Globally, more than 65% of consumers prefer to transact financial services online through apps or websites, but in Spain and France, third-party providers remain popular. The same is true when it comes to payment methods. Although credit and debit cards are a popular choice for payments for 41% of respondents combined, there is a significant share of the market open to using alternative payment options, which is most pronounced in markets such as China, where card preference falls. up to 13%.

The takeaway for financial service providers? A single channel or method approach is not enough if financial services are looking to serve global markets. To effectively engage with customers and learn where they are and how they would like to pay, financial service providers must focus innovation investments on developing a consistent, high-quality experience across all touchpoints. contact and in all methods.

Finally, the foundation of any excellent financial services payment system is security. It is the silent guardian of consumer confidence in this industry. Facilitating secure transactions is not a one-size-fits-all solution, but an ongoing commitment to safeguard against fraud and breaches, while ensuring compliance with regulations. It’s no surprise, then, that nearly two-thirds (63%) of consumers say the most satisfying aspect of their current provider’s payment experience is feeling confident that their data is safe, giving an indication of the premium imposed on the security guarantee.

In attempts to protect consumers, companies may be tempted to maximize payment security, but building the walls too high can sometimes have a negative side effect. An overly guarded approach can lead to false positives and increase dropout because the experience is too complex. Implementing an effective and non-evasive fraud prevention strategy to help mitigate this is a key factor for success.

Therefore, financial services companies should look for innovations that can be incorporated into their security strategies. For example, tokenization can help businesses securely store customer card details and protect account information. Elsewhere, fraud solutions that use extensive biometric and transactional data and scalable machine learning capabilities can further help them make intelligent, real-time decisions to manage risk more effectively.

Just because payment innovation doesn’t look the same in financial services as it does in other sectors, that doesn’t mean businesses are lagging behind. Organizations in this industry that focus on subtle improvements aren’t robbing customers of options here, they’re focusing on giving them the right ones. Payments in financial services shouldn’t compete with bells and whistles, but rather leverage technologies that enable them to consistently create better experiences, simplicity, convenience, and most importantly, security.

Silvia Mensdorff-Pouilly is Head of Business Development EMEA Enterprise at Worldpay

“Don’t reinvent the wheel: why less is sometimes more when it comes to payments for financial services” was originally created and published by International electronic paymentsa trademark owned by GlobalData.

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