How Customer Lifecycle Intelligence will help power the next generation of payment innovation

It’s not easy keeping pace with the rapid changes happening in the payments space.?Issuers, networks, payment processors and merchants are all investing in next-generation innovation.?What were once considered to be ‘alternative payment methods' are now mainstream with the rapid adoption of technologies including digital wallets, contactless payments and Buy Now Pay Later (BNPL).

The pace of transformation is set to keep on accelerating.?Global cashless payment volumes are set to increase by more than 80% by 2025, to almost 1.9 trillion transactions, and the IDC predicts that by 2030 60% of global consumers will have made transactions using an asset class other than fiat currency.

Leading the way in the payment innovation race

The IDC estimates that 74% of global consumer payments will be handled by non-financial services institutions (FSIs) by 2030. Incumbent FSIs however, are far from being displaced from payments if they can reshape the role that they fulfil in the payments landscape of tomorrow.

A line has been drawn in the sand between those in the payment sector who are investing in modern technology innovations and those who are not, especially as customer expectations around sending and receiving money becoming ever more demanding, and customers increasingly take it for granted that they should be able to pay and get paid by any means they wish, at any time, no matter where they are.?

The value of data is therefore of immense importance. Tapping into advanced intelligence will be a decisive factor, as players in the payment sector look to invest in the next generation of payment technologies.

This is especially true for those with the ability to make connections and recognise patterns in data to find, onboard and retain more customers and accelerate product development, improve compliance, risk assessment and fraud management, and drive efficiencies at scale…

Payment innovations include:

Blockchain

The technology underpinning bitcoin and other digital currencies, blockchain is emerging as a way for companies to instantly verify transactions.?Numerous banks, retailers, and others FSIs are experimenting with blockchain, which can enable cost-effective transactions, traceable money movement, near-instant payments and settlements, and reduce the risk of fraud.

The Internet of Things (IoT)

The need for physical cards is diminishing as connectivity and device penetration increases. As new devices come online, banks and FSIs are working to create best-in-class payment solutions for the growing world of connected devices, as well as working hard to guarantee the security and seamlessness of payments.

Crypto currency

Non-physical money is growing at a faster rate than cash. Crypto or digital currencies have the potential to replace ‘money’ as a new widely recognised form of payment. In fact, the IMF believe digital currencies have the potential to transform the financial sector and open the door to financial services for 1.7 billion people without traditional bank accounts. And as more countries become increasingly connected, crypto will facilitate trade and market integration, making its impact even more significant.

NFTs

Non-Fungible Tokens (NFTs) are tokenised versions of assets that can be traded on a blockchain, like Bitcoin or other crypto currencies. Unlike Bitcoin, however, each NFT is a unique entity and can’t be exchanged one-for-one.?NFTs are paving a new way for how digital goods and content are bought, sold, shared, and distributed.

Virtual Reality

VR technology now has application potential beyond its roots in gaming and entertainment.?Banks, FSIs and businesses can harness this technology to deliver immersive payment and trading experiences for customers – similar, if you like, to?virtual stores in e-commerce

What is Customer Lifecycle Intelligence?

There is a big opportunity for incumbent FSIs to take the lead in powering the next generation of payment innovation and compete with e-commerce, fintech disruptors, brands, and telcos if they can harness data at every stage of the payment customer lifecycle.

Forget standard customer data, Customer Lifecycle Intelligence (CLI) delivers a multi-dimensional view that combines advanced data ingestion, validation and augmentation with real-time news, social signals and more. All neatly delivered via a web app or API.

The end result is that FSIs can move fast to:

• Find the right customers – CLI takes a data matching approach combined with real-time data to deliver rich and timely insights and applies each payment service provider’s own individual rules to pre-screen customers for suitability against risk appetite statements, and the evolving security needs of the payment industry as per PCI DSS v4.0.?This reduces time and cost to acquire by ensuring banks are efficiently pursuing the best opportunities.
• Onboard with confidence - CLI enables payment service providers to provide fast, frictionless onboarding whilst reducing costs and improving compliance.?Access detailed financial and historical company intelligence (shareholders, group structure, ultimate beneficial owners and more) from verified and validated sources, contextualised and mapped to ensure nothing is missed at any stage of the onboarding process.?Identify key events like CCJs or Gazette notices immediately, by checking potential customers/merchants against global PEP and sanctions lists and stay?ahead of changes as they occur in real time.
• Keep them for life - Instead of losing time trying to collect and analyse a collection of disassociated data points, CLI provides a comprehensive 360° view, infused with sophisticated customer intelligence, customer and sector news, and constant monitoring of every single change to a customer’s information throughout the relationship lifecycle.?With CLI, payment service providers can future-proof payment decision making and provide personalised experiences that improve retention and increase upsell and cross-sell opportunities.

Don’t just take our word for it…

“FullCircl plays a really important part when it comes to simplifying our merchant onboarding journey. We trust the insights that we get from FullCircl and we don’t have to go to our customers and ask them questions.”

Ben Feilding Product Manager at Dojo, part of Paymentsense

Better Business Faster

According to KPMG, the greatest value exchange taking place in payment systems will be found in data rather than in transactions themselves, opening up a huge variety of new opportunities and securing a competitive advantage.

Get in touch with Donald Mbeutcha ([email protected]), FullCircl’s payments specialist, to explore how Customer Lifecycle Intelligence can help power your payment innovation journey.