How Will the Payments Landscape Evolve in 2019?

How Will the Payments Landscape Evolve in 2019?

January 7th, 2019 - Payments, ATMs and Unattended

Over the last few years, the variety of payment methods available has expanded dramatically, fueled by significant consumer adoption on a global level. Tiffany Trent-Abram, Vice President of Global Product Management at TNS, considers the key developments which could shape the payments industry in 2019.

Payment Methods Expand and Evolve

Consumer adoption of digital wallets is expected to continue to grow globally at a tremendous rate. It is estimated there will be over 500 million mobile contactless users around the world in 2019, with the Far East and China having the highest number and then North America who has less than half as many users and Western Europe trailing closely behind. Mobile payment growth rates in China are likely to remain high as AliPay and WeChat demonstrate a strong appeal to shoppers.

Security fears are likely to present the biggest barrier to increasing use of contactless card payments, but biometric smart payments could reduce these concerns.

Cryptocurrencies will continue to secure a place in consumers’ digital wallets, but this growth could be held back by countries, such as China and Russia, who prohibit their use due to potential links to illegal activities. Sweden could become the world’s first cashless society.

Europe Embeds Under New Regulations

PSD2 is aiming to create an open banking system which could increase competition between banks and make cross border payments more secure. Strong customer authentication (SCA) which is a 2-factor authentication process, is expected to become compulsory under PSD2 regulations.

Consumers Drive New Technologies

Retailer mobile payment apps are anticipated to continue growing in popularity and may provide alternatives to Apple Pay, Google Pay and Samsung Pay. Apple Pay could become available in more than 25 countries in 2019.

Connected car payments could rise exponentially as automobile manufacturers launch millions of new vehicles with in-built technology as standard.

It is anticipated that over 80 million smart watches will be sold in 2019 and wearables could become a popular option if items, such as Visa’s new ‘pay-by-jewelry’ ring which is currently in development becomes available.

Consumer familiarity with voice recognition technology will continue to rise as most households now own a virtual assistant like Alexa and 2019 could see an emergence of payments via this method if consumers trust can be established.

More retailers are expected to adopt ‘Scan and Go’ payment apps which would allow shoppers to buy items in their virtual cart, pay via the app and save time by avoiding queues. It is anticipated that around $300 million will be processed this way globally in 2019.

Unattended payment terminals are expected to gain further popularity as parking meters, kiosks and vending machines are now being joined by other industries such as retail, food and pharmaceutical outlets. Cardless ATMs could appear on the high street as they are currently being trialed around the world.

If motion code debit card trials are successful, this could see the beginnings of a move away from CVV codes for ‘card-not-present’ transactions.

With all this possible, 2019 looks set to be an exciting year!

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