NOTTINGHAM, U.K. (11/26/12)--The growth of new payment channels is the biggest challenge facing the payment industry, according to an annual survey conducted by global payments software provider Compass Plus. Also, fraud, security and compliance were seen as key issues.
Seventy percent of respondents, including financial institutions, mobile operators, payment processors and other industry professionals, were surveyed at an international payment, security and identification event.
The survey indicated 30% of respondents cite the variety of payment channels available as the primary challenge facing the payments industry today--an increase of 8% when compared with the survey results for 2011.
Other key issues included:
- The growth of near field communication (NFC) and contactless technology (21%);
- The need for simple user authentication (18%), and
- The rise of non-traditional payment providers (17%).
In contrast, those surveyed broadly agreed on the speed of mobile banking adoption. Most (59%) said mobile will account for a 10% to 30% share of banking within two to three years.
Fraud, security and compliance were forecast as the top three industry issues for 2013. Internet banking hacking remains the biggest fraud threat at 27% versus 29% last year. Customer-not-present fraud is the second at 26%. Card skimming is perceived as the fastest growing threat with an increase of 7% year-over-year. Customer confusion ranked as the fourth biggest issue for 2013.
NFC represents the biggest opportunity for payment providers in 2013, according to 62% of respondents. Last year, recipients were polarized on the speed of NFC uptake. This year saw a growing consensus among respondents (67%), expecting NFC to reach mass adoption in one to three years."
The industry still remains in a period of turbulence with technology-led disruption at its core," said Maria Nottingham, Compass Plus chief marketing officer. "Marrying innovation and speed with security and compliance is paramount for financial institutions to create an environment where they can launch new payment services quickly and cost effectively while ensuring they meet industry standards."
For the full results of the study, use the link.