The 10th anniversary of the Merchant Payments Ecosystem conference, known as MPE Berlin, tackled all the essential themes: payments trends, ecommerce developments, regulation, fraud fighting techniques and, ultimately, what the future holds for the industry. Attending such an exciting forum helped us start the year well informed and focused. We returned more inspired, with new ideas and practices ready to be implemented and with great enthusiasm to create even more value for our merchants and partners. We have compiled a short overview with the hottest payments trends and takeaways.
The overall impressions? MPE Berlin was lively, captivating and insightful. The buzzwords of this edition were data science, IoT, frictionless payments, PSD2, consumer behavior, and machine learning.
As the industry finds itself in a state of constant change and development, we have reached the stage where payments are no longer a dull aspect of commerce. With the evolving technology, payments have acquired a strategic element, turning as Ron Kalifa, chairman of Worldpay said, “from boring to boardroom”.
As I have mentioned during my presentation, payment providers should focus on creating seamless payments by taking a closer look at authorization flows, reducing fraud and creating a complete payments experience. Additionally, be it local or cross-border ecommerce, it is within the payment providers’ role to ensure that the end consumer experiences seamless payments.
But how exactly can we offer more added value to merchants? One of the answers is data science, a buzzword of MPE Berlin 2017
Having insight into consumer behavior and not making use of it is a missed opportunity. Data science is a crucial component that both retailers and payment providers must integrate into their strategy. It’s a great resource to improve customer experience by recognizing behavior across all points of interaction and personalizing their journey. On the other hand, with the help of data analytics, payment providers can help merchants distinguish between real and fake, fraudulent customers.
As Payvision is a data-driven payments company, our efforts concentrate on using data to create added value to merchants, and to raise awareness for the benefits of this approach. For instance, retailers leveraging the full power of big data could increase their operating margins by as much as sixty percent.
Another powerful payments trend discussed during MPE Berlin 2017 was the Internet of Things, which embraces “anything in everything”, expected to continue as a dominant influence across the industry. The continuous increase of connected devices only results in more data, which allows us to explore the shopping behavior and preference of consumers even more, allowing merchants to better target their customers and meet their demands.
Talking about regulation updates, although PSD2 has generated concerns around commerce and payment providers, we could see positive developments as well. In addition to creating a unified interface for offering payment initiation and account information services, it could also “unleash a new wave of innovation”, according to Thaer Sabri, CEO of the Electronic Money Association. I also discuss this topic in more detail in my latest opinion piece on market regulation.
Frictionless payments were also mentioned as being a MUST in the payments industry in 2017. Payment providers must work harder than ever to come up with ways to make payments secure and invisible to consumers. The combination between blockchain technology and instant payments will have a major impact in the future.
As consumers are offered more and more tailored, convenient shopping experiences, they will become more demanding of all aspects of the shopping journey, including the payment process. That requires payment operators to provide even more seamless solutions to meet increasing consumer demands.
To conclude, payments companies continue to shift into so-called Merchant Services Providers and their role is no longer to provide acquiring solutions or processing transactions. That is more of a commodity nowadays, as discussed and agreed at last year’s conference; the focus should be on adding value for merchants in order to help them differentiate within their industry. Small providers are pushing the big payments companies to start thinking of innovative solutions and reduce complexity. As Ron Kalifa indicated “we’re looking towards helping our merchants increase their sales, reducing their costs and mitigating risks and fraud”, that’s the ultimate trend redefining our share in this exciting ecosystem. This is the main reason why Payvision was awarded during MPE Berlin 2017.
Don’t miss our success story for winning the ‘Best PSP’ award!