Payment experts from ACI Worldwide discuss developments which are shaping the future of the payments industry. http://www.ACIWorldwide.com
Louis Blatt: People are buying stuff all around the world, in new ways and different ways, but it's a global market. And, it really impacts the economy, the culture, all the different ways in which people behave around the globe, become obvious in payments.It's complex. It's an extremely complex market. There's people who do payments that are processors on behalf of banks, who then do it on behalf of businesses, who do it on behalf of consumers. And, you can take any niche of this market and think about it or you can think about the payment market in its totality.
Charlie Linberg: Well, it's going to have two aspects. There will be a technical aspect to it, that's going to be a highly integrated, a common data model, probably service-oriented as well, little redundancy, no silos of automation. From a technical perspective, I think, that's the way it'll lay out. From a business perspective, I think, we are going to see more common processing of common payment types. You are going to see debit and ACH, the line's blurring. You may see some lines blurring between some wire and low value payments as well, [a la] the example before with faster pay.
Craig Ramsey: Legacy ACH systems. Those are now going to be retired. People can start to see the light at the very long tunnel, and the light's getting brighter at ?. We will start to see SEPA payments being adopted through choice, not through regulation.
Corporates will start to see benefits of them. So, certainly in Europe we are going to see more and more use of SEPA, more and more standardization of payments processing. With that comes some downsizing of the bank. They lose further revenues. So, what's going to happen is they are going to add value to the payments. They can't offer the same SEPA processing that the bank next door is offering. They have to add value beyond that, whether it be better liquidity to the customers, better reporting, value added services. They will use those services in MTS that we've traditionally used for complex payments processing in a simple payments for SEPA.
Dan Heimann: Watch for disruption. Well, I think, traditional banking services are probably not going to change a whole lot. The way consumers pay for things, I think, is going to change and could be destructive to the whole industry worldwide. Things like mobile applications, and mobile purchases, and being able to do things in a very mobile environment, especially for the new generation that's coming up. They expect that. And, I think that's going to cause some changes.
Craig: Standards will be adopted throughout the world that SEPA has used to get to this stage in the market.
Bernard Delahaye: There's a strong call to the banks to move forward and much faster in innovation. Mobile payments is obviously one of the key ones, so the banks have really to adapt their infrastructure to accept the traffic and the payments coming from the mobile world.
Charlie: Probably my favorite project over the past couple of years, has been one in the UK. It's called, Faster Payments, which you may or may not have heard of. It's where they actually created a new payment instrument, which is pretty exciting, because that doesn't happen all the time. It's a kind of a blend between ACH payments and wire payments. A blend of the characteristics with same day settlement, real-time money movement. It's just very exciting to us because it leverages...it's very compatible with our core competencies.
Louis: I was over in Asia with a customer who was able to show me how they are really reducing the number of branches they have. They are greatly increasing the number of ATMs that they have. And, then they are tying the ATM to the mobile device...
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