breaking past the first generation of [siloed], disparate
payments, a relatively new development. "Long term, channels is profoundly shifting how consumers are able to
we are very bullish on mobile wallets and contactless interact with their financial institutions," said Mark Vipond,
payments as a payment method at retail and quick service CEO of D3. "This new year will be a very exciting time as
environments," he said. "This won't be an overnight change, more regional and midsized institutions take the necessary
and likely won't fully tip during 2017, but we will see more steps to deliver a consistent user experiences enriched by
and more places where NFC payments are accepted, and data and analytics about the individual customer."
cardholders will start utilizing mobile wallets more."
Apps to suit consumers
WalletHub, a consumer advocacy company owned by
Evolution Finance Inc., sees no winners emerging in the WalletHub's Kiernan expects the smartphone to solidify
mobile wallet wars in 2017. WalletHub provides free credit its place as "the center of our universe," a valuable source
scores and consumer advice on its website; it also reviews of information that will inevitably attract more fraudsters.
He also sees no end to a "steady parade of breakthrough
apps" in 2017 designed to leverage smartphone technology
and appeal to various consumer preferences, such as
geolocation, mobile banking and airline boarding functions
"In the payments world, innovation sometimes comes in
with a big swoop," he wrote. "Most of the time, it pitter-
patters in on baby steps. … I don't think we've seen the end
of life-altering apps just yet. And in 2017, I think we'll see
one that makes me say, 'Wow!'"
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