PAYMENTS THE WAY - SEPTEMBER 2021 - PYMNTS.com
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SEPTEMBER 2021
THE WAY
PAYMENTS
ARE NOW
DONE
WHAT DEFINES YOUR CLIENTS’
PAYMENTS ROUTINE TODAY?
TABLE OF CONTENTS
08 Airbase 48 EVO Payments 88 London & Partners 116 Spreedly
The Growing Importance of The Push for a More Digital Payment Experience More Tech Isn’t Always the Answer The Rise of Platforms
Spend Management for Today’s Companies Brendan Tansill, president, the Americas Allen Simpson, acting CEO (and Payments Orchestration)
Thejo Kote, founder and CEO Randy Guard, chief product officer
52 FIS 92 Mastercard
12 Amazon Web Services (AWS) Consumers Now Demand Options
Account Opening at the Speed of Customer 120 TreviPay
Contactless Payments Continue in Their Payments Experience
Expectations The New Normal: B2B Payments Must Be
to Drive New Waves of Innovation Dave Fura, SVP, head of card solutions
Jess Turner, EVP, new digital infrastructure Like B2C Transactions
Mark Smith, head of payments for financial services and FinTech Brandon Spear, CEO
56 FISPAN
16 Amount What Post-Pandemic Success Will Look Like
96 Mitek Systems 124 Versapay
Transforming Banks Into BNPL Pacesetters for Banks and Businesses
Cameras, Wipes and Swipes Replace Cash Breaking Down Barriers Between Customers
Adam Hughes, CEO Clayton Weir, CEO and co-founder
Stephen Ritter, CTO and AR Teams
Craig O’Neill, chief executive officer
20 Billtrust 60 Forter
Suppliers Put the Pedal to the Metal Retailers Need to Combat Fraud and False 100 Payoneer
to Convert B2B Buyers to Digital Payers Declines to Win Lifetime Customers Go Digital, Go Local 128 Very Good Security
Steve Pinado, president Liron Damri, president and co-founder Charles Rosenblatt, chief strategy officer The Rise of Virtual Cards
Mahmoud Abdelkader, CEO
24 Blackhawk Network 64 FortisPay 104 Paytronix
Hybrid Payments: The Key to Unlocking Choice and Convenience: Defining Consumer Today’s Restaurants Take Cues from eCommerce 132 Vindicia
the Connected Economy Payments Today Charles Gray, chief revenue officer 2021: An Evolving Digital Future for Payments
Talbott Roche, president and CEO Ron Dichter, CRO and eCommerce
Roy Barak, chief financial officer and
108 Plastiq chief operating officer
28 CareCredit 68 i2c COVID Drives Small Businesses Re-platforming
Patients Are Empowered Consumers, and Amid a Host of Changing Routines, Agility and – and a Renaissance in Digital Payments
They Expect Personalized Payment Options Reliability Become More critical Than Ever Stoyan Kenderov, chief product and 136 YayPay by Quadient
Alberto Casellas, EVP and CEO at Synchrony’s Jim McCarthy, president technology officer The Technologies That Are Transforming
health and wellness platform AP and AR
72 IDEMIA 112 PSCU Anthony Venus, chief strategy and product officer,
Mobile Phones: Connecting the Physical and accounts receivable automation
Touchless Payments: Ease, Convenience and
32 Corcentric Digital Payment Experience Safety Drives Accelerated Adoption
Why Focusing on the Supplier Experience Matt Cole, CEO of secure enterprise transactions Denise Stevens, SVP, chief product
Pays Off
and digital officer
Matt Clark, president and COO
76 Ingo Money
36 Cybersource Increasing the Power and Penetration
Merchants Face off Against Evolving Fraud Tactics of P2P Payments
Andre Machicao, senior vice president, global head Drew Edwards, CEO
of product and solutions
80 Limonetik
40 Digital River Clients’ Payments Routine: A joke or Utopia?
The Revolution Is Here for B2B Buyers Hassan Issa, COO
Eric Christensen, chief payments officer
84 LoginID
44 Early Warning The ‘New Normal’ of the Delivery Business
Faster Payments are Redefining Consumer Simon Law, co-founder and CEO
Expectations
Lou Anne Alexander, chief product officer
33
PAYMENT EXECS
POINT TO What’s new initially feels unfamiliar, but with
practice and necessity, ultimately becomes
PAYMENTS’ the ‘new normal.’ In this eBook, 33 C-Suite
payment executives weigh in on how the
‘NEW NORMAL’ pandemic forced consumers to embrace new
contactless forms of payment as something
they needed, until it became something
familiar and preferable.
What begins as a seismic shift gradually
becomes the new normal.
After all, repetition breeds familiarity. Familiarity
breeds adoption, until what was once unfamiliar,
or perhaps even uncomfortable, becomes
second-nature.
The Way Payments Are Now Done
That’s especially true in payments, The payments experts who weighed Most of these behavioral shifts will
where the pandemic has made us all in here reflect on the ways FinTechs remain in place after the pandemic
shift to new payment modalities, and have helped bring new ideas to the is finally in the rearview mirror, the
any number of alternative payment forefront of consumer payments. respondents said – while buy now,
methods – online, in many cases – But we’d be remiss in glossing over pay later (BNPL) options will continue
with haste. the fact that companies have had to to offer consumers convenience and
adapt, too. visibility into cash flow.
In this e-Book, we asked 33 C-suite
executives to give a sense of what’s After all, the pivot to working from If there are common themes as
changed in the past year – and to home means everything has been to what are part and parcel of the
predict what’s to come. done remotely, which in turn means new “normal” for payments, they
that spend management has had to would be “choice” and “speed.” The
The way it’s always been done? Well, abandon slow, manual processes. lines between physical and online
that’s anathema – and, increasingly, commerce are blurring, but we
cash has become anathema, too. Behind the scenes, infrastructure all want to be able to make the
Contactless debit and credit were considerations have been top transactions we need to make 24/7 –
quickly embraced amidst fears of of mind for traditional financial with a range of options on hand.
germs – and now those payment institutions (FIs), platforms and
methods are prized for their merchants, all in a bid to meet Read on to see what’s changed –
convenience. consumers where they want to be and the changes that remain just
met. FIs have had to drastically over the horizon.
reconsider the branch setting.
