Results of the year. Analysis of what was in the market of payment systems and forecast for the future

    It so happened that at the beginning of the new year it is customary to take stock of last year and make plans for the coming year. We at , a project on payment systems with the monitoring of exchangers, decided not to depart from this wonderful tradition and tried to find an answer to the question of what awaits the sphere of payments in the future, 2015.

    But first, let’s dwell on the results of the year that has passed. So, the expert Karen Webster formulated the main world events of the payment market of the outgoing year.

    TOP 10 events that affected the electronic payment system in 2014

    1. A large-scale cyber attack on the Target trading network

    At the end of 2013, the large Target trading network, owned by the American company of the same name, was attacked by hackers, as a result of which fraudsters gained access to information about 40 million bank cards. After this incident, customer confidence in the network fell sharply, and with it immediately, sales fell by 46%. How did this event affect payments in 2014, you ask? The most direct.

    Almost immediately after the attack, Target began large-scale work to prevent similar attacks in the future. The cyberattack allowed us to prioritize the company - henceforth, safety is paramount.

    Of course, after Target, other retailers also thought about the security of their customers' personal data. Gradually, throughout 2014, a new standard for the security of payment transactions was formed, more and more companies put cybersecurity at the first stage of their priorities. And now, by the end of the year, we can say that the cyber attack on the Target trading network (although this is not the only case of identity theft, the attacks were both before and after, but it was the attack on Target that became the most resonant) showed the scale of possible consequences and prompted all major companies to review their policies and focus on protecting their customers' data. In the future, work to improve protective measures will continue, including in the area of ​​online trading.

    2. The introduction of contactless cards in the United States

    Before the attack on Target, in America they were skeptical of EMV, the international standard for working with chip cards in general and contactless payment cards in particular. Most users preferred magnetic stripe cards, considering them completely safe. The calm of the cardholders was largely explained by statistics, because before the attack on Target the level of fraud with magnetic cards was very low. In addition, the introduction of a new contactless payment technology required large cash injections.

    Having weighed all the pros and cons, the Americans considered unjustified spending on such “trifles”. And in vain. After all, a contactless card, thanks to the special encryption of its owner’s personal data, is able to provide a level of security an order of magnitude higher than its magnetic predecessor.

    The cyber attack on Target made adjustments and forced the US government to reconsider its attitude towards new technology. Currently, both in America and in other countries of the world, active work is underway to introduce a contactless payment system.

    Nevertheless, a complete re-equipment of payment systems will take at least 5 years, and by the end of 2015 only 25% of the total number of payment terminals will accept cards of a new type.

    3. The introduction of tokenization The

    year 2014, as we have already noted, has become a year of safe trading. One of the ways to ensure the security of payments was the introduction of tokenization, the principle of which, however, is no longer new.

    The service is based on the principles of EMV-standard bank payments. At the moment when the customer makes a purchase in the online store using his plastic card or mobile device, the card’s personal account number is converted to a token (device’s personal account number). The latter can be stored directly in the online store or on a mobile device without the risk of data leakage, as it does not contain any relevant information about the card holder and the transaction made. In turn, tokens allow you to make instant payments and greatly simplify the process of performing settlement operations in the field of electronic and mobile commerce.

    In the past year, tokenization was introduced one after another by 2 of the largest players in their system - Visa and American Express. It is expected that soon other systems will join them.

    4. Using smartphones for direct communication with the buyer

    In 2013, Apple introduced the world its new iBeacons mobile application - a cheap and effective way to establish a two-way dialogue with the consumer.

    In 2014, similar mobile applications also became available to owners of Android-devices and over time gained great popularity. Their main task is to notify device owners about the promotions and discounts of various retail stores. Distribution of applications is mainly carried out by large shopping centers interested in increasing sales.

    The principle of operation of such programs is simple. As soon as a potential buyer appears in a shopping center, the retailer learns about this with the help of special beacons installed throughout the center. They are designed to receive a signal from a mobile device and send response messages about promotions and discounts that apply to a particular product.

    How to choose the right moment to send this or that information? Yes, very simple. Special beacons not only establish the presence of the client, but also serves to move him around the supermarket. The buyer receives a message with the terms of the currently valid special offer, as soon as he approaches the promotional product. Communication between the beacons and the mobile device of the visitor of the shopping center occurs via Wi-Fi or Bluetooth.

