Breaking Down The Payments Council Roadmap

If you were to compare the British payment system to a physical landscape, it would probably be downtown Westminster Road during rush hour.

Earlier this summer, the Payments Council released its first edition of a report called, the “Payments Roadmap,” which outlines the UK’s current payment landscape as well as future recommendations for developmental strategies.

The UK Payments System is at a crossroads, and consumer needs are changing with the rapid development of technology. The UK’s current payments infrastructure is performing well and is quick to deliver innovation. However, just like any other sector of business, an assessment of its present performance alone is not enough.

The Roadmap was created to help the public understand how the UK payment system can be improved, as well as to better understand future goals.

PYMNTS.com is helping to break down the roadmap, and will report a new section from the guide each week.

This week: A happy customer is a happy commodity.

Customer Requirements

The roadmap identifies that a key goal for improving payments is to remain customer-focused. The Payments Council met with over 300 stakeholder groups last year in attempt to grasp a better understanding of what consumers wanted.

On a very basic level, the council discovered that most consumers wish to have a variety of choices for payments. They also want to have simple, accessible, low-cost and secure payment options.

The Roadmap further acknowledges that consumers differ in needs according to their variations in lifestyle. These differences are a result of the country’s economic, social, technological and judicial contexts that payments are created.

The Payments Council analyzed six different prototypes to illustrate the possible consumer differences and how to provide the appropriate services for each one.

First Customer: The Affluent Couple With Two Children

These customers have a consistent payment experience both online and offline. They will often interact with social media and have great influence on their children’s spending. This type of customer wishes to have a simple yet secure payments service that is accessible online. Additionally, they want to access the same functions on their smartphones and tablets.

A digital wallet service is recommended for these consumers because they are simple, innovative and easy to use. Financial institutions must offer cross-border account-to-account payments, and virtual currencies to make purchasing goods and services easier for this prototype. This customer also has a busy schedule and demands real-time banking services.

Second Customer: Medium-Sized Charity

This client is more conscious of spending habits and require more cost-effective options. These businesses accept many donations and need a payment system that is easy for collection. However, these charities have strict regulations, thus the payment methods must adhere to these operations. Charities often accept check payments from donors, and need a system that efficiently accommodates this unique need.

Third Customer: Large Multinational Company

The mega corporation’s key requirements include the need for a payments system that can be integrated both domestically and internationally for supply chain partners in other countries. They want good deals on their services because they must frequently buy in bulk.

Large corporations have millions of customers and need a payments system that can quickly remedy payment cancellations, returns and transfers. Additionally, these firms must have a standardized process for card acceptance since they operate internationally. 

Fourth Customer: Start-Ups/Entrepreneurs

Customers just starting out need to have a larger range of payments available for their shoppers.  These merchants are looking to attract as many consumers in the first years of operation and can’t afford any unnecessary barriers.

Small start-ups also require third party providers to help with payment services and need a simple cross-border payment system 

Fifth Customer: State Benefits And Pensions 

This sector of consumers will need additional remittance data to be distributed along with payment transactions. Government programs must have high-security services in addition to advanced ID solutions to authorize citizen payments. This department often dispenses payments to low-income and vulnerable residents who prefer less costly methods.