© 2021 PYMNTS.com All Rights Reserved 6
Airbase
THE GROWING
IMPORTANCE OF
SPEND MANAGEMENT
FOR TODAY’S
COMPANIES
2
021 was a very interesting year – not only for Airbase, but also for the
spend management sector as a whole.
Just take a look at recent activity in this particular area of FinTech
— we’re seeing a significant shift in payment systems for company
THEJO spending. This has been made possible by the opening up of the payment
KOTE infrastructure, allowing software companies to build deeply integrated workflow
products. Companies are waking up to the fact that if they don’t change their
Founder and CEO
approach, they face an increasingly archaic world of slow, manual processes.
© 2021 PYMNTS.com All Rights Reserved 8 © 2021 PYMNTS.com All Rights Reserved 9
Thejo Kote
This has been reflected in the of approvals, reimbursements and management model to provide an
millions of dollars invested in the repetitive, manual bookkeeping tasks. intuitive, complete platform for all
industry, with the likes of Airbase, What’s more, inefficient processes non-payroll company spend.
Ramp and Brex raising impressive and inadequate tools meant that I
figures in their respective funding could not get an on-demand, real- Our network is frustrated with
rounds. time view of what we were spending legacy systems and processes
as a company. that create high levels of manual
I believe the world is becoming work, slow monthly closes and
aware of what spend management As I learned more, I came to realize ineffective cost controls. The rise in
software is, and that’s seen a major that the status quo for accounts remote workforces triggered by the
shift in how companies’ payments payable (AP) in small and mid- pandemic further magnified those
routines have shaped up in the last market companies was broken. Using frustrations. Companies have grown
year. the concepts that are central to our accustomed to a remote working
product design approach at Airbase, approach, and the efficiencies
The growth in the sector is no we have taken a holistic view of the created by a consolidated spend
surprise to me. The problem spend entire process, and have developed management platform have offered
management solves is something a deep understanding of our users’ a competitive advantage to globally
I witnessed myself, and it’s what needs to solve the problem. distributed teams.
inspired me to create Airbase to
address the need for one platform to Spend management frees up time This year has shown that my pre-
manage all company spend. from manual tasks and provides existing concerns surrounding the
the tools for finance and accounting broken systems within companies
I started the company as a response professionals to contribute insights, and how they manage their spend
to something I saw too much of analysis and strategic thinking, are valid. Now, the rest of the world is
while running my first business: making them more valuable to their rapidly starting to take notice — and
well-educated people sacrificing companies. this is just the beginning.
vast amounts of their time doing
low-value work. My talented finance We’re seeing an upward trajectory Spend management is a crucial
team got bogged down in the chaos of companies adopting a spend innovation whose time has come.
© 2021 PYMNTS.com All Rights Reserved 10 © 2021 PYMNTS.com All Rights Reserved 11
Amazon Web Services (AWS)
CONTACTLESS
PAYMENTS
CONTINUE
TO DRIVE
NEW WAVES
OF INNOVATION
C
OVID-19 caused a shift in the way banks and payments providers
engage with customers as the number of cash transactions and
in-person visits to branches diminished. As a result, many financial
institutions (FIs) accelerated their digital transformation journey
to provide streamlined, end-to-end omnichannel experiences that include
MARK contactless payments — one-touch or cashierless options — delivered in real
SMITH time. I expect that this customer-centric drive toward contactless will continue
to inform new waves of innovation in payments and personal finance post-
Head of Payments
for Financial Services pandemic.
© 2021 PYMNTS.com All Rights Reserved 12 © 2021 PYMNTS.com All Rights Reserved 13
Mark Smith
Contactless payments include a wide biometrics, artificial intelligence in its mobile banking app, made
range of applications, from tap-to- (AI) and machine learning (ML) to by placing a mobile phone near a
pay debit and credit cards to mobile prevent fraud on transactions and payment terminal. However, the
wallets installed on a customer’s ensure customer trust. For example, solution needed to comply with all
smartphone to payment solutions last year, Venmo, a rapidly growing international and country-specific
that send texts to a customer to peer-to-peer (P2P) payments app standards for its products — and
complete the purchase without with over 60 million+ active users, mobile contactless payments are
needing a mobile wallet. A recent rapidly evolved to quickly respond subject to particularly strict rules.
global Mastercard survey indicates to market demand for a contactless BBVA knew that developing a new,
that 74% of customers (consumers) solution among both businesses internationally compliant solution
said they will continue to use and consumers. Venmo used AWS could be expensive and complex
contactless payments in the future. services to build and roll out new since it operates in 35 countries.
For consumers, flexible, convenient, contactless products in as little as Using AWS, BBVA was able to build
touchless transactions are no longer six weeks. and implement a PCI DSS-compliant
a perk — they are a necessity. solution and reduced costs by 80%
“We were able to develop and with on-demand scaling.
Financial institutions are increasingly release a solution that enabled
using AWS to harness vast amounts Venmo customers to present and As demand rises for contactless
of previously siloed data to develop share a way to receive contactless payments – driven by exogenous
a better understanding of customer payments and to pay at QR code- factors like COVID-19 or interest in
preferences, provide a holistic accepting merchants, and went from new form factors like wearables –
customer view to enhance service, literally zero lines of codes to beta payment companies and banks that
and offer new and relevant products in six weeks,” said Nick Ciubotariu, build applications and platforms
and services, such as contactless Venmo CTO, at his AWS Reinvent in the cloud, like Venmo and BBVA,
payments. These firms understand 2020 session. will have an advantage. They will be
that decisions must be made quickly able to identify changes in customer
and accurately, using historical Another customer, BBVA, the global preferences and quickly and securely
and real-time data combined with financial services group, wanted to build, test and launch new and
cutting-edge tools like behavioral enable contactless payments via innovative ways to pay.
near-field communication (NFC)
© 2021 PYMNTS.com All Rights Reserved 14 © 2021 PYMNTS.com All Rights Reserved 15
Amount
TRANSFORMING
BANKS INTO
BNPL
PACESETTERS
T
he physical constraints and financial insecurity brought on by the
global pandemic last year no doubt set the stage for today’s rapidly
increasing adoption of buy now, pay later (BNPL). While not a new
concept, BNPL options became more attractive to cash-conscious
consumers seeking alternatives to unfavorable short-term credit offerings. With
ADAM increased transparency, the ability to even out cash flow and budget over a clear
HUGHES period of time, BNPL fits the bill. Literally.
