Embed Size (px)
Citation preview
From Card-on-File to On-Demand Payments: New Payment Model and Strategies for Payment Providers
April 2016
2016 Mercator Advisory Group
New research from Mercator Advisory Group titled From Card-on-File to On-Demand Payments: New Payment Model and Strategies for Payment Providers identifies how card-on-file solutions have been given a new lease on life and are now the primary consumer method for making payments via mobile devices. The report describes several examples of third-party solutions in this model that enable consumers to better control and manage their payments. Examples are also given that show how card issuers have responded to on-demand payments in a tactical way but have so far failed to grasp the strategic implications of this model.
As consumers move to on-demand payments, card issuers and merchants must respond to remain relevant
2016 Mercator Advisory Group
“Sometimes changes in technology and consumer adoption occur so slowly that both the nature of the change and the magnitude of the change are misjudged,” said Tim Sloane, VP, Payments Innovation, Mercator Advisory Group, and author of report. “On-demand payments may appear to be a simple extension to traditional card-on-file solutions, but nothing could be further from the truth. On-demand payments are a significant shift in the way that consumers prefer to shop and buy and the way that merchants push the payment process into the background. With the issuer’s brand almost invisible at the point of purchase, issuers need to identify new strategies to remain relevant to consumers.”
Tim Sloane
VP, Payments InnovationMercator Advisory Group
2016 Mercator Advisory Group
• Identification of industries once thought to be impervious to disruption that are now being radically reshaped due to smartphones and on-demand services
• Evidence that the on-demand payments model is the primary driver of the explosive growth in digital payments volume, further displacing cash and check transactions
• Explanation of the three trends that drive the growth for on-demand payments
• Examples of third-party services that have captured cardholders by providing services that enable the consumer to better manage on-demand payments
• Specific steps that issuers should take to move from the tactical efforts in place today to a strategic response required to remain relevant with cardholders in the long term
Highlights of the research report:
Figure 5: Issuers Partner On-Demand Platforms
Source: Company websites 2016 Mercator Advisory Group
One of the 7 exhibits included in this research report:
About the research report:
2016 Mercator Advisory Group
This research report contains 21 pages and 7 exhibits.
Companies mentioned in this report include: Airbnb, Amazon, American Express, Apple, Betterment, Braintree, Capital One, Facebook, Final, Google, IBM, Lyft, MasterCard, Mint, Netflix, PayPal, Personal Capital, Snapchat, Spotify, Square, Stripe, Trim, Twitter, Uber, Visa, and Wealthfront.
Members of Mercator Advisory Group’s Emerging Technologies Advisory Service have access to these reports as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.
For more information and media inquiries, please call Mercator Advisory Group's main line: (781) 419-1700; send email to [email protected]. For free industry news, opinions, research, company information and more, visit us at www.PaymentsJournal.com. Follow us on Twitter @ http://twitter.com/MercatorAdvisor.
About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs.
Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.
2016 Mercator Advisory Group
