What’s Driving Payments Innovation In Europe

Europe has a developed payments infrastructure, but the adoption of new innovations and the changing ways consumers pay are both affecting the continent as they have the U.S. – the payments game is changing. PYMNTS caught up with former MasterCard Head of Prepaid for the U.K. and Ireland, Stephen Grice, who’s now i2c’s new General Manager for Europe. Grice gave us his insight into which trends are driving market growth in Europe, how he plans to expand i2c’s presence in the region, and the critical payments lessons he’s learned to help prepare him for success in the new role.

Stephen, as the new General Manager for i2c Europe, what are you observing as the top emerging opportunities in European eCommerce?

SG: Europe, as you may know, has quite the developed payments infrastructure. There’s some level of standardization both in payment mechanisms and regulation, certainly across the European Union. However, the pace of adoption of new form factors and ways to pay differ greatly in Europe. Whether that be the low adoption of credit cards in Germany, or the cash-centric habits of the Nordics and Italians, there are different markets with different stages of development. So it’s a complex developed market, but certainly with many opportunities.

I guess you can’t talk about emerging opportunities without talking about the changes in the way consumers physically pay. The rise of the smartphone alongside the adoption of NFC in Europe has given both consumers and payments businesses a whole new world of opportunity. NFC adoption and new terminalization, which is happening in the U.K. and across Europe, is still a bit patchy in some areas but there is a definite groundswell of new payment experiences.

The expected launch of Apple Pay in the U.K. this year is widely publicized, and eagerly awaited. There are other relevant challenges to this space, particularly in the U.K. and also in Europe. With players like Barclays and Zapp, and to a lesser extent, GooglePay, which is already in the U.S., I feel that there will be a convergence at some point. That all depends on the customer base you can access to promote the payment solution, along with financial institutions adopting a standard, if they ever will. But Apple Pay only represents one portion of smartphone sales – there are still challenges.

In your opinion, what trends are driving market growth in Europe and how do these vary by country?

SG: The sheer explosion in choice and methods of payment are empowering consumers, whether that be alternatives to traditional high street bank relationships, or the physical act of making a payment. Clearly, mobile devices and the convergent effect is a key driver. You only need to watch people on a bus or train to realize the power that mobile devices have on people, and also for businesses to reach them quickly. The noise around wearables is interesting, and we’ll wait to see how that grows. But ultimately I think it’s all about convergence.

You are tasked with expanding i2c’s presence in Europe. What strategies do you have in place to succeed at this task? 

SG: Firstly, just to be clear, we’ve already had a good headstart in Europe with recent alliances and deals. Our business is not starting from scratch but it needs more attention and needs people on the ground, and that’s what we’re doing now.

We want to be the No. 1 prepaid processor in Europe for debit and credit. It’s a tough task, as there are many players in the market, but I strongly believe i2c’s unique propositions and products can make a difference. And certainly we’ll try to grab some of the market share from legacy players that don’t have flexibility or the ability to move at a fast pace.

With the high velocity of new prepaid programs launching, and the need for more agile processing and program management options, we’re well placed. But there are still many areas where we can add value, and there are key verticals like government payments, money transfer, and the slow but significant change in banking habits and choice. Habits are shifting day by day, creating new opportunities.

You have 28 years of industry experience, including your most recent role as Head of Prepaid, UK and Ireland, for MasterCard. What lessons have learned during that time, and which can you apply to your new role at i2c?

SG: Well, I started my career in financial services stuffing checks into customers’ statements. To give you an example of the change that’s happened, that bank branch that I worked for has less than 10 people staffed to service a greater number of customers. The whole point there is that the financial institution dictated what you could or could not do when it came to choice.

Today, choice is firmly in the hands of the consumer. There is still some level of inertia around financial services and the fear of change, but there are choices. The consumer is really in control.

What I’ve learned is that it’s always about what the customer wants – make it simple and easy to use. If you can do those things and get to the customer, you will win.

For me, I’ll use my experience, especially having heard regularly about customer pain points with their embedded processors, to give them new options. At i2c, we empower customers to take control of their businesses, whether that is by providing them with instant program change and functionality which isn’t available with all competitors, or multiform factor design, or a release schedule that’s measured in weeks, not months or more. I’m really excited about the opportunity, and I think we do have a product set that can make a difference in Europe.

Stephen Grice
General Manager, Europe for i2c

Stephen has more than 28 years of experience in Financial Services. Prior to joining i2c, he was Head of Prepaid UK and Ireland at MasterCard. Previously he has been Product and Marketing Director for Citigroup Global Cards, and has served as Business Development and Product Director with Virgin Money. Stephen has extensive global experience spanning over 20 countries and has worked in South America, the U.S. and Asia while also managing extensive projects in Europe. As General Manager, Europe, Stephen is responsible for driving i2c’s continued growth across the European continent.

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