CEO
© 2021 PYMNTS.com All Rights Reserved 16 © 2021 PYMNTS.com All Rights Reserved 17
Adam Hughes
Fast-forward to today: Having been why Amount is helping our bank their own game with more value,
the only unsecured lending asset partners do just that. convenience and security, which
class to experience high-double- banks are inherently positioned
digit growth during the pandemic, Right now, Amount is one of the to do. Banks’ lower cost of capital
BNPL is now a booming marketplace, few FinTech companies in the U.S. translates to better rates and
one that is expected to capture working directly with large FIs to greater savings for merchants and
$995 billion of consumer spend by empower them to compete and win consumers. Heavily regulated and
2026 – four times its 2021 projected in BNPL. Hampered by inefficient compliant by nature, banks are better
volume. and inflexible infrastructure, banks equipped to meet looming BNPL
are struggling to provide merchant regulations.
But most financial institutions aren’t partners with timely, best-in-class
banking on that BNPL revenue. Well, BNPL options that drive greater By empowering our bank customers
not yet. conversion, average order size and with a modular and flexible BNPL
repeat purchases. solutions platform, they can embed
According to McKinsey’s Consumer white-labeled BNPL products within
Lending Pools data, banks stand Yet when considering existing a merchant’s checkout journey,
to lose up to $10 billion in annual BNPL providers, the options aren’t creating seamless, friction-free
revenues to the ever-expanding that great for merchants. Typically, payment experiences that turn
roster of merchant-centric FinTechs, FinTechs charge merchants high fees customers into high-value brand
which are capitalizing on FIs’ as a percentage of the purchase loyalists. It’s a win for the customer.
inadequate response to increased amount or high flat fees per It’s a win for the merchant. And it’s a
merchant demand for timely, flexible transaction. Plus, most of the big- win for the bank.
customer payment options at the name BNPL players aren’t white-
point of sale. labeled, which is pivotal to driving While FinTechs may appear to be
long-term brand loyalty. winning at BNPL, it’s still early innings
So, as I see it, there are billions of – and most banks have yet to even
reasons that banks need to get into We realize that the only way get in the game. With Amount, that’s
the BNPL space – which is exactly banks stand to win against the all about to change.
BNPL providers is to beat them at
© 2021 PYMNTS.com All Rights Reserved 18 © 2021 PYMNTS.com All Rights Reserved 19BillTrust
SUPPLIERS
PUT THE PEDAL
TO THE METAL
TO CONVERT
B2B BUYERS
TO DIGITAL PAYERS
I
n the B2B space where Billtrust’s customers exist, if 2020 was the year
of digital acceleration, accounts receivable (AR) teams are going beyond
merely speeding up in 2021. They are firmly putting the pedal to the metal
to convert their buyers to digital payers.
STEVE In early 2020, companies not already embracing a digital payments strategy
PINADO found themselves exposed, scrambling to maintain cash flow once their AR
teams were sent home and mail delivery became more of a marathon than a
President
sprint. If there was any silver lining in the events of the last 18 months, it’s that a
normal routine for B2B AR teams now involves conducting targeted campaigns
© 2021 PYMNTS.com All Rights Reserved 20 © 2021 PYMNTS.com All Rights Reserved 21Steve Pinado
to convince their buyers to pay our technology and tackle the It can take a variety of methods to
electronically. In fact, this is the top tremendous challenge of delivering convert buyers to digital payers.
area that AR teams want to address a “complete payment” – capturing Whether through strategically
in the next 12-36 months, according full remittance in addition to the targeted outreach or participation
to a recent Billtrust-sponsored study. payment itself. in a payments network like our
Business Payments Network,
In a post-COVID world, many While changing buyer behavior is accelerated digital efforts ultimately
companies have learned the hard difficult, there are proven methods protect companies’ bottom lines
way that steering buyers away from to achieve success, beginning with while helping to drive a post-
legacy payment methods like checks suppliers offering the digital channels pandemic economic rebound.
is necessary for survival. Although their buyers prefer, then identifying Businesses can never again take
we are well over a year past the which customers are most likely to cash flow for granted – and I am
original employee exodus, remote convert and have the largest impact. proud to help lead a company like
work is still occurring, with the delta Billtrust, which has been a catalyst
variant slowing what many thought We are happy to report that we’re for long-overdue change.
would be a faster return to the office. seeing progress. While a 2019 AFP
Postal delivery speed has also not study found that paper checks made
improved. Converting buyers to up 42% of B2B payments, there
digital payers and accelerating cash are good signs that B2B check use
flow has significant implications on is slowing, with our recent study
a company’s financial well-being, reporting 19% and recent PYMNTS
and Billtrust is proud to lead the data showing 25%.
way in helping companies leverage
© 2021 PYMNTS.com All Rights Reserved 22 © 2021 PYMNTS.com All Rights Reserved 23Blackhawk Network
HYBRID
PAYMENTS:
THE KEY TO
UNLOCKING
THE CONNECTED
ECONOMY
I
n a time of increasing change for businesses and people, the current
global climate has accelerated the digitization of payments at a much
quicker pace than previously envisioned. For Blackhawk Network, broader
adoption of mobile payments has been critical to reshaping the commerce
experience for both retailers and consumers.
