Often times, when making payments predictions or citing industry trends, Javelin studies are used as support evidence. So when Javelin itself makes some payments forecasts, as it did in its “Top Ten Trends in Banking, Payments, Mobile and Security for 2013,” it’s best to take note.
We made our own 2013 predictions at the beginning of the New Year, and covered a wide variety of payments topics. Javelin’s predictions touch on an equally wide swath of the payments industry, from traditional banking to mobile payments to merchant fees and more.
Let’s take a look at some of Javelin’s more interesting wagers.
FI Alternatives Aren’t Going Away
We already know that prepaid is a growing alternative to traditional Financial Institutions (FIs), and Javelin warns non-traditional players are chipping away at FI trust as well. The research company cites Apple, Google, mobile carriers and others as companies persuading consumers away from FIs, and puts traditional institutions on notice.
“It’s difficult to rebuild trust once it erodes,” said Mark Schwanhausser, Javelin’s director of multichannel financial services. “FIs that put themselves in position as proactive, straight-shooting advisers will reap trust and loyalty.”
Consumers Want Omnichannel Banking
“To correct current shortcomings, FIs will need to change their perception of omnichannel banking as necessary rather than novel.”
That quote comes from Mary Monahan, Javelin’s EVP and research director of mobile, who highlights a growing trend: consumers want to be able to engage in banking practices from multiple devices. Javelin notes that services and solutions don’t have to be identical across all platforms, but that they do have to work and be secure.
DDoS Attacks Will Hit Your Phone
Part of the reason the reason mobile banking apps need to be so secure is because a wave of mobile DDoS attacks is coming. According to Javenlin, two out of every three mobile devices are left unprotected by security software, and the increase in mobile malware detection has been sharp.
“FIs and other organizations with a vested interest in the security of the mobile channel will be best served through a partnership with security vendors with the goal of increased adoption of mobile security software,” said Al Pascual, industry analyst of security, risk and fraud.
No More Settling For Network Pricing Practices
Transaction volume may still be in the hands of major card networks, but thanks to the Durbin Amendment, retailers are gaining more power when it comes to pricing practices. Javelin expects merchants to continue to push for more of a say over transaction fees and pricing schemes in 2013, and believes they’ll use legislative action to do so.
“To help merchants remain vested in existing payments options, providers should identify new ways to support retailer’s payment needs and reinforce the merchant value proposition,” concluded Beth Robertson, CCM, director of payments research.
To read more about Javelin’s 2013 payments predictions, click here.
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