    5. Apple's entry into the payment market

    In 2014, Apple introduced the world its own payment system - Apple Rau. Apple Rau payment support tools are built into the new version of the iPhone 6 smartphone, equipped with a fingerprint reader and an NFC chip for contactless payment of goods.

    Visa, Mastercard and American Express have already expressed their willingness to work with Apple Rau. Banks serving credit cards of users of the new system are not against cooperation. Interest in Apple Rau is expected to only grow over time.

    You can use the payment service using credit card information stored in your iTunes account. To change a card or add a new credit card, just take a photo of it and send the resulting image to the system. In the future, when conducting transactions, the card number is not used or stored anywhere, it is also not used for authorization in the system, the system is logged in using a unique one-time code. Those. Users can be sure of the security of their accounts.

    6. Separation of eBay and PayPal

    In 2014, the largest online trading platform announced the separation of PayPal, an electronic money operator, which was (and still is) a division of eBay until the beginning of 2015. This is despite the fact that a year ago, the head of eBay John Donahue claimed that "payments and commerce belong to each other", as well as that "eBay and PayPal are better together."

    Following the branch, PayPal plans to present its shares on the stock exchange. This will allow the service to go free swimming and conduct independent activities to select partners and the model by which these partnerships will develop, as well as allow independent competition with other systems. In turn, eBay will be able to connect other electronic systems to its platform, which also gives the retailer a large space for developing partnerships that were previously not available to him.

    Thus, we can say that this is a mutually beneficial “separation” by mutual agreement. The separation, however, does not mean at all that from now on the 2 giants of e-commerce will not cooperate at all, the format of their relationship will change.

    7. Chinese online store Alibaba introduced shares on the New York Stock Exchange

    In the interval between the release of Apple Pay and the separation of PayPal from eBay, the major Chinese online store Alibaba set its records on the New York Stock Exchange, becoming the first "newcomer" to the exchange who received such a high rating.

    Recall that on September 18, after the initial offering of their shares, the retailer raised no less than 25 billion dollars. Alibaba currently has a market capitalization of 259 billion, which is ahead of not only eBay ($ 60 billion) and Amazon ($ 140 billion), but Walmart, a popular chain of department stores ($ 239 billion).

    It's no secret that Alibaba is the largest player in the Chinese e-commerce market. Each day of the past year brought the retailer almost 10 billion dollars, and today sales in China continue to grow.

    The Chinese Internet giant is becoming crowded in its own market, and the company's immediate plans include access to the world stage. The placement of shares on the largest overseas exchange is the first step towards the development of new horizons. Among other actions taken by the retailer to attract new customers is the translation of the site into Portuguese. This will cover the Brazilian market, confident in Alibaba.

    According to experts, the trading platform has every chance to spread its influence around the world, because Alibaba is not just an online store, but a whole complex that includes Alipay payment system, an advanced logistics and delivery system, insurance, messaging, social media, as well as a group of investors.

    8. Opening the first Amazon offline store

    Another e-commerce market player claiming a dominant role is Amazon. The company decided to open its first real store. Amazon is confident that this will allow them to strengthen their already strong positions in the retail industry, to establish physical, human ties with their customers. This communication format can be the key to working with individual customers and help attract more users (recall that today, 220 million people are Amazon customers).

    An offline store will help to improve the quality of customer service of the company, accelerate the delivery of orders and establish a quick exchange and return of goods. The real store will become a full-fledged collection point where visitors can pick up orders placed on the Amazon website on their own. The Wall Street Journal says that the store will be located in Manhattan, opposite the famous skyscraper Empire State Building.

    9. Bitcoin backtracking

    Bloomberg Financial News Agency called Bitcoin the worst currency of 2014.

    Throughout 2013, Bitcoin was steadily adding to the price, users of virtual currency were jubilant, because by the end of the year the cryptocurrency rate reached its maximum ($ 1,130). But the joy was premature. Already at the beginning of 2014, the electronic currency, having passed the peak of its value, rushed down and continued to drop uncontrollably until it lost more than 70% of its value, stopping briefly at $ 770, and then continuing to fall to 326 cu

    10 Consolidation of large companies

    Looking back and analyzing the e-commerce market, you can see that in 2014 the general interest in online payments increased significantly compared to 2013. Last but not least this is due to the consolidation of several large companies.