TALBOTT
ROCHE This digital payment acceleration has become critical to creating a customer
experience that is convenient and contactless. And retailers that are leaning into
President and CEO
this trend will be rewarded. Blackhawk Network surveyed shoppers and found
© 2021 PYMNTS.com All Rights Reserved 24 © 2021 PYMNTS.com All Rights Reserved 25Talbott Roche
that most will spend more money incentives to enhance value for The brands that are finding success
with retailers that offer more digital consumers, in a way that does not in recovery and growth are also
payment methods. overtask retailers’ existing operations. those that actively seek solutions
The biggest winners in the next to new challenges by creating fresh,
Along with shopping more frequently phase of the payments race will be seamless experiences to engage
(69%) and spending more (54%) at those providing enhanced choice in a customers across the channels they
retailers where they can use digital seamless experience to consumers, find most valuable. The key will be
payments, most shoppers surveyed while making it effortless for retailers. for retailers to invest in their digital
(85%) also reported that digital platforms.
wallets have made shopping easier. Over the last year, we have all
Furthermore, bar code payments adopted a more digital lifestyle,
have allowed an increasing number and the reality of future payments
of retailers to sell or retail digital is hybrid. We have evolved our
goods, expanding their proposition expectations in work, in life and
in-store. in payments to expect hybrid
interactions and transactions. In fact,
But getting consumers to use their 63% of respondents to our research
mobile wallets is just the first step are more likely to shop at a retailer
– and in a post-pandemic world, if it accepts the digital payments
our role is to continue to innovate. they use. We must better connect
We must drive additional value into physical and digital payments to
an integrated payment experience, cater to customers’ preferences for
including coupons, rebates and both.
© 2021 PYMNTS.com All Rights Reserved 26 © 2021 PYMNTS.com All Rights Reserved 27CareCredit
PATIENTS ARE
EMPOWERED
CONSUMERS,
AND THEY EXPECT
PERSONALIZED
PAYMENT OPTIONS
T
he pandemic has profoundly impacted the healthcare industry,
spurring innovation and driving transformation in countless areas.
This includes many financial aspects of healthcare, from how
providers share cost information and request and receive payment,
to how patients pay for health and wellness purchases and manage their overall
ALBERTO healthcare spending.
CASELLAS Focusing on payments specifically, the changes we’ve seen represent an
EVP and CEO at Synchrony’s
health and wellness platform acceleration and amplification of trends that were already underway before
the pandemic began. These trends are often summarized by the label of
© 2021 PYMNTS.com All Rights Reserved 28 © 2021 PYMNTS.com All Rights Reserved 29Alberto Casellas CareCredit
“healthcare consumerism,” which seen a notable increase in providers of high-deductible health plans, the For example, we’ve enabled
reflects the reality that today’s leveraging contextual commerce, need for flexible payment solutions is healthcare providers to deliver
patients are behaving more like which allows patients to engage greater than ever. personalized customer experiences
traditional consumers, bringing the with providers and complete within a mobile application, allowing
same preferences, expectations and transactions from anywhere at any In fact, we partnered with PYMNTS patients to engage when and how
behaviors to healthcare that they time. To make this happen, more to conduct a research study this they prefer, from the security and
have for other kinds of purchases. and more providers are assessing summer that found patients spent convenience of their own devices.
current platforms and processes an average of $1,148 on out-of-pocket Because we already had the
Specifically, we see patients and employing new patient-facing medical expenses in the past 12 technology and infrastructure in
demanding a more retail-like technology and solutions that reduce months. Not surprisingly, 45% of
1
place, we were able to adapt fairly
healthcare payment experience in friction and improve the overall consumers surveyed said they would nimbly — and help our clients in
a few key ways. First, they expect a patient experience. be interested in using financing to healthcare and other industries to
safe, seamless shopping process pay for healthcare costs over time. 2
do so — when the pandemic arrived,
from end to end, including the Finally, in addition to delivering more and so many experiences had to
intuitive integration of technology effective, seamless experiences As these aspects of healthcare become virtual, digital or contactless
to enable contactless commerce. across more channels, patients are consumerism have gained traction, nearly overnight. Now that patients
This can include things like using looking for options to help them Synchrony has helped many and providers alike have enjoyed
QR codes to access online payment effectively manage out-of-pocket healthcare providers navigate this the benefits of these new payment
portals or credit applications, healthcare payments. This has transition and offer new and better routines, we believe they are likely to
paying balances via digital or mobile been a focus of CareCredit, part of experiences for their patients. endure long after the pandemic is a
transactions, and exchanging cost Synchrony’s health and wellness Even before the pandemic, we distant memory.
and invoice information via direct-to- platform, for more than 30 years. were investing significantly in our
device communication. CareCredit was a pioneer in offering digital capabilities and prioritizing
dedicated financing for health and technology innovation to develop
Secondly, they increasingly want wellness expenses not covered by new solutions for our clients and
highly personalized experiences insurance – and today, with rising their customers.
that fit their specific needs. We’ve healthcare costs and the prevalence
1
Consumers’ Healthcare Financial Experiences and Patient Loyalty, PYMNTS.com and CareCredit, July 2021
2
Ibid.
© 2021 PYMNTS.com All Rights Reserved 30 © 2021 PYMNTS.com All Rights Reserved 31Corcentric
WHY
FOCUSING
ON THE
SUPPLIER
EXPERIENCE
PAYS OFF
T
here’s no denying that the pandemic has caused a major shift in
payments strategies in B2B and B2C transactions. From increasing
the need for liquidity and cash availability, to supply chain disruption
and supplier solvency challenges, and practical matters like remote
working, the priority for companies to fully digitize has been fast-tracked.
