Global networks and fintech: the future of emerging payments

Soumya Dev Chakrabarty, Discover Global Network: To ensure seamless and secure transactions, partnership is key. That is why we rely on our partnerships with issuers, acquirers, and payment technology companies for enhanced customer experience

Over the past five years, the payments industry has witnessed several trends regarding customer behaviour and the adoption of new payment methods, technologies and business models – each of them pushing toward a more cashless society. 

Three major payment trends have been developing over this period: touchless payments, real-time payments, and payments security. Each of these trends has one thing in common: the technological innovation that is enabling the surge of “contact-free” payments. 

Touchless payments 

Today, with the global pandemic caused by the spread of COVID- 19, businesses are looking even more to both innovate and adapt to a different mindset. Four in five consumers are already shifting their in-store spend online, and 50 percent of merchants are expecting online sales to be higher as a result of the coronavirus outbreak, a 451 Research study found. 

This shift from cash to digital has been led by contact-free payments – whether transacted online or with contactless cards in-store – that seek to create a seamless journey for the consumer. 

E-wallets, QR code payments, and alternative wallets have also been on the rise, initially tailored for in-store experiences, now also providing a new environment for ecommerce and m-commerce. 

Having started with an impressive footprint in Asia, these options are now reaching European and American consumers, while also becoming relevant not only for in-store transactions, but for online payments as well. 

Real-time payments 

A second dominant trend is the development of real-time payments, which provides value to the gig economy, online marketplaces and account-to-account transactions. By incorporating real-time disbursements, gig economy workers have immediate access to payments and funds, while buyers and sellers enjoy simplified transacting in both B2B and B2C marketplaces. 

Payments security 

In addition to convenience, security remains a critical factor in online transactions, giving rise to the need for new authentication and risk-control methods. At Discover® Global Network, these concerns have led to enhanced layers of security in the company’s product called ProtectBuy®, a 3DS customer authentication solution, which aims to protect both consumers and merchants from fraud.

Emerging technologies shaping the present and future of payments 

While society has recently adopted an increase in social distance due to the COVID-19 pandemic, we continue to live in an ever-increasingly connected world, and one that is building a fully connected economy. Consumers all over the world use multiple devices on multiple channels to transact. Some make use of the latest augmented-reality powered apps, thus having unique ways of interacting with merchants. New 5G technology will make this connectivity faster and more accessible and has the potential to unlock radically new features in the IoT space. 

As this connected economy continues to grow, payments organizations, including Discover® Global Network, must also ensure that, while the experiences are seamless and frictionless, they are also secured with adequate protection through authentication. Biometrics will continue to add new layers of security, including voice recognition, while new types of digital authentication for devices and channels will continue to evolve. Discover Global Network also collaborates with key standard bodies, such as the PCI Security Standards Council, to further develop new security capabilities to help ensure interoperability within the entire ecosystem. 

The value of partnerships with fintechs 

Discover Global Network takes innovation forward by collaborating with fintechs, while addressing all the trends mentioned above and related technologies. To ensure seamless and secure transactions, partnership is key. That is why we rely on our partnerships with issuers, acquirers, and payment technology companies for greater acceptance, enablement, digital transformation, and enhanced customer experience. 

By providing flexible capabilities that fit the needs of our partners, new products and solutions are brought to the market, with an emphasis on meeting consumer needs. We also continue to evolve our partnership strategy to incorporate new experiences, including various white-label partnerships with financial services companies that rely on our payment rail or platform to develop their services, and ultimately, increase merchant acceptance. 

At Discover Global Network, we believe innovation is the foundation for growth. And we continue to partner with universities, technology providers and payment partners to help lead the change. We have used our unique infrastructure to power partners’ progress and become the fastest-growing global payments network. With proprietary technology and employees who are dedicated to bringing our partners’ vision to life, we are dedicated to helping them expand their business in next-generation security, new payment technologies and new customer engagement strategies. 

As the pace of innovation increases, more companies than ever are valuing the ways Discover Global Network engages with partners – so they can think big, implement efficiently and maintain a competitive edge. 

Visit us here to learn more about our products and services, and feel free to reach out to discuss ways to build a successful collaboration.

This article was published in our Payment Methods Report 2020, an extensive overview of what’s new in how people pay in the most relevant ecommerce markets.

About Soumya Dev Chakrabarty

Soumya is the Head of Strategic Partnerships for Discover Global Network and is responsible for developing and expanding partnerships with marquee Fintech and Big Tech organizations. Soumya previously served as the Head of R&D and Innovation for Discover Global Network where he led the team responsible for assessing new and emerging technologies, developing new business opportunities, building new concepts, evangelizing ‘the company’s’ brand’s innovation capabilities, and piloting new capabilities. He has been involved in the area of emerging payment technologies and partnerships for the past 15 years. 

About Discover Global Network

Discover Global Network, the global payments brand of Discover Financial Services, processes millions of cardholder transactions each day. With industry expertise, innovative technology and a closed-loop infrastructure, Discover Global Network provides effective, customized solutions that evolve as needs change. Discover Global Network has alliances with more than 18 payment networks around the world and is led by three Discover businesses: Discover Network, with millions of retail and cash access locations; PULSE®, one of the leading ATM/debit networks in the U.S.; and Diners Club International®, a global payments network with acceptance in more than 200 countries around the world.