New Report Finds Domestic Payments Organisations Increase Innovation During Covid-19

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The Domestic Payments Schemes Jury has released its 2021 report titled: “To Survive or Thrive? Domestic Payments Innovation in the Pandemic”, revealing that while many domestic payment organisations had to make some adjustments to their innovation programmes due to the pandemic, 36 per cent reported that the pandemic had ultimately led to an increase in their innovation activities.

Undertaken in collaboration with World Bank and European Card Payments Association (ECPA) the Domestic Payments Schemes Jury is made up of 48 C-level executives from 40 countries representing a rich tapestry of national payment schemes and operators. The 2021 report, the sixth in a series spanning eight years, explores the impact of the Covid-19 pandemic on domestic payment organisations; from the rapid surge in usage and their responses to the acceleration in innovation and the evolution of the regulatory landscape.

“In the face of unprecedented digital evolution in the last year the ubiquitous role of the domestic payments organisation has significantly changed. As card schemes, telcos, social media platforms and fintechs vie for market share, domestic payments organisations have to strike a balance between standing on their own two feet commercially while bringing their diverse national payments communities together,” Chairman of the Jury, John Chaplin, commented.

“This year’s Domestic Payments Schemes Jury has concluded that the best strategic response for domestic payments organisations in the wake of the pandemic is a programme of systemic innovation that delivers value-added services beyond their traditional card payments, and at the same time demonstrably supports public policy goals.”

Key findings of the report include:

  • Nearly half (48 per cent) of the Jury reported declines of more than 25 per cent. 89 per cent reported significant or full recovery of transaction volumes, helped in large part by the development and roll-out of digital capabilities.
  • While 52 per cent of respondents had to make some adjustments to their innovation activities due to the pandemic, most reported that their programmes remained largely intact and 36 per cent reported that the pandemic had ultimately led to a further increase in their innovation activities.
  • Supporting mobile and app-based services remains the biggest innovation priority for domestic payment systems (90 per cent) with real-time account to account payments, enhancements to card services – such as QR codes – and digital identity all equally popular among the Jury (70 per cent).
  • Domestic payments organisations were well positioned to facilitate Covid relief programmes in different markets, with the Jury reporting that two-thirds of respondents (70 per cent) were provided emergency support to government efforts to either contain the pandemic and/or manage the adverse effects on the economy.

To read the report in full click here. 

  • Polly is a journalist, content creator and general opinion holder from North Wales. She has written for a number of publications, usually hovering around the topics of fintech, tech, lifestyle and body positivity.

https://thefintechtimes.com/new-report-finds-domestic-payments-organisations-increase-innovation-during-covid-19/