MATT
CLARK
However, automation is not as simple as deciding to move paper check
payments to electronic methods like ACH. With what are often already
President and
overtaxed internal resources, conducting such a transition may be difficult when
Chief Operating Officer
companies do not possess the manpower or data capture security measures
© 2021 PYMNTS.com All Rights Reserved 32 © 2021 PYMNTS.com All Rights Reserved 33Matt Clark
needed to inspire and facilitate and offer flexibility in the methods service and manage sensitive
adoption by wary suppliers. Adding to supported. Ideally, the most effective information housed in a highly secure
the challenge is that some payments program is designed to provide a environment, and where they can get
programs are too heavily oriented holistic and programmatic approach vital payment status information.
toward a commoditized approach, that identifies the best approach for
emphasizing virtual cards over all all involved, and enables it easily and Lastly, the “cherry on top” of a
else. Suppliers end up pushing back securely. successful digitization program is to
on electronic payments and feeling provide a live contact center that is
that they are at the mercy of their The trend we see is that our clients supported by your payments partner
buyers. are no longer comfortable with a but branded to your company and its
“one-size-fits-all” approach, instead needs. This should be made available
This environment is a form of favoring a supplier-friendly process to address any of a supplier’s
banking by way of payment method, that enables the buyer to support concerns.
even in the design of payment terms. and protect their supplier by enabling
Buyers are looking for longer terms payment methods that meet both These central points for interaction
to conserve their working capital businesses’ needs regarding payment and support increase supplier
and improve the return on their type and timing. satisfaction with your program and
expenses. For suppliers, who are provide answers to critical questions,
already stretched thin themselves, In concert with this supplier- such as “what is the status of my
offering extended terms drives the supporting approach, another key payment and when can I expect
need to increase pricing and seek element that ensures adoption to get paid?” If you answer these
other cost-oriented approaches to and success is a “supplier center fundamental questions in an easy
create an offset from that delayed of excellence,” which provides and supplier-friendly way, increased
capital. That’s why, when it comes to suppliers with the visibility and participation in your electronic
digital transformation, it’s important control they desire. We recommend payment processing program will
to employ a payments partner that the deployment of a centralized follow.
can act as an extension of your team portal where a supplier can self-
© 2021 PYMNTS.com All Rights Reserved 34 © 2021 PYMNTS.com All Rights Reserved 35Cybersource
MERCHANTS
FACE OFF
AGAINST
EVOLVING
FRAUD
TACTICS
A
s businesses expand eCommerce capabilities, more consumers are
starting purchases in digital channels — and completing them there
if they can. Unfortunately, higher volumes of digital transactions can
also bring more fraud attempts to merchants of all sizes.
ANDRE Fraudsters are becoming increasingly sophisticated with testing merchants’
MACHICAO systems to determine which ones are likely vulnerable or under-protected.
Tactics like friendly fraud, card testing, phishing and identity theft are quickly
SVP, Global becoming the leading means of attack in the midst of an accelerating shift
Head of
toward digital. COVID spurred accelerated growth in digital commerce, and
Product and
Solutions
© 2021 PYMNTS.com All Rights Reserved 36 © 2021 PYMNTS.com All Rights Reserved 37Andre Machicao
what followed was an increase in can easily become overwhelmed external datasets, help manage fraud
fraud attempts and fraud rates by by the volume of activity. With that accurately and protect revenue – at a
revenue for around three in four threat looming, businesses have lower cost to the business.
merchants globally, with merchants turned to advanced machine learning
in Asia Pacific and enterprise and models to automate risk detection The world is going digital. Whether it
mid-market merchants especially and increase risk scoring accuracy, is contactless payments in-person or
impacted. all while evaluating larger numbers eCommerce in general, consumers
of transactions in real time. In an are seeking out new ways to
When it comes to the tools used eCommerce setting, with countless make everyday purchases. And as
to fight these new fraud trends, transactions happening at any given consumers change their behaviors,
merchants are rethinking their fraud time, minimizing the human element so too have fraudsters, opting to shift
management tactics, opting to rely goes a long way toward improving their tactics online.
more heavily on a handful of widely speed, efficiency and accuracy in the
used solutions as opposed to nice fraud management process. Tackling fraud is an always-on
products with specific capabilities. effort and can prove challenging for
In fact, Cybersource’s Annual Fraud With the massive amounts of data businesses that need to balance
Benchmark Report found that the occurring with eCommerce, global customer experience with security
average number of tools merchants scale in your data set will help a and efficiency in transactions. As
have in place has dropped by roughly machine learning model learn that the world continues to embrace
half, from 10 in 2019 to five this past much faster and have the ability to the shift to digital commerce, tools
year. train itself on the latest technologies like machine learning, coupled with
and consumer shopping preferences customizable business rules, will
With the rapid growth in digital (i.e., mobile or BOPIS). Machine allow merchants to both fight fraud
transactions, traditional manual learning models are better and generate a better customer
review practices in fraud prevention positioned to maximize internal and experience in the process.
© 2021 PYMNTS.com All Rights Reserved 38 © 2021 PYMNTS.com All Rights Reserved 39Digital River
THE REVOLUTION
IS HERE FOR
B2B BUYERS
W
hether B2B or B2C, our clients are looking for flexibility to meet
shoppers’ and buyers’ demands. Increasingly, that includes an
expanding suite of buy now, pay later (BNPL) options. We’re
seeing the buying power rise for a digital-first generation of
shoppers, who might not have access to credit cards due to inadequate credit
ERIC history or are looking for a way to stretch their budgets, without incurring interest
CHRISTENSEN payments on credit cards. Even countries where shoppers typically prefer cash
options are seeing a rise in BNPL purchasing.
Chief Payments Officer
© 2021 PYMNTS.com All Rights Reserved 40 © 2021 PYMNTS.com All Rights Reserved 41Eric Christensen
This is not just a B2C phenomenon. The pandemic pushed people B2B and B2C brands looking to
In a digital-first world, B2B who were on the fence about a drive customer loyalty and repeat
companies must also address the digital-first experience into the business are rethinking their payment
revolutionary changes in customer eCommerce world. That led to a lot options – and there’s no denying
expectations brought on by both a of “aha” moments, as buyers of all that BNPL is a juggernaut that is
new generation of buyers and the generations realized that digital-first increasing conversions worldwide as
permanent shifts from COVID-19 B2B experiences can emulate the consumers push for solutions that
impacts. B2B buyers who require B2C transactions they have come meet their needs. We will continue to
a variety of payment options, to know and love. B2B buyers are see innovation as open banking takes
including net terms, now expect increasingly looking for more self- hold, giving more FinTech companies
their purchases to be transacted service options and greater control the ability to interact directly with
with the ease and convenience of an over financing. customers.