    At the beginning of 2014, the Visa and Chase agreement entered into force, giving the latter the right to independently create direct links between card issuers and trading floors. The technology company Vantiv has completed the purchase of the Mercury payment service. Company QIWI acquired payment service "Money». PayPal, an international payment system, and CashStar, a digital gift card company, have concluded a major deal to issue and further sell PayPal gift certificates.

    Thus, there was a certain redistribution of forces on the market, as a result of which the largest and most powerful players took decisive steps to strengthen their positions by concluding profitable agreements with their partners or absorbing competitors.

    So, we examined 10 key events that occurred in the 2014th year and had their impact on the development of electronic payment systems.

    But what awaits us in the future, 2015th year? The same expert made her forecasts and shared her assumptions.

    What awaits the scope of payments in 2015

    In 2001, many analysts predicted that the volume of mobile payments in 2008 would amount to $ 37 billion. The assumption was made 6 years before the first iPhone entered the market.

    In 2009, the same analysts said that the volume of mobile payments in 2012 would amount to 10 billion (note the decrease in the forecast value by 27 billion). The forecast was made 2 years after the release of the first iPhone and the launch of the App Store, when less than 5 percent of the world's population used smartphones.

    In 2012, analysts predicted an increase in the volume of mobile payments to $ 2 billion (although, based on their previous forecasts, it would be more logical to say about a reduction in payments from 10 to 2 billion).

    As you can see, accurate forecasts are not easy and unreliable; no one can guarantee with 100% certainty the growth of the volume of mobile payments or its reduction next year. However, some events can be foreseen. And here are some of them.

    1. Traders - a phased increase in income

    In the coming years, traders will no doubt focus on finding reliable partners, the interaction with which will allow them to increase the income of their trading floors. However, getting the desired profit will not work right away.

    As you know, every year an increasing number of customers of various trading platforms move to the online space and an increasing number of customers of traditional stores use mobile devices to make purchases. The seller can not help but respond to this. Traders have to follow the technical fashion and keep abreast of all technical innovations, applying them in the right place and at the right time.

    Of course, the introduction of all technological innovations requires a significant investment and a clear strategy. The seller must understand why he does this and what he will ultimately receive.

    According to studies, in 2015, 93% of traders will invest in the development of mobile applications, 74% claim that they will invest in applications that increase the consumer’s trading route in some way - special offers and recommendations. More than half say that the future lies with mobile Wi-Fi beacons that establish effective interaction with the consumer. A third of the retailers surveyed expect to increase their turnover by revising pricing policies.

    2. Payment networks - the road to the unknown

    Every day, payment networks process a huge number of transactions involving plastic cards. And every day their volume is growing due to the development of payment mechanisms and, not least, cooperation with such a major player in the field of mobile commerce as Apple Pay. Partnership with Apple, among other things, also contributes to the development and early implementation of innovations in the electronic payment market. Of course, all this favorably affects the development of electronic commerce. But this is the situation today, and what can expect us in the field of mobile payments tomorrow and whether other systems want to cooperate with Apple Pay in the future, no one can say with full confidence.

    So, today plastic card issuers pay Apple 0.15% for each transaction of their depositor, banks and payment systems invest their own funds in advertising Apple payments among their customers. Millions of dollars have already been spent on these goals. And, most likely, the situation will only worsen.

    Moreover, an increasing number of e-wallets that do not use plastic cards enter the market, which cannot but worry payment systems. For example, the Chinese Alipay system has more than 300 million mobile wallets that are not tied to payment cards.

    Based on this, it can be assumed that already in 2015, payment systems will think about creating their own advanced electronic payment system and will begin to look for alternative sources of income.

    3. Banks - the need to comply

    Recently, more and more banks come to the conclusion that the opening / development of their online services is a necessity due to the widespread adoption of digital technologies and the gradual change in user preferences.

    The emergence of various financial companies offering P2P lending will also force banks to upgrade their system, redesign business models, and develop more and more new products that could interest a potential customer. The introduction of new technologies will naturally require large cash injections from banks. But in the near future they will no longer have to choose. All these measures are necessary for banks in order to withstand a difficult competition not only with traditional, but also with virtual financial companies.

