Taxonomy of Payments: Part II

by Zilvinas Bareisis, July 14, 2010
Industry Trends
Global, Asia-Pacific, EMEA, Latin America, North America

Abstract

While payment revenues are under attack from various regulatory initiatives, banks have to deal with an increased level of innovation and generally higher expectations from customers, particularly corporate ones. The old way of managing payments (siloed organisation and “spaghetti” technology architecture) is no longer an option for most banks.

In Part II of a report, Taxonomy of Payments, Part II: Everything You Wanted to Know About Payments But Were Afraid to Ask, Celent reviews key trends and developments in the payments industry. Specifically, the report addresses the following areas:

  • Online payments
  • Mobile payments
  • Corporate payments
  • How payments are managed within the banks

“Innovation in payments is real and far-reaching. You only have to look at Europe to see a wide range of different ways to pay online,” says Zilvinas Bareisis, Senior Analyst with Celent’s Banking Group and author of the report. “If you are in the developed world, it might be tempting to dismiss mobile payments, but mobile-based financial services are a real opportunity, particularly in the emerging markets.”

The report summarizes all major trends discussed in both parts of the report, organised by payment instrument/channel and by geography. The Appendix provides a map of key payment instruments.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

5

Payments Online

6

 

Online Banking Vs. Payments Online

6

 

E-Commerce Market

8

 

E-Commerce Payment Methods

11

 

Online Transactions and Payment Service Providers

13

Mobile Payments

18

 

Developed World

20

 

Developing World

23

Corporate Payments

26

Management of Payments Within Banks

31

 

Organisation

32

 

Technology

36

Conclusion

41

Appendix: Map of Payment Instruments

45

Leveraging Celent’s Expertise

47

 

Support for Financial Institutions

47

 

Support for Vendors

47

Related Celent Research

48

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