Uber transaction, and to be made
digitally. With options like our offering This means that companies looking Digital took a giant leap forward
with TreviPay, which provides a to evolve their digital strategy find during the pandemic. We don’t think
seamless eCommerce solution with themselves facing a revolution shoppers will turn back the clock,
net terms and invoicing at checkout, instead – one that includes and their desire for convenience –
B2B buyers can enjoy a frictionless payments. The payoff for brands both in how they acquire their goods
consumer-like transaction – and will be greater insights into their and pay for them – will continue to
merchants can protect their customers, and a more data-driven drive eCommerce forward.
cashflow while scaling their B2B approach that will drive a better
programs across the world. customer experience and more
conversions.
© 2021 PYMNTS.com All Rights Reserved 42 © 2021 PYMNTS.com All Rights Reserved 43Early Warning
FASTER
PAYMENTS
ARE REDEFINING
CONSUMER
EXPECTATIONS
W
hen I think about what defines payments today, the word that
comes to mind is “fast.” And they’re getting even faster.
Recently, I sent money to a family member who was a few
states away. It only took a few taps in my banking app, and
LOU ANNE she received the funds in an instant, directly into her bank account. It wasn’t
ALEXANDER too long ago that a similar payment type would have taken about a week, from
writing and mailing a check, to depositing it, to waiting for it to clear. This sense
Chief Product Officer
of acceleration is something that many customers now consider part of their
standard payments routine that wasn’t the case a year or two ago.
© 2021 PYMNTS.com All Rights Reserved 44 © 2021 PYMNTS.com All Rights Reserved 45Lou Anne Alexander
Over the past year, more than $400 Regardless of their initial reason for
billion flowed through the Zelle trying Zelle, once people experience
Network® on transactions just like the speed and convenience it offers,
mine. Some of these payments were chances are they won’t go back to
sent by users who had leveraged the the old way of doing things. What’s
service for a while. In other cases, more, they start to expect the same
it was the user’s first time sending level of speed and convenience
or receiving a peer-to-peer (P2P) across all the payments they make
payment. They needed a fast, safe and receive throughout their lives.
and easy – and socially distanced Banks and credit unions must
– way to pay back neighbors for recognize this evolution in customer
groceries, split expenses or send expectations and consider how
In the age money to someone to help with
the hardships of the pandemic. Or
they are equipped to meet their
customers’ and members’ needs,
of instant maybe they needed to pay a small
business or receive an insurance
both today and in the years to come.
In the age of instant gratification and
gratification and reimbursement. 24/7 everything, faster payments are
24/7 everything,
becoming table stakes, and no one
It’s important to note that this wants to be left in the dust.
faster payments
increased usage stretches across
age groups and demographics. In a
are becoming 2020 consumer survey conducted by
Zelle, nearly 50% of seniors (age 55+)
table stakes, said they were using P2P payments
and no one
more frequently since the start of
COVID-19.
wants to be left
in the dust.
© 2021 PYMNTS.com All Rights Reserved 46 © 2021 PYMNTS.com All Rights Reserved 47EVO Payments
THE PUSH
FOR A MORE
DIGITAL PAYMENT
EXPERIENCE
T
oday, EVO’s merchants are interfacing with customers (both
consumers and other businesses) that operate more digitally than
ever before. The world is experiencing a rapid digital transformation,
expedited by the pandemic. These electronically savvy end
customers have come to expect their bill-paying process to be digital. They want
BRENDAN the ability to make payments from anywhere, at any time. Consumers select
TANSILL vendors in part based on ease of use. Electronic payments mean more payment
options, more security and more control over the bill-paying process.
President, The Americas
© 2021 PYMNTS.com All Rights Reserved 48 © 2021 PYMNTS.com All Rights Reserved 49Brendan Tansill
Merchants are responding by not In addition, EVO offers a self-service
only adopting electronic payments, payment portal where customers
but also digitizing the rest of can log on to view invoices, process
the bill paying process, such as payments and even sign up for
delivering invoices electronically and recurring payments. Customers have
reconciling with the general ledger, the ability to save electronic payment
etc. Self-service payment options methods in a secure digital wallet,
give customers more control over expediting future payments and
their accounts while reducing the enhancing security by minimizing the
accounts receivable workload for the number of times that a raw credit
merchant. card is provided.
Self-service
At EVO, our efforts to please both the
merchant and their end customers
payment options has resulted in a greater focus on
integrated technology and more
give customers payment options. EVO recently
more control over
released its proprietary ACH service,
which allows merchants to now offer
their accounts
both credit card and ACH within a
single solution using EVO’s payment
while reducing gateway, PayFabric.
the accounts
receivable
workload for
the merchant.
© 2021 PYMNTS.com All Rights Reserved 50 © 2021 PYMNTS.com All Rights Reserved 51FIS
CONSUMERS
NOW DEMAND
OPTIONS
IN THEIR PAYMENTS
EXPERIENCE
O
ver the past year, consumers have driven the rise of several
innovative payment technologies. These technologies have
reshaped the consumer experience, as well as their preferences
and expectations when it comes to the payments process. Recall
what the process of paying for something was a year ago: A customer went into
DAVE a store to make a purchase, saw what they were looking for and then took it to
FURA the checkout area. In most cases, they would either pay with cash or use a debit
or credit card.
