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What lies ahead for payments in 2016?

By Kevin Jenkins, Managing Director UK & Ireland • Visa

February 04, 2016

If the UK payments in 2016 shifts anything like as quickly as our environment shifted in 2015, then banks and payment providers need to fasten their seat belts.

Last year saw a new payments regulator introduced, consumers embrace contactless payments (to the point where one in seven Visa payments is now contactless) and the launch of a game changer with Apple Pay. And I would be remiss if I didn’t mention the announcement that Visa Inc. made their approach to acquire Visa Europe.

There will be constants in the industry, there will be more devices, more services and more places to pay. Regulators and their regulation will try to keep pace with developing technology. Banks will maintain security and levels of service while new products and new players will emerge; some will shine, others will fail. These things are certain for 2016, but there will be other key developments to keep watch on:

The pace of mobile payment: Contactless is leading the shift to mobile payments (using the same infrastructure) which could drive further growth in acceptance levels by merchants too; a barrier that Barclaycard has pointed out still exists.

Our research projects that mobile payments will grow three-fold by 2020. Last year Apple Pay provided some initial momentum for paying with a smartphone. Further mobile platforms have been launched and others announced that are expected to launch in due course – when they do, this type of payment is going to take another leap forward.

Read more of Kevin’s thoughts on what lies ahead in 2016 in Global Banking & Finance review.

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