Over 75% of financial institutions, retailers and billing organisations globally are planning to increase their spending on payment systems due to increasing competition, according to a new study by ACI Worldwide and market research firm Ovum.
More than 1,600 executives representing companies across the Americas, Asia-Pacific and EMEA participated in the survey.
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Nearly 71% of European executives said that new competitive pressures and the burgeoning threat of fintech are driving investments in their own payment systems.
Nearly 70% of the retailers cited theft of customer payment details as major concern, while 59% referred rise in card-not-present fraud due to surge in e-commerce as a ‘pressing issue’.
According to the report, 57% of European executives opined that consumers will benefit directly from immediate payments. Moreover, 59% of transaction banking executives also said that businesses will benefit directly from improved liquidity management, lower risks and faster payments.
Ovum principal analyst, financial services technology, David Bannister said: "The payments industry is undergoing radical change that will have far-reaching consequences for banks, billers and merchants, as well as for the consumers and business customers to which they provide services. How all of the players in the industry adjust to these changes and interact with each other will be a crucial factor in their future success."
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By GlobalDataACI Worldwide senior vice president Paul Thomalla said: "For all of these organisations, the key takeaway is that competitive pressures are driving up spending in the marketplace. Spending small, incremental amounts will only lead to an erosion of market share.
"The payment initiators of the world want to work directly with payment operators. By doing so, they will be able to lower payment costs, reduce complexity and increase investments to stave off the threat of new competitors."