SVP, Head of Card Solutions
© 2021 PYMNTS.com All Rights Reserved 52 © 2021 PYMNTS.com All Rights Reserved 53Dave Fura
Now, due to shifting consumer growth is expected to continue and mutual benefit they deliver at
preferences because of the across generations, as the pandemic various phases of the value chain
pandemic, the checkout process has shifted things like menus and have made them one of the fastest-
looks completely different. Those instructions to be viewed on mobile growing segments in payments.
same customers now expect options device – compelling enough for Post-purchase installment loans
and instant gratification when it even the most digitally resistant give cardholders the flexibility to
comes to how and when they pay consumers to start using these make larger purchases, and can
for their items. Whether it is in- technologies. Drastic consumer increase card use and preference
person or online, consumers are shifts like these mean that financial by offering cardholders more choice
demanding that the entire process institutions and retailers must make and control. Organizations can use
is fast, frictionless and safe as well. sure that paying with a mobile wallet post-purchase installment loans to
This has led to the rapid adoption of is a viable payment option at their add functionality to differentiate their
technologies such as mobile wallets, businesses. offerings and increase consumer
contactless payments and buy now, loyalty to their brand.
pay later (BNPL) solutions. The buy now, pay later market is
expected to grow 181% by 2024, The payments process is completely
Respondents to FIS’ 2021 Pace according to the 2021 Global different than what it used to be,
Pulse survey revealed that COVID-19 Payments Report by Worldpay from and it will continue to adapt as new
restrictions have changed many FIS. In fact, according to the same solutions are developed. Technology
consumer behaviors. The percentage report, BNPL services rose nearly developers such as FIS are taking on
of respondents using mobile wallets 78% in 2020 — the biggest leap of all a support role for their customers,
or contactless payments at checkout payment types – and is projected to pairing them with the right payments
more than doubled from April account for 4% of global eCommerce technology that delivers on any
2020 to February 2021, while the spend by 2024. The concept of post- expectation the end consumer may
percentage using mobile payments purchase installment programs isn’t have for their payments experience.
increased by nearly two-thirds. That new, but the ease of use, flexibility
© 2021 PYMNTS.com All Rights Reserved 54 © 2021 PYMNTS.com All Rights Reserved 55FISPAN
WHAT
POST-PANDEMIC
SUCCESS
WILL LOOK LIKE
FOR BANKS
AND BUSINESSES
T
here is no question that innovation in financial services has
dramatically accelerated over the past year or so. Customers are
getting more and more comfortable doing their personal banking
online, and business banking customers are also turning to digital
platforms as an alternative to in-person branch visits. Banks are struggling to
CLAYTON keep up with this rapid shift in the types of online service offerings their clients
WEIR are demanding. Because of this move to digital, paper-based and manual
processes just don’t work anymore for most finance teams. Activities such as
CEO and Co-Founder
physically walking into a bank branch to submit business data or sending and
receiving paper checks from the headquarters have had to be eliminated.
© 2021 PYMNTS.com All Rights Reserved 56 © 2021 PYMNTS.com All Rights Reserved 57Clayton Weir
Because of this, banks are looking is to partner with agile, innovative deliver a product or service that truly
to deploy innovations that will have FinTech services. Connecting with resonates with their customers and
an immediate impact on the client their clients as much as possible and meets them where they are with
experience. This is where we’ve seen understanding their needs will be the current challenges they face in a
a huge opportunity with embedded essential in driving the agenda for the rapidly growing digital market.
banking. By embedding the banking banks’ new capabilities. Leveraging
experience inside the platforms tech and automation will manage We are looking forward to watching
that business customers use to and rise to customer expectations banks, payment providers and
run their businesses (such as ERPs while still allowing for more face FinTech companies launch new
or accounting software), banks are time during this transition period services and solutions that can
able to easily provide their business to explore and better understand help small businesses across the
clients with a more automated and customers’ needs and wants. country emerge from the pandemic.
streamlined treasury management I think the greatest opportunity for
process. The banks that are ahead Banks should continue to be open economic recovery and success
of the curve and partnering with to new ways of thinking and working post-pandemic lies in banks being
FinTechs are beginning to better with new partners. In partnering, better able to serve their small
understand how their customers use serving or investing in innovation by business clients.
their products in context, allowing way of technology upstarts, financial
them to innovate smarter and faster. institutions (FIs) are able to position
themselves for future growth and
The best way for B2B banks to adaptation through real-time, easy
manage the impact of rapidly access to products, services, data
evolving customer expectations and channels. This enables them to
© 2021 PYMNTS.com All Rights Reserved 58 © 2021 PYMNTS.com All Rights Reserved 59Forter
RETAILERS
NEED TO COMBAT
FRAUD AND
FALSE DECLINES
TO WIN LIFETIME
CUSTOMERS
O
ver the course of the past year, the volume of online shoppers
grew at twice the rate as before the pandemic. New shoppers have
created opportunities for businesses, but have also introduced
surface area for fraud and abuse.
LIRON Since new shoppers lack history and context, it’s not surprising that their
DAMRI transactions are five to seven times more likely to be declined than other
customers. To make matters worse, 40% of shoppers who are declined on their
President and Co-Founder
first visit won’t return, and one-third will end up seeking out the competition.
© 2021 PYMNTS.com All Rights Reserved 60 © 2021 PYMNTS.com All Rights Reserved 61Liron Damri
The vast majority of those are false has been supporting this effort
declines, and so businesses have with our Persona Graph. Across our
lost revenue and customers. network of customers, we have built
a dataset of more than one billion
These same new shoppers have online personas. Now, when any of
proven (based on our dataset) to be our customers interacts with a new
more likely to reuse passwords and shopper, they are pattern-matched
less likely to properly secure their to the entire dataset. If the shopper
data. As a result, between 2019 and has transacted elsewhere, there is
2020, we saw account takeovers context on their trustworthiness. If
(when a fraudster attempts to gain they have not been seen across the
40%
access to an account with stolen network, personas like theirs can
credentials) decline by 5% while be used to offer a precise decision
bad actors harvested data. In 2021, on whether to accept or reject a
they put that data into action, with transaction.
account takeovers growing by 55%
of shoppers year over year. In this way, we are helping
who are declined
businesses start relationships with
Therefore, an emerging business new shoppers and significantly
on their first visit
routine includes the effort to make growing the customer’s lifetime
better decisions about eCommerce value.
won’t return, interactions — especially as it
pertains to new shoppers. Forter
and one-third will
end up seeking
out the
competition.
