Munich / Zurich (ots) –
– technology giants and startups undermine the traditional business model of the leader
– payments will continue to be a very lucrative business
– provider have the dealer business respond to changes in customer behavior and technological developments
– Financial Services become technology partners
The established business models in the credit card business are severely threatened. From aggressive start-ups, but also from technological change increasingly risk going out. This is the conclusion the study “Five imperatives for navigating turbulence in the payments ecosystem” of the international management consulting firm Bain & amp; Company.
vehemently attacking international high-tech giants and startups with their financial and service products the lucrative revenue streams independent credit card companies and banks – worldwide and in all customer segments. In this upheaval, the incumbents of non-monetary payment systems need to prepare, they do not want to be threatened in their existence. The need of the hour is to adapt to the technological innovations, while optimizing the cost. Get her that the financial sector could use this revolution in payments even for their benefit. “The boom in online payment together with its above-average profit margins remains a long-term trend,” says Ingolf Zies, partner and financial services expert at Bain & amp; Company. According to Bain study how rising global sales in the online payment of today’s 15 billion US dollars to almost 20 trillion in 2020.
The five key challenges for modern payment service
Know your customers, with convincing offers binds to and promising payment systems used, is among the winners including in the financial sector. This requires:
1. Control of interfaces for payments
“credit card companies have their dealer business against the attacks of newcomers defend,” says Bain Expert Zies. “Otherwise, they will have to be limited to the business with less lucrative standard services in the future.” Key to the successful defense of the dealer interface are integrated solutions – for example for POS and payment process – as well as modern hardware like tablets. Be in the United States alone, according to Bain study 65 percent of medium-sized companies change over the next three years to these integrated payment solutions.
2. Customized deals each customer segment
credit card companies need to respond to the differentiated needs of the trade and take into account the earnings potential of different types of customers. Large national corporate clients usually bring only low returns, because they often develop themselves or write out regardless of the credit card business solutions in the customer interface. To remain leaders in this segment usually only the little-margin transaction processing. By contrast, value added services can be easily positioned in small and medium-sized customers, resulting in structurally higher returns in this segment. Even with global corporations offer online for credit card companies good opportunities for returns. For this but they must be able to meet the complex needs of these customers, particularly in the settlement of other payment methods, fraud prevention and minimization of payment interruptions. The fact is: The time when the industry was able to treat their customers as a homogeneous mass, are over
3. Protection and development of own marketing channels
4. Openness to new payment systems
Consumers can various between 200 choose payment options. These include the classic credit card, cell phone purses and real-time payment systems. The problem of credit card companies is often you lose the sovereignty over the customer interface, can not affect that process the customer uses and valuable customer data go past them. To make matters worse, that it is not possible to predict which payment systems will prevail at the customer. Despite this uncertainty, the industry should not ignore the technological innovations. Because the merchant will offer consumers more and more optimized and linked with innovative value-added services payment options. This new complexity opened the credit card industry interesting strategic options when it is positioning itself as a knowledgeable problem solver for trade.
5. Clever utilization of customer data
Never had detailed knowledge of a checkout as valuable as today. In real time to know when and where consumers spend as much money might be for credit card companies as the basis of significant additional income. So far, however, the industry is struggling in order to lift these data treasures. Three major challenges to be faced here. Firstly, the payment service provider must defend the access to bank data, as credit card data is increasingly being replaced by anonymous Root. Second, the supplier must determine what services they offer their retail customers based on these consumer data. This includes the optimization of business and payment processes or the development of sophisticated and targeted offers for end users. And thirdly, it must be clarified whether the payments seller have sufficient analytical skills for data analysis and how the demand for this new service justifies additional investment.
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Successful repositioning is based on honest self-analysis
credit card companies with dealer business must no longer remain in their previous identity as a payment service provider of trade. Farsighted providers position themselves instead as a technology partner and -ratgeber. However, this requires advanced business model in addition to the proven virtues of safety and reliability also have a higher capacity for innovation and flexibility. There applies himself an honest self-analysis to undergo: Suffice corporate culture, analytical skills and competency data already the new requirements? Meets the targeted business model sustainably meet the needs of customers? And which segments is the achievable added value in proportion to the necessary investments? “Only those who are the challenges arises, can demonstrate its customers unique and at the same time future-proof solutions,” says Bain partner Zies.
Bain & amp; Company
Bain & amp; Company is one of the leading management consultancies. We support companies in important decisions on strategy, operations, technology, organization, private equity and M & A – and the industrialized and across countries. Together with its customers, working Bain out to achieve clear competitive advantages and thus a sustained increase in enterprise value. At the heart of results-oriented advice are the core business of the customer and strategies to develop a strong core out new areas of growth. Since our founding in 1973, we are measured by the results of our consulting work. Bain has 53 offices in 34 countries and employs 6,000 people worldwide, 700 of them in Germany. More about Bain below: www.bain.de.
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