Presentation given to Capitant members at University of Ghent outlining my current thoughts on the Future of Payments

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in2payments.com
Visit today!

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Like most things in life, payments are about giving and
receiving…
Goods OR Services Rendered
OR Societal Debt
Payment

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However, before we get carried away…
Belgians have the highest per
capita current and savings account
balances in Europe
• EUR 67.100 average in accounts (double
that of Germany)
• EUR 42bn sitting dormant in current
accounts
• EUR 770bn in savings accounts
Today 80% of payment volume is
still cash
• New legislation prevents cash payments of
more than EUR 3.000 but impact is minimal
• Belgian debit transactions are the cheapest
in Europe
• Yet in Sweden cash payment volume is
down to now 52% as cash is getting more
expensive
En zo, heeft elke Belg een baksteen of een
goud stukje in zijn maag?

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Why are we still in love with cash?

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We need to bridge the gap between people and payments
Understand

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Why did the card format work?
ISO Standard Size and Shape Simple and ReliableEasy to Carry, Issue and use
But the world has changed since Frank’s day

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Mobile is soooooo last season
Payment Geek

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The payments innovation box
•Payer data storage and capture
•Payer data authentication methods
•Multi-party data transmission
•Clearing and Settlement
•Standardisation and Specifications
TECHNOLOGY
•Cost of getting paid
•Fraud
•Preference for stability
•Growth/retention enabler
•Convenience, Security, Low-cost triangle
•Internal Market
•Intellectual
Property
•Competition
Legislation
•XS2A
•Integrity of
Instrument
/Channel
POLICYMAKERS&
LEGISLATORS
PAYERS & PAYEES
•Profit
•Preference for
stability
•Brand Values
Consciousness
SERVICEPROVIDERS&
PARTICIPANTS

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Finally, the future
SMART WATCH
FITNESS MONITOR
NFC RING
PayPal is already experimenting with technology
that authenticates people through their heartbeats
– Jonathan LeBlanc, Head of Global Developer Advocacy,
PayPal

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Big changes are coming….
Upcoming Regulation will heavily skew the innovation box
Retail is transforming into a multi-channel experience
The US is finally getting with the program

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Identity is the new money
Identity and money are both changing profoundly. Because of technological change the two
trends are converging so that all that we need for transacting will be our identities captured in
the unique record of our online social contacts. Social networks and mobile phones are the key
technologies. They will enable the building of an identity infrastructure that can enhance
both privacy and security - there is no trade-off. The long-term consequences of these changes
are impossible to predict, partly because how they take shape will depend on how companies
take advantage of business opportunities to deliver transaction services. But one
prediction made here is that cash will soon be redundant - and a good thing too…
Dave Birch, Consult Hyperion
@dgwbirch

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Banks will become stores of value

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Channel will become irrelevant

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