© 2021 PYMNTS.com All Rights Reserved 62 © 2021 PYMNTS.com All Rights Reserved 63FortisPay
CHOICE AND
CONVENIENCE:
DEFINING CONSUMER
PAYMENTS TODAY
F
rom swiping a magnetic strip in person to instant orders and payment
plans, many of us did not anticipate the level of rapid development
that would expand throughout the payments industry over the last
two years.
RON The buying power and payments preferences once in the hands of businesses
DICHTER shifted to consumers the moment our lives went virtual. Consumer behaviors,
physical restrictions, changes in purchasing needs and threats of economic
Chief Revenue Officer
collapse influenced change and set new expectations for consumers today.
© 2021 PYMNTS.com All Rights Reserved 64 © 2021 PYMNTS.com All Rights Reserved 65Ron Dichter
A year ago, small businesses were Competitive local eCommerce, FortisPay has focused on curating
struggling to compete with big third-party connectivity and BNPL tailored commerce experiences
brands emerging in eCommerce. strategies are innovations that that further enable choice and
Today, the end customer has just as became reality for the payments convenience in payment routines.
much as of an opportunity to choose industry this year – but together,
local goods and services as they do they’re merely products of the Through enhanced core integration
to order from Amazon. choice and convenience that define capabilities, payment facilitation,
consumers’ normal payments third-party connectivity, award-
Over the last 12-24 months, third- routine. winning APIs and strategic
party connectivity has changed the acquisitions – such as with EpicPay
way customers tackle errands, pay As technology disruptors bring new or Swype at Work – FortisPay
for services and even order food. capabilities and integrations to helps businesses simplify payment
The convenience of accomplishing market, more streamlined functions systems and meet their unique
several tasks in one central location will inevitably shape our payments commerce needs as the industry
wasn’t as openly available as it is experience. Open Table, Shopify and grows and transitions.
today. Now, vendor partnerships Afterpay are all growing examples
and point-of-sale connectivity allow of how choice and convenience Competitive local eCommerce,
consumers to book reservations, pay impact our payments needs and third-party connectivity and BNPL
for gift cards and pre-pay for meals – expectations. Consumers want platforms show us how the industry
all from the same app. personalization and options. Gone has transformed since the dawn
are the days that customers face of the pandemic, but payments
And prior to 2020, layaway was an limitations at checkout. capabilities will continue to innovate
almost-forgotten concept left in the and evolve. We believe choice and
90s. As we move closer to 2022, Our payments ecosystem is rapidly convenience for the consumer
that same concept has been revived changing – not only because the is here to stay, even if today’s
and rebranded through buy now, pay pandemic uprooted the industry, perception of the “normal payments
later (BNPL) platforms, which enable but because consumers have taken routine” differs from tomorrow.
customers to make purchases with control of their payments needs and
installment plans. expectations. Over the last two years,
© 2021 PYMNTS.com All Rights Reserved 66 © 2021 PYMNTS.com All Rights Reserved 67i2c
AMID A HOST OF
CHANGING ROUTINES,
AGILITY AND
RELIABILITY
BECOME MORE
CRITICAL THAN EVER
O
ver the last year, we’ve witnessed a host of changing routines
across the end-user spectrum, influenced at first by necessity
and later, it would seem, by a growing comfort with and openness
toward new payment experiences. From getting food delivered
to forgoing bank branches and cash, consumers and businesses have learned
JIM dozens of new routines and continued to create new ones amid an abundance
McCARTHY of options.
President
Sure, the shift to digital payments was well underway before storefronts closed
and safety precautions accelerated adoption – but as consumers had to make
© 2021 PYMNTS.com All Rights Reserved 68 © 2021 PYMNTS.com All Rights Reserved 69Jim McCarthy i2c
more of their purchases online or via shifting state of payments, where Maybe the ability to dip, swipe or tap enabled convenience in their day-
contactless payment methods, many assumptions are quickly turned on a bank-issued smart card without to-day transactions, it will become
new routines were introduced. their heads and agility becomes having to unlock a phone or lower increasingly important that those
more critical by the day. a mask suits someone just fine in experiences rest on reliable and
Did some of our usual resistance to one situation, while having the same secure infrastructures that can
changing routines wane in 2021? If At our organization, we’re supporting card virtually in an app for making a handle not only volume growth, but a
so, is it temporary? the transition the way we always quick balance inquiry or bill payment multitude of moments.
have – by listening to issuers, is equally convenient just moments
The Card Is Still Important whether they’re banks, FinTechs or later. What Will Normal Look Like in
According to Visa’s recently published other enablers, and not assuming 2022?
survey, nearly 50% of consumers we know what they need, but rather These changing patterns and It’s difficult to say whether we
would not shop at a store that did co-creating with them in whatever expectations underscore the are witnessing a new level of
not offer contactless payments way their vision and the environment importance of the supporting openness on the part of end-users,
at the beginning of the pandemic, require. ecosystems and platforms lasting shifts in routines, or just an
and many methods of contactless that interconnect them and are acceleration of trends that were
payments are up year over year from As further proof of the shifting tasked with delivering varied user already in the making. Regardless,
this initial surge, such as the 30% landscape and need for agility, a experiences reliably and consistently. the stage has been set for an
increase in tap-to-pay usage among recent PYMNTS report noted that In other words, it’s probably a good unpredictable world where rapid
U.S. consumers. while Apple still holds a large share time to talk about table stakes. innovation and resilience are vital.
of the mobile wallet market, in-store For example, does the inability to Maybe next year, you’ll be paying
While the shift may have started over mobile wallet use had declined by reach customer service in a pinch for gas with your car, sending a
health concerns, Oracle finds that 26.2%. I’m not sure very many people or a declined authorization not only remittance overseas to Mom via
96% of all current users intend to saw that coming. aggravate the customer, but possibly cryptocurrency or trying BNPL for the
continue using contactless payments push them away from one routine first time. If we’ve learned one thing
post-pandemic. These takeaways Enabling an Ecosystem and leave them open to another? over the last year, it’s that almost
and others not only illustrate the Why is this? Could it be that as the anything is possible.
lasting importance of the card, but context changed, the practicality of As businesses and consumers
also what feels like a wide-open or the card came into clearer view? come to expect more digitally
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