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January 9, 2020 • Issue 20:01:02

The continuing evolution of payments

It's a convenience play that cuts across digital payment plat-
forms, said Simon Fairbairn, director of solution develop-
ment for Western Europe. "Alongside enhanced security,
monetary savings and ease of use, digital payment rewards
will increasingly become embedded in payments as a val-
ue-added service," he said. "With innovative payment ter-
minals on the rise, such as Android, that offer enhanced
applications to collect more consumer data, customers will
expect more personalized offers."

A new report, prepared by Harvard Business Review Ana-
lytic Services for Mastercard, shows strong interest in re-
vamped customer loyalty strategies. Drawing on a survey
of 400 executives spanning more than a dozen industries
across the globe, the report reveals that fewer than half (42
percent) believe their companies' customer loyalty strate-
gies are effective, and they're looking for more.

By Patti Murphy As recently as five years ago, executives ranked traditional
rewards, such as points and miles, as the top determinant
he payments landscape has changed dramati- of success for loyalty programs, the report noted. As of last
cally over the past decade. Ten years ago, for year, those traditional rewards had fallen to fourth place,
example, mobile payments weren't much more behind exceptional customer service (cited by 51 percent of
T than a pipe dream. Today, it's a different story executives surveyed), digital and omnichannel access (48
altogether, as mobile apps like Venmo and Zelle spur all percent) and ease of use (45 percent).
players to action.
Perhaps even more telling, surveyed executives believe
"Mobile is really maturing," said Jack Baldwin, CEO of that five years from now, digital and omnichannel access
BHMI, which specializes in back-office software solutions will be the most important customer loyalty success factor
to support electronic payments. "If you're not there already
you need to be playing catch up."

Shahid Mansuri, co-founder of Peerbits, a mobile app Contributed articles inside by:
company with operations in the United States and India,
believes the best is yet to come. "[I]nnovations in the mo- Bradley O. Cebeci .................................................................................20
bile payments niche have just begun," Mansuri wrote in Dee and Emily Karawadra .................................................................32
a recent blog post. "In the coming years, more and more
advanced mobile wallet technologies will emerge and it Eddie Johnson .......................................................................................36
might even eradicate the use of paper money altogether." Adam Atlas ..............................................................................................38
Mansuri said he expects greater adoption of mobile loyalty
programs tied to branded payment apps in 2020. TOC on page 3

Continued on page 30