How to win the payments race – a PFI playbook

by CO-OP InsightVault

Being your members’ primary financial institution (PFI) is about serving them where they live their financial lives. As mobile and digital innovations continue to transform the consumer landscape, what members expect from payments is changing. We’ve identified four trends that you need to know to win the payments race:

1. Payments Are Increasingly Passive

That is because they are rapidly going digital. According to Capgemini and BNP Paribas, consumers will make more than 726 billion digital transactions by 2020. eMarketer projects that $156 billion in mobile P2P payments will be made in 2018 alone – with $244 billion estimated for 2021.

At the same time, U.S. in-store mobile payments are advancing at 40 percent annually, on track to hit $128 billion in 2021.

And while 98 percent of consumers proactively choose a payment method during a live POS transaction, according to the Deloitte Center for Financial Services, 74 percent of web transactions and 87 percent of mobile purchases are made passively, using a default card stored within the merchant site. To win the payments race, that default card must be yours.

 

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