Description

Payment Processing, an extremely crucial segment of the financial services industry, has witnessed a dynamic shift from paper to electronic payments in recent years. Checks as a payment instrument has been giving way over last few years to card payments and E-money payments. Volume of e-money transactions by non-banks in 2007 showed a remarkable rise of 40 percent from a year ago.

Converging interests of both clients and service providers is accelerating transformation of the payment processing industry. Increasing regulatory norms, innovative payment solutions, and emerging technologies are the major drivers of growth for the payment processing industry.

Looking at the global picture, FSOkx foresees Asia-Pacific and Eastern European nations to witness the highest growth rate for electronic payments. However, United States will continue to dominate the market with over half of the market share at 109 billion non-bank payment transactions in the year 2009.

To help our clients leverage best-of-breed practices, FSOkx conducted a comprehensive research study to understand the latest trends in the payment processing industry.

• Senior executives and finance managers looking at introducing or enhancing the scope of Payment Processing in their firms
• CFOs and finance executives who need streamline payment operations and keep costs under control
• Consultants who need to understand the payment processing industry and the upcoming trends as well as technologies in the industry
• Service vendors / solution providers who want to understand the payment processing industry from the point of view of their clients

Key Findings

• Improved operational efficiency and secure regulatory compliance are the key attractions of outsourcing in payment processing. Clients access latest technologies and experts without large capital expenditure or maintenance issues.
• Security threats and data confidentiality are major concerns in outsourcing payment processes.
• Money laundering and illegitimate financing (criminal and terror-related) have emerged as serious concerns in recent years.
• Study of payment processing industry reveals an intensely competitive market space. Players like Unisys, Metavante and First Data are leading the industry in terms on Breadth of Coverage and Potential to Grow.
• Rising non-cash payments, technological developments, and enterprise-wide payment solutions are the latest defining trends in the industry.
• Innovations in the mobile payment technologies are expected to lead to higher growth in this sector.