Customers’ increasing expectations for value-added services are stirring fast-paced disruption in today’s payments industry while regulators push collaboration and open ecosystems, and agile new entrants transform the scene even further. Business as usual now demands continuous innovation and adoption of emerging technologies such as application programming interfaces (APIs), real-time payment (RTP) infrastructure, robotic process automation (RPA), and the Internet of things (IoT). Powered by these enabling new technologies, open banking is encouraging firms to adopt Platform-as-a-Service (PaaS) delivery models to connect various stakeholders for the exchange of data and value. Heightened openness is spurring the need for robust digital identity, advanced data and privacy protection, and regulators’ emphasis on balancing supply push with market-demand pull. Based on the latest industry activity, our analysis of the top-10 payments trends for 2019 explores changing landscape dynamics and potential challenges and benefits.

1. Top 10 Technology Trends in
Payments: 2019
November, 2018

2. Payments Trends 2019 | November 2018 © 2018 Capgemini. All rights reserved. 2
Digital identity (DI) has become critical for ensuring cyber
security and consumer safety
Source: Capgemini Financial Services Analysis, 2018; Javelin Strategy, “2017 Identity Fraud: Securing the Connected Life”, February 1, 2017,
https://www.javelinstrategy.com/coverage-area/2017-identity-fraud#
National ID
Scheme
and
Centralized
Database
Reduce Infrastructure Costs
Digital
Identity
44%
Expected increase in new-account
fraud from 2014 through 2018 while
annual losses were predicted to grow
from US$5 billion to $8 billion
Key Benefits of DI
Ensure Interoperability
Omni Channel Experience
Advanced Authentication
Development
of New
Payments
Ecosystem
Cyber risks mount with
increasing digitalization

3. Payments Trends 2019 | November 2018 © 2018 Capgemini. All rights reserved. 3
Rationalization of new solutions
introduced during ramp-up
Need for Standardization and
Interoperability to Address
Interoperability
Alleviate Conflicting or
Competing Effects of KRIIs
Global regulators increase focus on standardization to foster
market demand for innovation
Source: Capgemini Financial Services Analysis, 2018; World Payments Report 2018;
Key Drivers
Few mature markets such as the UK and Singapore
illustrate why a balance between regulatory supply
and industry demand is both necessary and ideal
Countries such as Brazil and China rely heavily on
regulators and suffer from lack of industry demand,
which is not a sustainable proposition

4. Payments Trends 2019 | November 2018 © 2018 Capgemini. All rights reserved. 4
Several countries are introducing data privacy and
protection regulations aligned with the EU’s GDPR,
which will continue over the next 2-3 years
Regulatory Mandates
PSD2, CMA (UK)
Payment Schemes
Become Collaborative
with APIs
Payment
Infrastructure
Transition to Open
Rise of Unbundled
Specialized Service
Offerings
Source: Capgemini Financial Services Analysis, 2018; Capgemini World Payments Report, 2018
Data protection and privacy is critical for payments security in
an increasingly open environment
Open and
Accessible
Corporate and
Customer Data
$96
Billion
Big Data and
Analytics Spending
on Security by 2021
$26.4
Billion
Global public cloud
management and
security services
market by the end of
2022

5. Payments Trends 2019 | November 2018 © 2018 Capgemini. All rights reserved. 5
Analytics and machine learning powered by rich
transaction data enable secure, targeted offerings
Source: Capgemini Financial Services Analysis, 2017;
Benefits
Risk Management
Identification of New
Patterns
Rewarding Loyalty
Programs
Offering
Personalization
PotentialAdvantagesofAIand
MachineLearning

6. Payments Trends 2019 | November 2018 © 2018 Capgemini. All rights reserved. 6
APIs act as collaborative ‘glue’ within the new payments
ecosystem
Source: Capgemini Financial Services Analysis, 2018
 As collaboration holds the key to success in the
future payments ecosystem, APIs will link
stakeholders to define digital strategies
APIs
Corporates Merchants Retail
New Revenue Streams
New Products and
Service Propositions
Higher Innovation Monetization of Data
Enhanced Customer
Experience
Modular/Customized
Services Banks

7. Payments Trends 2019 | November 2018 © 2018 Capgemini. All rights reserved. 7
Seamless integration of multiple payments channels to create
an omnichannel experience
Source: Capgemini Financial Services Analysis, 2018; World Payments Report 2018;
As merchants move to omnichannel payments processing, they can drive significant
efficiencies, enhance sales productivity, and boost overall customer satisfaction.
50-
300%
Omnichannel shoppers
spend between 50-300%
more than single-channel
shoppers.
1.83
bn
The number of customers
using voice assistants is
estimated to reach 1.83
billion by 2021

8. Payments Trends 2019 | November 2018 © 2018 Capgemini. All rights reserved. 8
Payments incumbents consider ‘platform-as-a-service’ to
improve efficiency, spur new business
Source: Capgemini Financial Services Analysis, 2018
Platformification could give payments incumbents
greater network reach and a strong foundation for
success in the post open banking era
Create customer-centric
solutions
New business propositions
CloudNativePlatformand
Microservices

9. Payments Trends 2019 | November 2018 © 2018 Capgemini. All rights reserved. 9
Source: Capgemini Financial Services Analysis, 2018; https://www.instapay.today/insight/instant-payments-taking-the-reins
Instant cross-border payments gain traction alongside the
increased adoption of ISO 20022 standards
Pan European SCT inst, the first cross-border
instant payments scheme launched in 2017
Malaysia, Thailand, Vietnam, Singapore, and
Indonesia plan to connect their payment networks
Under ASEAN 2025, member states are engaged in
integration of their financial infrastructuresSWIFT’s
gpi
Currently more than 80
implementations across
40 markets areas
ISO 20022 implementation, one of the initiatives
to achieve interoperability has gained momentum
Key Takeaways

10. Payments Trends 2019 | November 2018 © 2018 Capgemini. All rights reserved. 10
Source: Capgemini Financial Services Analysis, 2018
Payments stakeholders provide mobile wallets to
deepen customer relationships
Enabling Customer Centricity
Enhanced Customer Experience
Used for Enabling Contextual
Commerce
Integrated & In-app Payments
Merchants and
E-Commerce
Firms
Technology
Firms
Payment Firms
Mobile
Network
Operators
Payment industry stakeholders are adopting different
strategies and approaches for implementing mobile
wallets to enhance and secure customer experience

11. Payments Trends 2019 | November 2018 © 2018 Capgemini. All rights reserved. 11
Creation of an integrated
financial ecosystem
Voice assistants are giving rise to
the possibility of a new channel
BigTechs’ customer reach and user experience could emerge
as threats to incumbents
Source: Capgemini Financial Services Analysis, 2018; World Payments Report 2018;
Key Drivers
Challenges related to regulatory pressure might put
incumbents at a disadvantage
BigTechs are trusted by customers making them a
credible threat to PSPs
Banks might develop partnerships with BigTechs where value can be shared,
including payments products that bring in more revenue to all parties.

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