Global Banking and Finance Review: Cognizant’s Vice President and Head of Banking and Financial Services in the UK and Ireland Says Digital Platforms Mark a Pivotal Moment for Payments

“New payment platforms, combined with their use of ‘tokenization and TouchID’ as a security measure, add a new dynamic to the payments landscape and provide an enviable proposition for customers and merchants,” says Tony Virdi. Excerpts:

“In a world where even major corporations are subject to hacking and personal data being compromised, companies need to ensure they have robust security in place, especially when financial information is involved. In particular for merchants, fraud and risk-related losses can be reduced significantly, and the resulting savings for card issuers should justify a case for increased adoption.

Some banks are rolling out their own digital payments services, through Zapp, for example, enabling customers to make online transactions through a “pay by bank” application on mobile devices or are planning to roll out Apple Pay later on in the year.

As such, this could be a pivotal moment for payments in general as the need for the use of cards for small payments may be reduced. This is particularly relevant in countries where credit cards were never widely adopted in the first place and the banking structure is not as widely spread as in Europe—especially in light of the economics of card models changing adversely through the capping of inter-change fees.

The arrival of Apple Pay gives any retailers or banks which have lagged behind on mobile a very powerful incentive to catch up rapidly, since consumers will assume a smooth mobile experience as the norm.

Apple has a huge advantage in that its loyal fan base is already accustomed to making electronic payments using its technology and, crucially, they have learned to trust the brand with their payment details. This trust is linked to the power and influence of the brand, which has been built on a combination of innovation, design and all-inclusive marketing. Very few tech companies have a similar grasp on their customers.

Ultimately, all payments rely on the collaboration between banks, mobile carriers, card networks and merchants.”

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