There are many familiar changes are afoot, such as significant improvements in the speed and convenience of payments as well as greater point-of-sale acceptance of both card and digital payments. These developments, however, highlight important considerations about how the payments business model is evolving.
Payment Service Providers (PSPs) used to make money by directly charging fees to their customers. But will that be enough for the future? Or should PSPs actually offer these basic payment services for free while recouping their costs in other ways, such as through gathering consumer data and using it to offer other related services?
The report also examines how Apple Pay’s market entry will affect the business of the more traditional market participants, such as the banks and China UnionPay (CUP), and explore why other device manufacturers such as Huawei and Xiaomi are also joining the payments race. Finally, the report will discuss the latest developments in the general regulatory environment, specifically with respect to consolidation among license holders and new, more stringent payments laws.