Money 20/20

Minkasu On Mobile Payments Trends And Consumer Friction

The PYMNTS team caught up with experts in the payments field to ask them their views on industry trends, predictions for the coming year and what their ideal payments system looks like.

Anbu Gounder, co-founder of Minkasu (a mobile payments solutions provider), shared with us what he and his company think are the biggest trends in mobile commerce, what has and will ignite the mobile commerce industry, and what challenges still exist that are creating consumer payments friction.

PYMNTS: What are the big trends you’re seeing in payments in 2015?

AG: Mobile shopping has already taken off. Biometrics are here to stay. Customers are more willing to try our mobile payment solutions. Until last year, consumers were not sure if they would be willing to use their smartphones for making payments. … We believe Apple Pay has done a lot of heavy lifting for us. In terms of challenges, only 15 percent of the 60 percent of shoppers converse into real transactions.

PYMNTS: What are some of the challenges you’re seeing in mobile payments?

AG: In terms of challenges, only 15 percent of the 60 percent of shoppers converse into real transactions. There is a lot of friction on mobile payments on the eCommerce and mCommerce transactions especially. More websites are becoming mobile optimized, but there is no good mobile payment solution in the marketplace which makes the mobile browser transactions quick and easy and secure. There’s a lot of noise in the marketplace with several payments solutions. It is confusing to the average consumers.

PYMNTS: What are your predictions for payments for next year?

AG: We think mobile payments are going to accelerate at a faster rate. We believe the market needs a mobile payment solution that can make mobile browser payments quick and easy and secure. And social commerce and buy buttons will gain traction.

PYMNTS: What does your ideal payments system look like?

AG: We think an ideal payments system would be mobile payments solution, of course, that works across all channels — all true multi-channel solutions. It is neutral to all platforms, card networks, banks, operating systems and devices. A solution that enables all funding sources: credit card, debit card, ACH bank transactions. … An ideal payment solution should be able to get the same preferential card percent rates across all payment channels.

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More than 63 percent of merchant service providers (MSPs) want to overhaul their core payment processing systems so they can up their value-added services (VAS) game. It’s tough, though, since many of these systems date back to the pre-digital era. In the January 2020 Optimizing Merchant Services Playbook, PYMNTS unpacks what 200 MSPs say is key to delivering the VAS agenda that is critical to their success.

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