What do those inside the payments industry believe is driving the change in the world in which they operate?
That’s the question Ixaris and Anthemis aim to answer in a new release titled “Payments Innovation Jury Report 2013”: a report based on “input from 25 payments innovators from around the world.” These innovators aimed to pinpoint the technologies, trends and topics that will drive payments forward in the coming years, as well as the most dynamic locations and those most responsible for enacting change.
PYMNTS.com breaks down some of the Jury’s most interesting findings and responses in this Data Point.
Technology Trends: What Drives Innovation?
The Jury states that the spread of smartphones and tablets figures as the biggest driver of innovation in payments, weighing in at a whopping 52 percent. The availability of open APIs was cited as the next-biggest contributor at 36 percent, with a wide gap opening up between any other catalysts. Cloud computing gained 8 percent of the vote, while contactless technology garnered just a 4 percent response. The rise of big data and analytics, somewhat surprisingly, received zero votes.
“Smartphones & tablets have the potential for revolutionizing payments, “ the council wrote. “Not because of mobile payments, which everyone is talking about, but because they will radically change the POS and the informational needs of merchants, which will in turn, drive more analytics and more promotions and merchandising ideas.”
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Executive Action: Who’s Best Suited To Enact Change?
One interesting question the Jury looked at concerned which individual in an organization had the most ability to lead payments innovation. Unsurprisingly, CEOs finished first with 36 percent of the vote, as they determine the overall course of their companies. Those in Head of Product positions finished second with 28 percent of the vote, while 16 percent opted for the “all exec management” option. Only 8 percent believed those with a Head of Innovation title were most responsible for payments innovation, while another 8 percent opted for “other.” CTOs finished last in the survey, weighing in at only 4 percent.
“It’s hard to say who should drive the innovation agenda but if an organization has a head of product who is not innovative the organization is in trouble in today’s financial services world,” the Jury claimed.
Global Innovation: The Next Two Years
According to the Jury, Asia figures to see most innovation over the next 24 months, finishing with a rating of 3.9 on a 0.0-4.0 scale. Africa and North America tied for second with 3.5 ratings, while Latin America finished just short of that mark at 3.4. Western Europe lagged behind with a 2.9 rating, while Central/Eastern Europe brought up the rear with a mark of 2.8.
“Asia-Pacific seems poised to become the largest emerging market for mobile banking and retail payment initiation over the next few years,” the Jury commented.
“It is hard to change existing platforms. So more developed countries have bigger challenges innovating.”
To read more of the Jury’s findings, download the full report here.
