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Payments industry correct answers Dynamics changing as businesses and consumers shift dollars
from cash to digital
Cards dominate in-store retail
Mobile wallets like apple pay seeing rapid uptick in usage
E-commerce will chip away at brick and mortar
Peer to peer supplanting cash in day to day lives of users across generations as they become more appealing and useful than ever
FUTURE OF PAYMENTS correct answers New types of fraud threatening
Trillions in volume/revenue up for grabs
Big banks threatening tech
PAYMENT INDUSTRY TRENDS correct answers In-store payment methods on the rise
89% of retail volume: credit and debit
Surging e-commerce will eat away at in-store payments' share
(relationship between e-commerce and in-store retail payments)
Smartphones coming closer to PCs
New payment tools: voice assistants, wearables, cars
Digitization of payments not just contained to retail.
Surging e-commerce will eat away at in-store payments' share of overall retail
PCs will continue to lead the way
Digitization of payments: also P2P, digital remittances, digital business payments
Emerging alternatives to card payments
Shifting role of key categories of providers as ecosystem digitizes and matures
Payments trend correct answers Boom in e=commerce, banks afraid to miss out in transaction volume
Deciding whether build e=commerce in-house or refer merchants to third-parties**
Currently, PSP getting banking licenses throughout Europe
PSP
Offers ability to pay online
Transaction businesses, getting % each transaction, fixed fee per payment, as well as fee on every merchant that joins their platform
Revenue margins on these transactions getting thinner and thinner
How well are banks able to respond correct answers Banks should be even more afraid of bigtech
moving into payments than just Fintech competition
Google, facebook, uber, amazon getting payment or even banking licenses
Banks don't have updated legacy systems or knowledge internally to compete with these big players
As Ginger, they are not competing with banks but working with them to help them be more competitive Challenger banks like N26, revolut growing rapidly correct answers If traditional banks can update legacy systems/partner with fintechs they have chance to survive
Will take time before banks become obsolete because they still have trust/loyalty from consumers
Incumbents have advantage, but must act
Insight/trends correct answers Companies are specializing in one specific thing and having hyperfocus
Ginger connects specialized partners on back ends so customers have to deal with one party
Large players are consolidating***
A lot of incumbents merging to get footholds in new markets and with new customer groups, taking ownership in larger share of value chain
Big banks acquiring fintechs
***relations with processors
Bank led p2p payment ecosystems will challenge global card schemes, local processors
Haven't seen uber of banking space yet
How do you help an e=commerce merchant sell more to his clients
More trends correct answers Rising use of mobile for money transfers, p2p, p2group, person to SMB and micro-merchants where payee wants to be anonymous,
Tradeoff between frictionlesss user experience and security requirements
Strong authentication reduces fraud, but kills all impulsive purchases
China was able to leap over the credit card world, adopt mobile wallets like AliPay
High=value payments: cross border (transaction banking)
Move towards instant payments
How companies account to account
ACH, automatic clearing house, slow but cheap
Send money internationally: SWIFT
Introduction of real-time payments around the world
24/7 available rather than only business hours
Tony Bach Christensen Nets group correct answers Payments is a volume game
Need volume to stay cost-competitive, and need different services to stay relevant to customers
Customers increasingly engaging with payments in more ways, looking for increased convenience
Businesses starting to think lilke consumers
Consumerizing themselves
Have to be convenient in different way
How banks being able to remain competitive correct answers Banks increasingly see value of partnerships
Steady disintermediation of well-established businesss models and products
Relations with processors
Biggest trends payments correct answers Payments will become invisible enabled by APIs
Payments will start to show up in new places (intelligent cars, for gas/drive throughs) Digital-first generation will hit its prime spending years
Digital-first generation will hit prime spending
2020 Gen Z 40% global consumers
Invoicing for small-and medium-sized businesses will transition to digital
Cross-border eCommerce will continue to grow exponentially
Fraud prevention getting smarter
Regulations will continue to increase to protect consumers, businesses
Invoicing for small-and medium-sized businesses will transition to digital correct answers Account receivables digital trend, B2b
No more paper checks
Cross-border eCommerce will continue to grow exponentially correct answers Global eCommerce on rise, retail sales, will exceed brick and mortar 16 years ⅙
Businesses can tap into international markets by establishing cross-border eCommerce alliances with modern payment providers
Fraud prevention getting smarter correct answers Fraud hot-button topic. Data security
Use of Ai in fraud, fraud data that can deliver insights
Approving good transactions, rejecting fraud
Helps businesses increase sales and revenue by enabling them to accept more good orders and lowering fraud operations costs
Fraud data can help stop fraud and deliver insights
Create identity profiles to stop fraud
Regulations will continue to increase to protect consumers, businesses correct answers Ex. Visa clear when trial ends, charge kicks in
Making more difficult for payment companies because number of regulations is growing steadily
Mobile, messengers, p2p models expanding payment footprint correct answers Wechat, paytm,
Payment firms such as stripe, ayden disrupting companies, payment processors
Banks trying to remain relevant by expanding into point of sale, p2p
Apple, google samsung offering cashless cardless payment solutions point of sale
Blockchain correct answers Can bypass fin institutions, direct payment
Forfce institutions to re-engineer
Making remittances, cross border cheaper
Banks partnering with Ripple and circle
Bank monopoly on custome data relatinoship is gone correct answers Besides deposits, most important is customer data, direct to consumer relatinoship
Merchants can directly access customer account information, making payments faster more efficient
Banks must share APIs: third party service providers can acfcess data
Stripe: can get access to this data, provide usefull analytics on customer spending to merchants who create focused products
Payments industry correct answers Dynamics changing as businesses and consumers shift dollars
from cash to digital
Cards dominate in-store retail
Mobile wallets like apple pay seeing rapid uptick in usage
E-commerce will chip away at brick and mortar
Peer to peer supplanting cash in day to day lives of users across generations as they become more appealing and useful than ever
FUTURE OF PAYMENTS correct answers New types of fraud threatening
Trillions in volume/revenue up for grabs
Big banks threatening tech
PAYMENT INDUSTRY TRENDS correct answers In-store payment methods on the rise
89% of retail volume: credit and debit
Surging e-commerce will eat away at in-store payments' share
(relationship between e-commerce and in-store retail payments)
Smartphones coming closer to PCs
New payment tools: voice assistants, wearables, cars
Digitization of payments not just contained to retail.
