According to Mckinsey Global Payments Report 2018, there has been a steady growth in the global payments revenue, with transaction-based revenue accounting for 40 percent of the total payments sector, which is expected to show a steady growth over the next few years. This is driven by the shifting digital landscape – the growing popularity of alternative payments solutions and digital commerce.
With the electronification, mobile commerce including in-app payments and mobile browser payments, and increasing developments in different online payment methods, companies in the payments sector must be ahead of the growth curve with relevant technology deployments. So that they can offer latest services whether it is digital wallets, tap-and-pay, in-store app use and pay services, mobile payments at POS etc.
This means that the payment companies and service providers need to be ready for next level of digital transformation. Talking about what digital transformation means for the enterprise in the payment sector, TM Praveen, CEO, Opus Consulting Solution says, “Digital Transformation primarily means digitization of key business processes. All large companies are modernizing their infrastructure, processes and business models to ensure they are scalable, adaptable and flexible to drive the organization’s adopting strategies and keep up with the challenges that rapid industry disruption will pose. Our focus areas are cloud solutions, agile architecture leveraging micro services, APIs for easy integration with applications, machine learning and AI solutions for next-gen process automation and intelligent decision making.” Digital transformation in this case will include improved user experience, agility, extensibility, system performance and Security concerns.
AI and Machine Learning are the two key things that is defining digital transformation for the organisations in the payment sector – payment processers, acquirers, issuers, ISOs and Fintech start-ups. Experts see Artificial intelligence and machine learning as a natural fit in the financial services sector. Autonomous NEXT, a research advisory firm, projects that global financial organizations can reduce one fifth of their cost by using these technologies.
Why it makes sense for the Payments companies? According to Opus consulting, the payments arena specifically stands to gain when it comes to more easily navigating complex and evolving regulations as well as real-time payments. Artificial intelligence and machine learning will play a significant role in the near- and long-term in the areas of fast payments, risk management, and KYC systems. Adding to this, Praveen explains, “Merchant organizations are at the forefront of innovation with the rise of mobile, online and social technologies. Growing number of channels are also transforming consumer access to information and generating demand for innovative services to support omni channel commerce, big data analytics, superior loyalty programs and targeted marketing.”
But it is not always easy for the CIOs to implement major technology changes. The stumbling block that CIOs experience today is the apprehension of making drastic changes to existing infrastructure and processes. “Adopting the organization to industry disruption and expecting them to keep pace with the rapid explosion of technology is another hurdle we keep hearing of,” he adds. He suggests that CIOs should liaise with their business functions such as Marketing, Strategy and Product Development teams while considering new initiatives because tying technological initiatives with organizational goals is the most critical success factor. “Another suggestion from us to build the right team that is a perfect mix of technical and collaborative skills. Driving these initiatives need a very different mind-set and diverse skill sets. Considering user experience and digital into the strategy is a factor we emphasize enough on,” Praveen explains.
This is where Opus Consulting steps in to provide Consulting, Implementation and Strategic services in this space. Defining the solutions that Opus creates for its customers, Praveen explains, “We offer several next-gen solutions for customers looking to solve their Payments problems. For e.g., we help them build modern payment platforms, payment device solutions, M & E-Commerce solutions, modern merchant management solutions – many of them integrated with machine learning-led insights for better decision making.”
The organisation is serving small, medium and large organizations looking to solve payments problems are our customers. It has solutions for payment processors, acquirers, issuers, ISOs and Fintech start-ups looking to disrupt some of the erstwhile landscape. “Organizations at any stage of their digital transformation journey choose to collaborate with us to study their landscape, understand their priorities and bring about technological changes. We collaborate with them to build solutions to address payments challenges, adopt to newer technologies, integrate with other critical applications in the payments ecosystem and enhance customer experience and engagement.”