    4. Consumers - the need to adapt

    Today in the world there are many services for making mobile payments, but this does not mean at all that all consumers like this method of payment or that everyone uses it in practice. On the contrary, most modern buyers use more traditional methods that are familiar and familiar, only some users search for new, progressive methods of payment for goods on their own. The rest follow the habit and do not want to adapt to new means of payment. Often, these consumers simply do not have enough motivation or they are not sufficiently aware of the new payment instrument. So, according to the American analytical company InfoScout, much more people know about the existence of Bitcoin than about the existence of contactless payments, and this despite the fact

    In order to gain popularity, any new technology, any new payment method should be really useful, it should make life easier for its consumer, offer something new and unique, and at the same time simple and not requiring much time to study. The user needs to provide more opportunities for using mobile devices and present as many reasons as possible why he should opt for this particular method.

    At one time, Alipay and PayPal found the right approach to their potential customers, providing users with a payment platform for safe and reliable online trading, Amazon, which made it possible to make purchases in just one click, the mobile payment service M-Pesa, which allowed to establish a fast and secure exchange cash in Africa. Prior to this, for example, Kenyans, if necessary, had to transfer money to each other through intercity bus drivers, at the risk of being deceived.

    5. Acquirers and manufacturers of POS-terminals - a sharp change in strategy

    The appearance on the market of all new payment instruments forces manufacturers of POS-terminals to quickly respond to changes and improve their devices. Often they have to “get ahead of time” and begin work on modernization even before a particular payment method becomes popular, based only on expert forecasts.

    In the future, only those acquirers and manufacturers of POS-terminals will remain on the market who can most accurately predict the popularity of a particular payment instrument and quickly respond to any change in consumer needs, whether it is contactless payments, purchases by reading a barcode or other tools .

    6. Electronic wallets - popularization of their services

    Non-traditional payment systems have only one opportunity to gain attention and attract new users - the rapid and persistent popularization of their electronic wallets, otherwise they may lose the battle for the consumer.

    It has been established that not many people use several virtual wallets at once for online purchases. Just like when going to a traditional store, we take only 1 wallet, people choose only 1 service for shopping in online stores and do not change it until something starts to suit them. A recent survey showed that 62% of buyers have only 1 e-wallet and are not going to start a second one.

    Every new system should understand this - if it is ahead of the competition, the client will be lost forever.

    Developers of electronic wallets should be prepared for the fact that in order to succeed, they will have to spend considerable money on promoting and developing their product. At the same time, payment systems should become more universal, work with as many trading platforms as possible, so that the consumer does not have the need to adapt to each retailer.

    7. Mobile operators - perspectives

    Depending on the country in which the mobile operator operates, various perspectives may open before it. Somewhere, the mobile services market is already saturated and even oversaturated, and somewhere there are great opportunities for its development.

    Speaking about the prospects for the development of mobile commerce, first of all, of course, we are talking about developing countries where banks and electronic wallets are unpopular and inaccessible. Mobile payments for residents of these countries can become an alternative to all other electronic payments, whether it is payment for goods or services, transfer of funds - all this can be done using a mobile phone.

    The prospect of the development of mobile commerce, of course, is not only in developing countries. In developed countries, where electronic payments have existed for a long time and have become part of everyday life, mobile operators should improve their services, develop new approaches to receiving mobile payments, for example, work on creating new SIM cards that support NFC payments.

    8. Innovators - Commerce

    The ubiquity of smartphones and other devices that support Internet access leads to a rethinking of trading opportunities. Many experts agree that by 2020, the world will have about 50 billion devices with Internet access, i.e. an average of 7 devices per person.

    The introduction of payment instruments in each of the devices is not only a possible prospect, but also the most probable one. This means that in the future we will have great prospects in the field of electronic commerce.

    Now we know what awaits us in the future.

    Finally, we would like to summarize the results of our own work.

    In 2014, we worked a lot, improving our project, and now we monitor exchange pointsbecame even more convenient and faster. New currencies and exchange directions have been added, the list of exchange points has been expanded. The structure of the site has been updated, many useful features have been added.

    We shared the most relevant news with you, talked about advanced technologies and upcoming events, and always received numerous feedback from you.

    At the beginning of 2015, accept our sincere congratulations on the New Year. Let your wallets be full, thoughts clear, and fortune does not pass by!

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