The document discusses key trends and dynamics in the payment industry in 2021, as presented by Rahul Patel and Srishti Dey. It notes the increased demand for frictionless experiences through mobile payments and digital wallets. It also discusses the growing adoption of real-time payments, the gains of AI/machine learning in payments, expanding mobile commerce, challenges of cross-border transactions, benefits of cloud migration, impacts of open banking and COVID-19 in accelerating digital payments usage, and the value of data in financial decision making. The closing lines emphasize catering to changing customer needs through convenient payment options and the need for industry players to evolve quickly.

1. Dynamics of Payment
Industry in 2021
Presented by:
Rahul Patel
Srishti Dey

2. Agenda
 Introduction
 Trends & Dynamics of Payment Industry in 2021
 Closing Lines
 Q&A

3. Introduction
 Rapid changes in the banking and payment processing industry
 IT Companies rushing to adopt
 Real revolution due to rapidly changing landscape
 Economic
 Political
 social conditions
 Regulations

4. Increased
Demand for
Frictionless
Experiences
 Checkout process barriers minimized – online & offline.
 Number of steps to make a purchase reduced by streamlining the
checkout process.
 Convenient choices
 Mobile Payments
 One-Click Payments
 Auto-Renew Subscriptions
 Contactless Payments
 DigitalWallets
 Other invisible payment methods

5. Forecast for

6.  COVID-19 accelerated
adoption.
 38% of consumers perceive
contactless as a basic feature
of payments -The Futurist
Group study
 Half a world population will
use mobile wallets by 2024 -
The Juniper Research
 From being alternative
payment methods, they are
quickly becoming consumers’
preferred means of
transacting.

7. Worldwide
Adoption of
Real-Time
Payments
 Enables users to send and receive money in seconds
 Due to rise of
 Smartphones
 P2P apps
 social pay
 digital currencies
 biometrics
 real-time settlement systems
 Real Motive – meet growing demands of customers

8. Worldwide
Adoption of
Real-Time
Payments
 Competition from new, aggressive players with fast-growing
business models
 Other factors include
 merchant expectations
 regulatory pressure
 globalization

9.  RTP will help treasuries
manage working capital
and shorten the time it
takes to recognize a
receivable.
 Push transactions will
enable anyone to
authorize payment
securely.
 Additionally, immediate
payments will improve
data posting and
management of processes
resulting in lower
operational costs.

10. AI and
Machine
Learning Gain
Momentum
 Capitalize on data
 Process automation and fraud detection
 AI-embedded tools define the future of payments
 Read customers' operations history
 buying and spending habits
 predict their future activity
 suggest an alternative payment method
 Extremely reliable in customer service

11. AI and
Machine
Learning Gain
Momentum
 Voice-activated transactions
 Bank of America – “Erica” – a chatbot
 balance notifications
 report updates
 money-saving tips
 other simple customer services
 Wells Fargo – Predictive Banking – AI-based smartphone app
 recurring bill payments
 travel plan alerts
 money-saving alerts
 over 50 other rudimentary functions

12. Mobile
Commerce
Expansion
 People spend on an average, over four hours on their phones each
day – RescueTime research.
 “BUY” on Social Media & “one-click checkout” options
 Mobile phone app downloads reached 204 billion in 2019 which
increased to 218 billion in 2020 - Statista
 Money management tools & financial wellness scores
 No more inconvenience of using a physical credit card
 Digital-only banks

13. Cross-Border
Transactions
 Traditionally – slow, expensive, and time-consuming.
 Hard currency compounds this, factoring in government
regulation.
 Barriers to entry lead to find alternative methods to streamline
international payment systems.
 Digital currencies and omnichannel payments
 Continuous improvements in APIs for faster real-time operations.

14. Cloud
Migration to
Suit
Tomorrow
 Store, access, and process data over the internet, not on physical
devices. It promotes
 Agility
 Scalability
 Low operational costs
 Better & robust security
 Ease of migration
 Minimal Downtime

15.  To leverage data to its
full potential, you need
it on the cloud, so your
other systems can easily
access it.
 Figure out whether
private, hybrid,
community, or public
cloud services best
match your company’s
needs.
 Develop a migration
strategy for critical
systems that need a
revamp.

16. Open
Banking
Accelerating
Innovation
 Open banking is now a global trend opening
 According to research from Accenture, 30% of small businesses
and 40% of large corporate enterprises use open banking.The
same report indicated that this trend is expected to boost organic
growth by 10% over the next 3-5 years.
 Real-time credit transfers
 Help businesses ship products right away
 Full access to customer information
 Customize offers while safely managing risks.
 Open banking is centered on an API

17. COVID-19
Accelerates
Digital
Payments
Usage
 The COVID-19 pandemic marketed a tipping point for the cashless
society.
 Sharp decline in the use of cash as contactless payments and IoT
payments exploded.
 In the early months of 2020, over $4.4 million worth of digital
payments were transacted.That is a 14% increase from the
previous year, according to Statista.
 Regulators recommended a shift to cashless systems to curb the
spread of the virus.

18. Data Remains
the Most
Precious
Resource
 Data – primary resource in financial decision-making
 Understand customers' shopping behavior and spending patterns
 Delivering relevant product recommendations
 Targeting ads
 Customizing user experiences
 E-commerce giants likeAmazon already use data to target buyers
for upselling, cross-selling, and personal offers.
 Make decisions that scale your ROI
 Banks can analyze customer purchases and recommend different
products. Loans officers can monitor those receiving large bills
and propose products to lower their costs.
 Calculate clients' risk, based on past payment history and social
media comments.

19. Closing Lines
 Massive transformation & rise of convenient alternative payment
industry trends due to convenience, speed, and easy functionality.
 Cater to customers' global needs
 Start early to outshine competitors and emerge as a trusted
business that caters to the changing needs of its customers.
 Disruptions forcing to evolve quickly to retain and grow their
customer base.
 The right software partner may be just what you need to stay
within budget and make needed changes.

20. ThankYou
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