Edgar, Dunn & Company (EDC), the global strategy consultancy, released their 10th Advanced Payments Report 2016 (APR 2016), sponsored by Wirecard, the global financial services and technology company. It provides perspectives and insights from payment industry executives, analysts, and stakeholders obtained from interviews, discussions, and EDC’s annual online advanced payments survey of over 500 industry professionals.
The APR 2016 covers topics that are of current relevance to the global payments industry. It discusses mobile wallets rolled out by device manufacturers that simplify the set-up process and are easy to use. 73% of survey respondents agreed that in the future, multiple wallets with differing technologies will co-exist but there will be market consolidation in the next 2-3 years.
Personal (or person-to-person) payments continue to be popular with investors and are finding new applications through personal messaging apps especially in China. Who will win the personal payments battle? Survey responses were evenly divided but mobile wallet providers took top place voted by 24% of respondents. The report also discusses real-time payments that are being leveraged by start-ups and are set to provide the underlying infrastructure for digital commerce and payments in the future.
The latter part of the report focuses on innovations such as the Internet of Things (IoT), virtual currencies such, and Blockchain – the underlying technology for Bitcoin – and identifies the practical applications and impact on the payments landscape that these may have in years to come. Interestingly, 64% of respondents perceived the primary motivation of Bitcoin users to be anonymity and only 34% said that it will be used for general online payments. However, 70% believe that more financial institutions will invest in Blockchain related technologies to trade and transfer financial assets.