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IDC FutureScape: Worldwide Payments 2018 Predictions

IDC FutureScape: Worldwide Payments 2018 Predictions

This IDC Financial Insights study presents the top 10 predictions for the worldwide payment market. Each prediction is shaped by a common set of key drivers that provides a planning tool for technology leaders and their line-of-business counterparts to use in their IT strategic planning efforts. The challenges of the industry today continue to be shaped by trying to match fintech innovations while resources are scarce and regulatory burdens persist.According to James Wester, research director, IDC Financial Insights, "Payments have always been challenging when it comes to technology strategy. It is a complex market with thin margins and incredible scale. The predictions offered in this IDC FutureScape for worldwide payments come from a combination of recent research coupled with decades of experience from the authors. The predictions are aimed at helping technology buyers understand the challenges facing the payment market as well as how to adjust their strategies to face those challenges."

Please Note: Extended description available upon request.


IDC FutureScape Figure
Executive Summary
IDC FutureScape Predictions
Summary of External Drivers
Predictions: Impact on Technology Buyers
Prediction 1: In 2018, Financial Institutions Will Allocate $6 Billion to Internal Resources to Handle Transforming Their Payment Systems
Associated Drivers
IT Impact
Guidance
Prediction 2: In 2019, P2P Transactions Worth a Total of $6.0 Trillion Will Be Made Worldwide Using Mobile Devices
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 3: DLT-Based Networks Will Be Launched Within the Next 24 Months in 25% of Global Transaction Banks — in Particular, to Facilitate KYC, Accelerate Supply Chain Finance, and Drive SME Lending — But Blockchain Payment Systems Will Not Be a Priority Area
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 4: In 2018, More than $150 Billion Will Be Spent Through IoT and Connected Devices
Associated Drivers
IT Impact
Guidance
Prediction 5: By 2021, 75% of Enterprise Point-of-Sale Vendors Will Have Begun Significantly Re-Architecting Their Solutions to Meet Rising Expectations for Current Omni-Channel Capabilities and Customer Experience Expectations
Associated Drivers
IT Impact
Guidance
Prediction 6: Despite the Lack of an Equivalent Regulation to PSD2, by 2021, 90% of Non-European Banks Will Have Moved in a Similar Direction to European Banks in Terms of Sharing Data via APIs, But They Will Have Done So for Competitive Reasons Rather Than Regulatory Ones
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 7: Corporate Banks Will Invest 15–20% More in Big Data/Analytics in 2018 than in 2017 — $2.2 Billion in Total — in Their Efforts to Move from a Transactional to a Data-as-a-Service Business Model, Offering Real-Time and Predictive Analytics on Fraud, Compliance, and Scenario Modeling
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 8: By 2019, 70% of Standalone Mobile Payment Players Globally Will No Longer Exist in Their Current Form; Through Natural Evolution, Mergers, and Acquisitions, Mobile Payment Players That Are Showing Promise Today Will Have Transformed into Full-Fledged Financial Services Ecosystems
Associated Drivers
IT Impact
Guidance
Prediction 9: By 2021, All Major Payment Service Providers Will Interact with Digital Identity Marketplaces Used by Consumers and Businesses to Self-Govern Private Data Sharing and Use, Allowing Data to Be Uploaded for Payment Companies to Access via a Subscription Model
Associated Drivers
IT Impact
Guidance
Prediction 10: In 2020, 25% of Card-Issuing Banks Will Use Micro-Location for Enhanced Security Through a Combination of NFC and Beacons to Satisfy Mutlifactor Requirements to Secure Payments, Such as at POS and P2B
Associated Drivers
IT Impact
Business Impact
Guidance
Advice for Technology Buyers
External Drivers: Detail
Pace of Change: Technology Capabilities Enable Sustainable Change at the Speed of Digital Business
Platform Disruption: Unleashing Digital Innovation's Power of Scale
Accelerating DX: Technology-Centric Transformation Altering Business and Society
Innovation Impasse: Legacy Systems Constraining Transformation
New Nature of Risk: Innovation to Defend Against Bad Actors and Comply with Increasing Regulatory Compliance
Human Versus Machine: The Impact of AI and Automation
The Future Workforce: Global Demand for Digital Talent
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