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By Shane Leahy, CEO of Tola Mobile

Handing control of the mobile payment process back to consumers will help revolutionise the fintech industry and pave way for the new providers and alternative payment methods. According to consumer commerce centreIorma, by 2018 the majority of (59%) all transactions online will be accounted for by new providers in the market who are offering more convenient and seamless ways for consumers to pay.

The implementation of the new European payments legislation is imminent, affecting the payments industry like never before and bringing the future of banking back into the hands of its consumers. In light of this banks, merchants and mobile payment providers will need to learn that personalisation, security and ease of use are at the heart of consumer’s desires, and in time acknowledge that their processes need updating to suit.

Anticipating the PSD2 Effect

Ahead of the new Payment Service Directive (PSD) update in January 2018, existing payment providers should now be looking to develop stronger customer-centric strategies so not to miss out on opportunities to new payment providers.

Consumers have always been sceptical about how their data is looked after online, especially where online payments are involved. PSD2’s focus is on ensuring strong consumer protection and enhanced security at every stage of the purchase journey, and whilst many regulated payment service providers will have systems and policies to manage their security risks, the new directive will solidify the requirements, help providers to become more transparent and provide stronger customer authentication (SCA)[1].

Transparency will be enhanced and reinforced giving consumers more insights into their payment process; from first initial order to successful purchase. As such merchants, who are already reaching 47% of UK customers with mobile billing[2], will benefit from seeing an increase in potential new customers and empowered existing consumers.

By offering more choices to consumers and a better service, new providers will make huge improvements in consumer empowerment within the industry. PSD2 will aim to create a level playing field for new and existing service providers to produce an increase in personal choice and availability, that will again put consumers back in charge and provide a frictionless, secure journey when purchasing via a mobile payment platform.

Personalisation is Key

With brand loyalty seeming to be a thing of the past, it’s important that providers give consumers the ability to track and personalise every element of their payment journey. This will lead to a significant gain in more loyal consumers and repeat purchases.

Personalisation within the payment process is as important to the customer journey as the first call to action, something that emerging companies in the hospitality sector know all about. Offering a tailored cloud-based ordering solution allows hospitality businesses to effectively manage the customer journey, streamline processes and push consumer convenience by letting them take control of their ordering and payments experience. Wi-Q offers a flexible user interface that can be designed to suit all different types of markets, and with the relationship between merchants and their consumers becoming increasingly complex with the path to purchase involving a variety of stops before reaching payment, personalisation will be the key to growth in mobile payment adoption and the implementation of the process from more merchants.

Practice Makes Perfect

The traditional banking model is evolving and the opportunities within this new directive will shake up the industry as we know it. Consumers will be looking for the best propositions from banks that offer them security, merchants that allow them to personalise their payment journey at every step, and new players who offer them no transaction charges and freedom of payment platform choice.

With consumer control at the forefront of all strategies as we head into a new era of mobile payments, ensuring the payment process is a seamless and personalised as possible is crucial. Merchants, banks and fintech companies will need to diversify their product proposition for a better consumer offering and bring online, media and mobile payments together to be more compelling in the payments industry.



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