IDG Connect: Cognizant’s Head of Banking and Financial Services Practice in the UK & Ireland Makes a Case for the Payments Ecosystem to Adapt to Digital Transformation

“When it comes to providing payments methods through social media, security and regulatory compliance will be a big challenge that needs to be addressed,” says Tony Virdi. “While many people will no doubt recognize the convenience of paying for goods and services through Facebook, such providers will really need to work hard to gain trust and ensure they have the right infrastructure in place to support it. Central to this is making sure that sensitive bank information is safely handled and stored, while reassuring customers that this is the case. Above all, making the entire customer experience as similar and seamless as possible to other, alternative and already tried and tested financial services providers such as PayPal will encourage consumers to adopt this new method.” Excerpts:

“The recent news that Facebook is seeking regulatory approval in the UK to offer mobile payments through its platform is just another example of the rapid evolution in mobile payments; it is happening right across Europe. But what does this mean for consumers and the established industry?

Over the years, we have transitioned from bartering to tender and cash, moving into cheque and card payments, with many countries now also embracing online and mobile payments.

In our recent report published  in conjunction with the Financial Services Club and VocaLink, we explored the state of the world’s largest payment infrastructures and how market conditions are changing the game. Overwhelmingly, the evolution of technology and in particular, the rise of online and digital channels, is having a significant impact

While these mobile, digital and social changes are mostly impacting the front end of retail payments, to optimise customer experience, it is the back end integration of new payment channels that proves the most challenging. Co-operation between the many parties is central to the success of any new services. From banks to merchants, card issuers to payment processors, mobile operators to handset manufacturers, working together to develop a multi-channel payments process that is user-friendly is vital.

The spotlight on payments resilience, the implications of ring-fencing on bank payment systems and the potential for account number portability are all pertinent issues in this market. When it comes to providing payment methods through social media, security and regulatory compliance will be a big challenge that needs to be addressed. Central to this is making sure that sensitive bank information is safely handled and stored, while reassuring customers that this is the case. Making the entire customer experience as seamless as possible…will encourage consumers to adopt this new method.

There is a huge opportunity for the payments ecosystem to adapt and evolve in line with the digital transformation that is changing the rest of the world.”

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