The Merchant Payments Digest is a regular update from Oliver Wyman to keep merchants apprised of developments in the rapidly shifting payments space.
Transformational Payments Solutions:
Rules and Standards:
Customers’ Evolving Expectations:
COVID-19 has rapidly transformed consumers’ payment habits, forcing merchants to adapt quickly. According to Visa’s Back to Business Study, about four in five consumers (78 percent) have made changes to the way they pay for goods and services, including the use of contactless payments. Nearly half the consumers surveyed globally (48 percent) indicated that they would not patronize merchants that only support payment methods that require contact with a cashier or other shared device such as a POS card reader.
ING is piloting a tokenized bank account based payment service. Using this offering, consumers can pay directly from their bank accounts for online purchases, without the account credentials and other sensitive data being shared with merchants. Once a customer consents, unique tokens are assigned for every merchant that a customer shops at, which can also be used for repeat purchases and subscription payments. Customers can control the tokens either on ING’s banking app or the merchant’s app. Ahold Delhaize, the supermarket chain is participating in the pilot with ING.
Source: NFC World
Facebook is creating Facebook Financial to pursue payments and commerce opportunities. Facebook Financial’s objectives will be to bring together all of the payments offerings to support contextual commerce across the Messenger, WhatsApp, and Instagram applications.
- Walmart is partnering with Paymentus to enhance the bill payment experience for consumers in store and on its app. Paymentus supports instant payments via cash, debit card, and digital wallets across multiple channels including web, mobile, IVR, text, email, chat, voice assistant, POS, and agent assisted channels. PayPal and Amazon have also partnered with Paymentus for bill payments.
Source: Yahoo Finance
- Wayfair is launching a private label and co-brand credit card in partnership with Citi Retail Services. Both cards will offer cashback rewards of five percent or financing up to 60 months on eligible Wayfair purchases, in addition to rewards ranging from one percent to three percent for off-us purchases on the co-brand card.
- Pay-at-pump using Amazon’s Alexa is now live at over 11,500 ExxonMobil gas stations in the US. By saying “Alexa, pay for gas”, customers can trigger the payments process, which is facilitated by Amazon Pay, using the stored credentials on their Amazon account. Amazon has collaborated with Fiserv to activate the pump and to ensure a secure payment experience using tokens. The capability is currently available across Alexa-enabled devices such as Echo, in Alexa-enabled vehicles, and through iOS and Android versions of the Alexa app.
Oliver Wyman is a global leader in management consulting with offices in 60 cities across 29 countries. Our Payments practice works with constituents across the payments value chain to deliver insights with real impact, combining deep industry expertise with powerful consulting capabilities.
To have a discussion with Oliver Wyman on your payments issues and opportunities, please contact Beth Costa, Rob Mau, or Rick Oxenhandler at email@example.com.
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