Innovative payments initiatives on par with regulation - survey

However, innovation is seen as far more important in the long-term, due to competition, market opportunities and an ever-increasing need for more agility for faster time to market solutions (29% of all surveyed consider innovation a priority, compared to 17% for regulation).

Both regulation and innovation are now key considerations for companies striving to optimise customer journeys that are cost efficient, safe, flexible and secure, making them a real investment priority. The importance of innovation is being driven in particular by new entrants to the industry that are major sources of disruption in establishing new ways to pay and to disintermediate or differentiate in a fluid market.

Moreover, mobile has now become mainstream and innovative disruptive technologies such as block-chain will potentially become a very attractive alternative to traditional payment methods, transforming payment processing and acting as significant drivers for change in 2015, according to the annual report ‘The Changing Face of Payments: A Review of Current Payments Infrastructures and Implications for the Future’ issued by Cognizant, VocaLink and the Financial Services Club.

According to 90% of responses, mobile devices will represent a mainstream option for person-to-person or person-to-business payments within by the end of 2020. Digital wallet features continue to be developed, a trend encapsulated by the launch of Apple Pay, which has made such offerings more accessible. The executives surveyed predict the continued influence of such brands, with 39% of responses suggesting that Apple and Google will dominate mobile payments up to 2020.

Cryptocurrency and block-chain technologies are now seen as real drivers for change and are gaining mainstream recognition, particularly in back-office infrastructures. The emergence of digital-only lenders such as Atom Bank in the UK emphasises the conversion of previously marginal initiatives into the everyday. However, regulation and the use of cryptocurrency markets and Bitcoin will potentially be a major issue for payments regulators and participants in 2015, not least given how fast these new entrants have evolved from emerging technologies to real contenders in the payments industry.

Over 300 professionals took part in the survey, mainly from banks (33%), technology providers (19%) and consultancies (19%). Non-bank financial institutions and payments processors also made a material contribution to the survey (13%). These participants represent all levels of operations and management, with 15% at C-level and the majority (33%) being in senior management. The global survey featured respondents from the UK, Europe, US, India, Australia and Canada.