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Feature

By Mike Abbott, Robert Flynn, Marc Abbey and John Grund
First Annapolis Consulting
Editor's Note: This article was first released on www.accenture.com/10PaymentsTrends and published in First Annapolis Consulting's
October/November 2017 Navigator. Reprinted with permission. Copyright © First Annapolis, an Accenture company.
hange in payments is in overdrive, and will only get faster. Traditional payments players are being squeezed
from all sides. This point of view explores 10 trends that Accenture believes will drive the future of payments.
It includes consumer views based on the results of Accenture’s 2017 North America Consumer Payments Pulse
C Survey.
• TREND 1 – GEN Z RISING – Though they are just teens and young adults today, Gen Z will make up to 40
percent of all U.S. consumers by 2020. This emerging demographic doesn’t remember a time before Google,
Apple, Facebook, and Amazon, and will influence other consumers.

• TREND 2 – UX* IS THE NEW GOLD – As the payments universe expands, customer experience is becoming
the prime competitive differentiator. When companies have the customers' attention, they better get it right.

• TREND 3 – MOBILE HITS ITS GROOVE – Mobile payments is poised to finally have its day thanks to APIs and
open banking. Delivering a unified mobile payments experience is ground zero in the battle for the consumer.

• TREND 4 – REWARDS REVOLUTION – Consumers want more rewards and are willing to switch cards to get
them. Payments players have the opportunity to deliver rewards that meet consumer lifestyle needs, delivered
seamlessly in real time.
• TREND 5 – THE NETWORK EFFECT – The power of the network is built upon collaboration. Working within
ecosystems allows companies to multiply capabilities and reach without investing from scratch.
• TREND 6 – FINTECH AND BANK FUSION – Banks and fintechs will power the future of payments
transformation. Banks have brand recognition, industry knowledge and a customer base to scale. Fintechs have
disruptive technologies and agility.

• TREND 7 – AN ARMS RACE IN CODE – Every credit card account becomes software code. It will reinvent
customer experiences, and influence regulations and security measures.

• TREND 8 – PAYMENTS EVERYWHERE – Everyone can be a merchant and every device can be an acceptance
device. The payment network becomes bilateral for the first time.

• TREND 9 – FRAUDSTERS INNOVATE TOO – Bankers view data security as among the top challenges in
payments today. As the industry projects $31.3 billion in global card losses in 2018, financial institutions must
push to out-innovate the fraudsters.
• TREND 10 – RIP AND REPLACE REQUIRED – Overhauling existing payments infrastructures is a must for
payments players today. Replacing inflexible systems with open and agile frameworks is key to compete.
The future holds great opportunities for banks, credit card companies and new entrants–if they are up for the challenge.
Winners will begin now to evolve business strategies, operating models, systems and cultures.

*Note: UX pertains to design that emphasizes usability, ease of use and pleasure in the interaction between customers and
products.

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