A new whitepaper from Payments UK, entitled World Class Payments in the UK: Enhancing the payments experience, attempts to answer the following question: What will it take to ensure that UK payments will continue to be world class? The authors contend that the future of payments is all about enhancing the payments experience through innovation in such a way that makes people say, “How did we ever live without that?”
The whitepaper offers a wealth of findings from recent surveys that drill down to specific sectors, including consumers, businesses, government and Payment Service Providers (PSPs).
Below are excerpts of some of the key reported findings:
SME Payments Wish List:
For small and medium-sized enterprises (SMEs) the top three most popular potential future changes were:
- “Having all payments to and from other accounts completed immediately” (57%)
- “Being able to check that the bank details are correct for the person I want to pay before I send an electronic payment so that it does not go to the wrong account” (57%)
- “Being able to know who has sent a payment and what it is for” (54%)
UK Payments reports that SMEs and charities have some very specific needs when it comes to payments. They are looking for greater payments flexibility with systems that can be tailored to their individual business models. SMEs and charities are mainly interested in fast and easy onboarding, as well as access to payments information that can be monitored for accuracy and security purposes.
The report’s authors identified four areas of focus that would address some of these needs and allow the UK to continue to have world class payments going forward. As excerpted from the report, these areas of focus include:
- Open access for those who offer payments services to customers: Simpler and more open access to the payments infrastructure for PSPs, from a technical (standards and connectivity) and business rule perspective. This will achieve efficiencies, interoperability and a level playing field for banks (traditional, small and challengers). This capability has been identified as the most important core deliverable, as it will provide the best platform on which to deliver further improvements for customers and deliver a world class payments experience.
- Confirmation of payee: Enabling confirmation for customers that the person they are paying is who they intend it to be, before they make the payment, to provide confidence that the payment will not be sent to the wrong account.
- Request to pay: Giving customers more control over outgoing payments, enabling flexibility over the timing of their regular payments to fit with income and money management needs. This would also provide an efficient e-invoicing/donation capability for SMEs and charities, larger corporations and government.
- Enhanced data: Enabling more and better information to be linked to payments – this will particularly benefit the public sector and corporations. It will make it possible to provide additional reference information with an electronic payment helping businesses better reconcile payments.
As we’ve discussed previously on the blog, ease of onboarding and monitoring capabilities are cornerstones of Credorax’s approach to high-tech acquiring. We agree that payments in the UK needs the support of innovation and technology in order to remain world-class.
You can download a copy of the report by clicking here.