Surging e-commerce will eat away at in-store payments' share of overall retail
PCs will continue to lead the way
Digitization of payments: also P2P, digital remittances, digital business payments
Emerging alternatives to card payments
Shifting role of key categories of providers as ecosystem digitizes and matures
Payments trend correct answers Boom in e=commerce, banks afraid to miss out in transaction volume
Deciding whether build e=commerce in-house or refer merchants to third-parties**
Currently, PSP getting banking licenses throughout Europe
PSP
Offers ability to pay online
Transaction businesses, getting % each transaction, fixed fee per payment, as well as fee on every merchant that joins their platform
Revenue margins on these transactions getting thinner and thinner
How well are banks able to respond correct answers Banks should be even more afraid of bigtech
moving into payments than just Fintech competition
Google, facebook, uber, amazon getting payment or even banking licenses
Banks don't have updated legacy systems or knowledge internally to compete with these big players
As Ginger, they are not competing with banks but working with them to help them be more competitive Challenger banks like N26, revolut growing rapidly correct answers If traditional banks can update legacy systems/partner with fintechs they have chance to survive
Will take time before banks become obsolete because they still have trust/loyalty from consumers
Incumbents have advantage, but must act
Insight/trends correct answers Companies are specializing in one specific thing and having hyperfocus
Ginger connects specialized partners on back ends so customers have to deal with one party
Large players are consolidating***
A lot of incumbents merging to get footholds in new markets and with new customer groups, taking ownership in larger share of value chain
Big banks acquiring fintechs
***relations with processors
Bank led p2p payment ecosystems will challenge global card schemes, local processors
Haven't seen uber of banking space yet
How do you help an e=commerce merchant sell more to his clients
More trends correct answers Rising use of mobile for money transfers, p2p, p2group, person to SMB and micro-merchants where payee wants to be anonymous,
Tradeoff between frictionlesss user experience and security requirements
Strong authentication reduces fraud, but kills all impulsive purchases
China was able to leap over the credit card world, adopt mobile wallets like AliPay
High=value payments: cross border (transaction banking)
Move towards instant payments
How companies account to account
ACH, automatic clearing house, slow but cheap
Send money internationally: SWIFT
Introduction of real-time payments around the world
24/7 available rather than only business hours
Tony Bach Christensen Nets group correct answers Payments is a volume game
Need volume to stay cost-competitive, and need different services to stay relevant to customers
Customers increasingly engaging with payments in more ways, looking for increased convenience
Businesses starting to think lilke consumers
Consumerizing themselves
Have to be convenient in different way
How banks being able to remain competitive correct answers Banks increasingly see value of partnerships
Steady disintermediation of well-established businesss models and products
Relations with processors
Biggest trends payments correct answers Payments will become invisible enabled by APIs
Payments will start to show up in new places (intelligent cars, for gas/drive throughs) Digital-first generation will hit its prime spending years
Digital-first generation will hit prime spending
2020 Gen Z 40% global consumers
Invoicing for small-and medium-sized businesses will transition to digital
Cross-border eCommerce will continue to grow exponentially
Fraud prevention getting smarter
Regulations will continue to increase to protect consumers, businesses
Invoicing for small-and medium-sized businesses will transition to digital correct answers Account receivables digital trend, B2b
No more paper checks
Cross-border eCommerce will continue to grow exponentially correct answers Global eCommerce on rise, retail sales, will exceed brick and mortar 16 years ⅙
Businesses can tap into international markets by establishing cross-border eCommerce alliances with modern payment providers
Fraud prevention getting smarter correct answers Fraud hot-button topic. Data security
Use of Ai in fraud, fraud data that can deliver insights
Approving good transactions, rejecting fraud
Helps businesses increase sales and revenue by enabling them to accept more good orders and lowering fraud operations costs
Fraud data can help stop fraud and deliver insights
Create identity profiles to stop fraud
Regulations will continue to increase to protect consumers, businesses correct answers Ex. Visa clear when trial ends, charge kicks in
Making more difficult for payment companies because number of regulations is growing steadily
Mobile, messengers, p2p models expanding payment footprint correct answers Wechat, paytm,
Payment firms such as stripe, ayden disrupting companies, payment processors
Banks trying to remain relevant by expanding into point of sale, p2p
Apple, google samsung offering cashless cardless payment solutions point of sale
Blockchain correct answers Can bypass fin institutions, direct payment
Forfce institutions to re-engineer
Making remittances, cross border cheaper
Banks partnering with Ripple and circle
Bank monopoly on custome data relatinoship is gone correct answers Besides deposits, most important is customer data, direct to consumer relatinoship
Merchants can directly access customer account information, making payments faster more efficient
Banks must share APIs: third party service providers can acfcess data
Stripe: can get access to this data, provide usefull analytics on customer spending to merchants who create focused products
