Money management services, which include budget and spend information, debt management, best method of payment analysis, and goal savings.
Account management services, which include online-reconcilement, e-receipts, and loyalty.
Risk management services, which include proactive fraud alerts especially for card-not-present payments.
Demographic-oriented services, which include product bundles designed to address the needs of specific consumer groups such as ethnic sectors and baby boomers.
- The idea of separating the online and offline consumer payment experience should be completely debunked by the end of 2013 and issuers are considering how their payment brand fits into the omni-channel buying and payment experience. This year, a few of the big mobile wallet solutions finally entered the market including ISIS (open model), V.me (network model), and a re-engineered Google Wallet (device-dependent model). Do any of these pose a near-term threat to debit issuers? Mercator’s opinion is: Not in 2013. But issuers who are not participating in theses pilots might want to consider how their brand fits into these different business models and where they want to be positioned in a newly engineered value stream.
- Mercator Advisory Group believes that 2013 is the year that retail banks should move into the person-to-person (P2P) payments market as a new payment form and a means of expanding the value of mobile banking services into retail payments. Breaking P2P out of online banking bill-pay sites and onto consumer handsets will help move the market forward into accepting new payment form factors and help debit issuers defend against non-bank centric products.
The most problematic competitors that retail institutions face are themselves and the legacy of vertical product business lines, lack of actionable data, and fear of breaking apart business models, which are already in decline. Even with the challenges inherent in a developed and highly competitive market, we find that consumers still consider their retail banks and credit unions trusted financial services partners. If that’s too optimistic for some (and many nontraditional services advocates certainly think it is), it should be a strong indicator that investments need to be made now that are critical to debit issuers interested in participating in the next generation of pay-now products, services, and technologies.