Payment services is a dynamic part of the financial services industry. Payment service providers like banks or third-party payment companies enable merchants to accept and process online payments. Payments are usually done through debit/credit card, online transfers and others. Online payments are faster than manual payments since the entire payment process takes seconds to complete with immediate confirmation regarding transactions. However, payment providers charge transaction fees or setup or monthly fees.
The payment industry is highly profitable, attributable to the fairly stable and predictable transaction volumes and low capital intensity. Rising acceptance of digital payments, entry of non-traditional players, increase of immediate payments and technological advancements like contactless technologies are driving the payments market.
Mobile points of sale, contactless technologies such as wearables, mobile wallets and person-to-person (P2P) apps have increased payment means for consumers. Wrist-wearable devices are slated to be the next big thing that enables customers to make payments with the swipe/flick of their wrist. P2P allows customers to transfer funds from their bank accounts to another person’s account using mobile phones or internet.
Plastic money refers to the use of debit/credit cards for making payments. Technological innovations have enabled greater flexibility, convenience and security around the usage of such cards. Apart from debit/credit cards, charge cards and prepaid cards are also used for making payments. Prepaid cards are not linked to accounts; instead they hold a specific amount that can be utilized to make payments. Whereas charge cards are similar to credit cards. However, the balance on the card is payable in full when the statement arrives.
Mobile wallets or mobile money hold digital information about debit/credit cards, store coupons, loyalty programs and enable customers to store cash and make e-payments through mobile applications. Such services are provided by banks, merchants and telecom providers. Rise in mobile payment applications and customers’ inclination to use mobile devices for e-commerce will bolster growth in the mobile wallet market. However, the need to level up digital security around such transactions will only grow in importance.
ASDReport.com provides a plethora of reports on payment services industry. Numerous reports are available on card outsourcing, ATM market and bitcoin among others.