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12 payment predictions for 2020

3. More data, more powerful AI

Often thought of as just for use with fraud prevention, ar-
tificial intelligence has enormous potential to improve the
payment ecosystem for banks, processors, merchants and,
ultimately, consumers. Together with companies using AI
to analyze certain patterns and algorithms in data to de-
tect fraudulent activity, retail payments will also use this
technology to enhance digital interactions in voice com-
merce and mobile banking.
4. New smart city payment options

For the last few years, we have seen the beginnings of fric-
tionless towns and cities across the globe. The TfL tube
system and contactless buses are a prime example of an ef-
fective cashless system – since its inception over 1.7 billion
frictionless journeys have been enabled. In 2020, cities will
implement new smart payment options by joining forces
By Simon Fairbairn with the right partners and platforms to counteract new
Ingenico Banks & Acquiring challenges, including ease and speed of implementation,
disruption and data security.
s we bid farewell to 2019, my colleagues and
I came up with 12 key payment predictions 5. Smarter purchase suggestions
for the year ahead, which are presented in this In 2019, Amazon generated 35 percent of its revenue from
A article. They reflect areas that contain both its recommendation model, which utilizes customer data
opportunities and challenges created by ongoing evolu- to deliver smarter purchase suggestions. By using data to
tion in our sphere. personalize suggestions, retailers are truly listening to
1. Innovative fraudsters customers and continuously pushing the boundaries of
shopping experiences. In 2020, we're going to see more re-
In 2019, authorized push payment fraud (APP fraud) rose tailers following in Amazon's footsteps, either in store or
by 40 percent, costing the UK £616 million. Thanks to online.
PSD2 and Open Banking, we will continue to see more
new players in fintech. This is brilliant, but it means 6. Gen X demand for payment security
fraudsters will inevitably innovate their techniques, A lot of the fintech revolution has been driven by millen-
too. As a result, in 2020 we will see banks enhance their nials, for millennials. As this demographic seeks and de-
security and implement measures to protect customers, mands new ways to pay, Open Banking continues to en-
such as payment delays, strong customer authentication, able new players in the payment ecosystem for millennials
two-factor authentication and confirmation of payee. as well as Gen Z, a third of whom are estimated to have
2. Digital payment rewards opened at least two new accounts with a challenger bank
within the past five years.
Alongside enhanced security, monetary savings and
ease of use, digital payment rewards will increasingly While the focus has predominantly been on these young
become embedded in payments as a value-added service. demographics, their older counterparts, such as Gen X, are
These types of loyalty initiatives provide opportunities to being left behind. As such, in 2020 we will likely see Gen
engage directly with customers and are useful to increase X demanding that the basics of their financial services,
customer allegiance with brands. such as security, are prioritized over anything else, which
might cause a generational divide.
With innovative payment terminals on the rise, such as
Android, that offer enhanced applications and collect more 7. The rise of social commerce
consumer data, customers will expect more personalized Social commerce is indisputably going to be the break-
offers. Organizations will deliver them in 2020. out trend for ecommerce in 2020. The line between social
media and ecommerce is increasingly becoming blurred,
driven by the sheer amount of time spent on social media
apps.
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