# Giving the Control of the Payment Process Back to Consumers
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2018-01-17
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: PSD2 Directive: Empowering Consumers in Mobile Payments
Meta Description: Discover how the new Payment Service Directive (PSD2) is reshaping the fintech industry and putting consumers in control of their payment experience. Be
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Tag URLs: featured (https://financedigest.com/tag/featured)
URL: https://financedigest.com/giving-the-control-of-the-payment-process-back-to-consumershtml

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By **Shane Leahy**, CEO of Tola Mobile

Handing control of the mobile payment process back to consumers will help revolutionise the fintech industry and pave way for the new providers and alternative payment methods. According to consumer commerce centreIorma, by 2018 the majority of (59%) all transactions online will be accounted for by new providers in the market who are offering more convenient and seamless ways for consumers to pay.

The [implementation of the new European payments](https://www.financedigest.com/why-are-companies-implementing-crypto-payments.html "Why are companies implementing crypto payments?") legislation is imminent, affecting the payments industry like never before and bringing the future of banking back into the hands of its consumers. In light of this banks, merchants and mobile payment providers will need to learn that personalisation, [security and ease of use are at the heart of consumer’s](https://www.financedigest.com/as-consumer-spending-increases-convenience-and-security-have-never-been-more-important.html "As consumer spending increases, convenience and security have never been more important") desires, and in time acknowledge that their processes need updating to suit.

**Anticipating the PSD2 Effect**

Ahead of the new Payment Service Directive (PSD) update in January 2018, existing payment providers should now be looking to [develop stronger customer-centric strategies](https://www.financedigest.com/closing-the-door-before-the-horse-bolts-developing-a-proactive-network-detection-and-response-ndr-strategy.html "Closing the door before the horse bolts: Developing a proactive network detection and response (NDR) strategy ") so not to miss out on opportunities to new payment providers.

Consumers have always been sceptical about how their data is looked after online, especially where [online payments](https://www.financedigest.com/online-payment-gateway-market-to-witness-a-cagr-of-10-3.html "Online Payment Gateway Market to witness a CAGR of 10.3%") are involved. PSD2’s focus is on ensuring strong consumer protection and enhanced security at every stage of the purchase journey, and whilst many regulated payment service providers will have systems and policies to manage their security risks, the new directive will solidify the requirements, help providers to become more transparent and provide stronger customer authentication (SCA) [\[1\]](#_ftn1).

Transparency will be [enhanced and reinforced giving consumers](https://www.financedigest.com/trusting-in-trust-marks-enhancing-consumer-trust-in-your-ecommerce-business.html "Trusting in trust marks: enhancing consumer trust in your ecommerce business ") more insights into their payment process; from first initial order to successful purchase. As such merchants, who are already reaching 47% of UK customers with mobile billing [\[2\]](#_ftn2), will benefit from seeing an increase in potential new customers and empowered existing consumers.

By offering more choices to [consumers and a better service](https://www.financedigest.com/do-consumers-want-robo-advisory-services.html "DO CONSUMERS WANT ROBO-ADVISORY SERVICES?"), new providers will make huge improvements in consumer empowerment within the industry. PSD2 will aim to create a level playing field for new and existing [service providers to produce an increase in personal](https://www.financedigest.com/personalizing-the-workforce-experience-in-financial-services.html "Personalizing the Workforce Experience in Financial Services") choice and availability, that will again put consumers back in charge and provide a frictionless, secure journey when purchasing via a mobile payment platform.

**Personalisation is Key**

With [brand loyalty](https://www.financedigest.com/bad-interactions-and-unethical-practices-impacting-brand-loyalty.html "Bad interactions and unethical practices impacting brand loyalty") seeming to be a thing of the past, it’s important that providers give consumers the ability to track and personalise every element of their payment journey. This will lead to a significant gain in more loyal [consumers and repeat purchases](https://www.financedigest.com/uk-consumers-conflicted-when-purchasing-insurance.html "UK Consumers Conflicted when Purchasing Insurance").

Personalisation within the payment process is as important to the customer journey as the first call to action, something that emerging companies in the hospitality sector know all about. Offering a tailored cloud-based ordering solution allows hospitality businesses to effectively manage the customer journey, streamline processes and push consumer convenience by letting them take control of their ordering and [payments experience](https://www.financedigest.com/how-netflix-justeat-and-uber-raised-the-bar-for-the-payments-experience.html "How Netflix, JustEat and Uber raised the bar for the payments experience"). Wi-Q offers a flexible [user interface that can be designed to suit all different types of markets](https://www.financedigest.com/apac-solar-micro-inverters-market-competitive-growth-strategies-based-on-type-applications-end-user-and-region.html "APAC Solar Micro Inverters Market Competitive Growth Strategies Based on Type, Applications, End User and Region"), and with the relationship between merchants and their consumers becoming increasingly complex with the path to purchase involving a variety of stops before reaching payment, personalisation will be the key to growth in mobile payment adoption and the implementation of the process from more merchants.

**Practice Makes Perfect**

The traditional [banking model is evolving and the opportunities within this new directive will shake up the industry](https://www.financedigest.com/enabling-decision-making-success-in-the-banking-industry-3-considerations.html "Enabling decision-making success in the banking industry – 3 considerations") as we know it. [Consumers will be looking for the best propositions from banks](https://www.financedigest.com/the-new-wave-of-consumer-friendly-banking.html "The new wave of consumer-friendly banking") that offer them security, merchants that allow them to personalise their payment journey at every step, and new players who offer them no transaction charges and freedom of payment platform choice.

With consumer control at the forefront of all strategies as we head into a new [era of mobile payments](https://www.financedigest.com/combating-payment-fraud-in-the-era-of-contactless-everything.html "Combating payment fraud in the era of contactless everything"), ensuring the payment process is a seamless and personalised as possible is crucial. Merchants, banks and [fintech companies](https://www.financedigest.com/7-cyber-threats-fintech-companies-should-watch-out-for.html "7 Cyber Threats FinTech Companies Should Watch Out For") will need to diversify their product proposition for a better consumer offering and bring online, media and mobile payments together to be more compelling in the payments industry.

[\[1\]](#_ftnref1) [http://emoneyadvice.com/psd2-security/](http://emoneyadvice.com/psd2-security/)

[\[2\]](#_ftnref2) [http://www.mobilemoneyrevolution.co.uk/global-carrier-billing-revenue-set-to-rise-by-10bn-to-hit-24-7bn-by-2019/](http://www.mobilemoneyrevolution.co.uk/global-carrier-billing-revenue-set-to-rise-by-10bn-to-hit-24-7bn-by-2019/)


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