The coronavirus pandemic has demonstrated just how vulnerable our business and financial services landscape is, with the world now preparing for its first recession triggered solely by a pandemic since 1870. We know that business recovery will be slow and could continue to be painful for many, and so financial institutions must make payments as seamless as possible to facilitate circulation.
As banks give consideration to segment propositions and product features, they should take into account the winners and losers in payments. The consumer is increasingly comfortable with formless, tokenized, contactless transactions, as bricks and mortar and travel have lost out to online and stay at home. Speed remains important as does the current account, so faster payment systems (FPS) and BACS are still strong. We believe that cash and cheques have become less popular as a result of Covid-friendlier alternatives. Credit cards and facilities should also be concerned about the adoption and penetration of point of sale credit and BNPL into the main stream financial behavior of the online shopper. Any sharp customer proposition should bear in mind that the consumer and merchant have changed, or at the very least have adopted new ways of paying tactically and quickly.
Download our article to discover who the clear winners and losers of payments are, and the elements of the landscape where success or failure remains to be seen.
For more information how Capco help your organization define its post-COVID-19 customer propositions and payment products and features, please contact Ian Hooper, Partner & Head of Banking & Payments.