As we move into 2020, questions remain around the state of payments both in the U.S. and abroad. Innovation and disruptive changes have ushered in a transition period from traditional to digital, but both businesses and consumers are waiting to see how some of these changes will shake out. Consolidation was the name of the game in 2019 — and may continue to steal headlines in 2020. I spoke to the experts to uncover thoughts and predictions for the payments landscape in the coming year.
This is thethird in a series of Payments & Fintech Q&A articles featuring thought leaders in the space. You can also view Part I and Part II. Holly Hughes is the CMO at BAI with previous marketing leadership roles at Fifth Third Bank and MidAmerica Bank.
Ashley Poynter: 2019 ushered in quite a bit of consolidation in the payment’s ecosystem (Fiserv buying First Data, FIS acquiring Worldpay, etc.). What do you think this signals in terms of the new landscape of the industry?
Holly Hughes: I think the trend will continue, and we’ll see more consolidation, both with banks and the organizations that serve them in 2020 and beyond.
Ashley: What is your “big prediction” for Payments in 2020? Who will the big players be? Also, what technology/(ies) will lead the headlines in transforming payments as we know it?
Holly: Not necessarily a big prediction, by I think a key issue will continue to be how to balance fraud protection with a frictionless customer experience. How much friction will consumers be willing to accept in order to avoid fraud issues?
Ashley: By next year, 40% of US consumers will be made up of Gen Z. How will this impact digital payments trends as well as how financial institutions respond to changing consumer demands?
Holly: I think the rise of Gen Z will increase the pressure on traditional banks to innovate and enhance their digital offerings, as this generation will be more apt to use services from non-banks offering a customer experience aligned with their needs.