Consumers are embracing contactless, omnichannel transactions—and payments providers must adapt

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PAYMENTS & COMMERCE

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The Industry's Biggest Shifts, Trends, and Evolution—and What the Pandemic's Impact on Digitization Will Mean for the Payments Landscape



* This chart and data were pulled from The Payments Ecosystem Report by Insider Intelligence. Purchase the report here to get immediate access to the full analysis.
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The coronavirus pandemic set the pace of payments industry innovation to warp speed. Consumers rapidly changed their shopping and purchasing habits to quickly embrace contactless, omnichannel, and online payments amid escalating health concerns and restrictions.

To adapt, merchants quickly digitized to keep doors open and sales flowing in the current climate. And payments providers had to adjust their channel strategies and develop new offerings to meet merchants' shifting needs and ensure they were able to retain their base and attract new clients.
  • Payment networks act as hubs that enable funds to flow from the payer's FI to the recipient's. Card networks route transactions between issuers and acquirers, and establish rules that others involved in payment card processing must obey. Most prominently, these providers help set merchant-facing interchange and other network fees, within regulatory limits, that are paid to issuers and other stakeholders. Noncard networks, like ACH, already see substantial volume—but they are becoming competitors to card networks for a wider set of use cases.
  • Payment Gateways: More merchants are building out their online presence and unifying their software across channels, making gateways increasingly prominent in the ecosystem. These players are beginning to threaten the positioning of more traditional processors: Adyen grew 23% annually to process €129.1 billion ($144.5 billion) in H1 2020 despite the global spending slowdown as it continues to pick up high-profile etail and omnichannel partners.
  • Independent Sales Organizations (ISOs) and Merchant Service Providers (MSPs) are being forced to change their business models as more merchants—including some larger sellers—adopt mobile point-of-sale (mPOS) and other turnkey solutions. In the past, businesses mostly relied on bulky and expensive POS devices, giving an opportunity for ISOs and MSPs to service them. But cheaper and smaller terminals are...
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This is just a preview of the information and insights you'll find in The Payments Ecosystem Report by Insider Intelligence. Purchase the report today for $995 to access the full analysis.
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Digital unification tops Truist’s to-do list

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What to read today: US Banking Tech Spend Forecast: Insider Intelligence explores underlying factors we expect to impact on US banks' IT/tech spending through the entire forecast period, including cybersecurity spending, IT infrastructure maintenance, and economic slowdown; factors specific to each expected phase of the pandemic; and finally factors unique to each of the nine banks included in this forecast..
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January 30, 2021
Business Insider Intelligence
Truist spends big on unified digital platforms post BB&T-SunTrust merger.
Truist's Q4 2020 earnings included an adjusted net income of $1.6 billion. Like other large banks, its provision for credit losses fell as perceived risks from the pandemic ebbed, boosting its Q4 profit.

The ongoing effects of the December 2019 BB&T and SunTrust merger that created Truist remain front and center, as the company integrates legacy staff and infrastructure.

And unifying the digital customer experience is a major focus of Truist's tech efforts.

Insider Intelligence's Tyler Brown has the full story.
BRIEFING HIGHLIGHTS
Allianz deepens partnership with German neobank N26
Allianz has expanded its travel insurance coverage for neobank N26's users to include pandemic-related claims.
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Victory Park launches fintech SPAC with $225 million IPO
Victory Park's latest shell company seeks a $225 million IPO to acquire high-growth fintechs outside of the US.
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UK merchants to face post-Brexit fee increase from Mastercard
In response to Brexit, Mastercard is reportedly planning to increase fees for UK online card purchases.
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Current's overdraft cushion is a costly customer satisfaction play
Current shielded clients from $100 million of overdraft fees in the last eight months—an expensive but effective way to boost loyalty.
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Walmart is looking to scale order fulfillment efforts
Walmart plans to bring its tech-heavy local fulfillment center concept to more stores to ramp up online fulfillment processes.
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Discover's earnings rebound in Q4 as pandemic recovery pushes forward
Discover's Q4 earnings report shows volume growth improvement across its main categories—bringing overall sales volume up 5% YoY.
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Insurtech Sidecar Health scores megaround to become a unicorn
Sidecar Health has raised $125 million for its cheap and transparent health insurance coverage—earning it unicorn status.
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By Bits rolls out white-label usage-based insurance offering
By Bits launched a white-label solution to help insurers bring usage-based insurance to market, enabling them to capitalize on the growing UBI trend.
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Chase brings new digital bank to UK—but standing out won't be easy
Chase confirmed a digital-only bank launch in the UK—and it could use the addition of in-demand, timely features to stand out against competition.
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Nubank's explosive growth is continuing on all fronts
Nubank raised $400 million and has nearly tripled its users since 2019, and it should prioritize bringing more valuable products to its customers.
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RESEARCH IN FOCUS
US Banking Tech Spend Forecast
Insider Intelligence explores underlying factors we expect to impact on US banks' IT/tech spending through the entire forecast period, including cybersecurity spending, IT infrastructure maintenance, and economic slowdown; factors specific to each expected phase of the pandemic; and finally factors unique to each of the nine banks included in this forecast.
Get the full report →
The Payments Ecosystem
Insider Intelligence examines the payments ecosystem today, as well as the pandemic's impact on growth drivers and the industry's future. The report traces the path of in-store and online payments from processing to settlement across key stakeholders.
Get the full report →
The Evolution of Digital Stock Trading
Insider Intelligence explains how startups sparked change in the stock trading industry; gives an overview of the key players in the stock market today, and where startups like Robinhood fit in; examines how the increasing appetite for self-directed investing is creating a growing market opportunity for startups and incumbent trading platforms; discusses the features that distinguish startups from older trading platforms; and explores other new entrants fighting for a slice of this market.
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[Free Report] 25 Bold Predictions for 2021

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To help you stay ahead of the curve, Insider Intelligence has put together a list of 25 Bold Predictions for 2021, across Banking, Digital Health, Payments & Commerce, Fintech, and Connectivity & Tech.
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25 Bold Predictions for 2021

[Free Report] 25 Bold Predictions for 2021
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2020 was defined by the coronavirus pandemic.

While in many ways the world was brought to a halt, digital transformation only accelerated.

Telehealth, virtual conferencing, and remote work became the norm – while other digital processes and products were pushed to the forefront of everyday life. In 2021, we expect to see even more transformative developments that will change our businesses, careers, and lives.

To help you stay ahead of the curve, Insider Intelligence has put together a list of 25 Bold Predictions for 2021, across Banking, Digital Health, Payments & Commerce, Fintech, and Connectivity & Tech.

To access a preview of the list, simply click below and fill out the form.

A member of our sales team will contact you to speak more about Insider Intelligence research, and can provide a copy of the full PDF that includes details on each prediction.

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Sign up now! What's on tap for the red-hot IPO market in 2021

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