# PPRO Group 2019 Payment Tech Predictions Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2019-01-11 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: Generation Z: The Mobile Takeover Meta Description: Learn how Generation Z is shaping societal trends and the importance of Alternative Payment Methods for businesses in 2019. Stay ahead of the game with URL: https://financedigest.com/ppro-group-2019-payment-tech-predictionshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/ppro-group-2019-payment-tech-predictions-1736840146499-compressed.jpg) **Ronnie D’Arienzo**, Chief Sales Officer at PPRO Group 1. **The Mobile Take Over** Generation Z (those born between 1996 and 2010) are arguably having the biggest influence on societal trends today. For instance, most of those classed as Generation Y can remember the days of dial-up internet and landlines, as the [World Wide Web](https://www.financedigest.com/jetlearn-the-worlds-first-web-3-0-online-academy-for-k-12-raises-e1-2m-in-seed-round-to-launch-its-platform-in-the-uk.html "JetLearn, the world’s first Web 3.0 online academy for K-12, raises €1.2m in seed round to launch its platform in the UK") wasn’t invented until 1990. This [generation](https://www.financedigest.com/white-bullets-integration-with-silverbullets-next-generation-context-outcomes-engine-4d-is-now-live.html "White Bullet’s integration with Silverbullet’s next generation Context Outcomes Engine, 4D, is now live") was born and lived at least a few years of their lives outside of the always-on, constantly connected, mobile-driven world that we know today. However, Generation Z has been born into the era of the internet and mobile devices, and don’t know life any other way. The oldest of this generation has now begun to enter employment and has the spending power which means their demands have quickly driven societal expectations with regards to how [mobile technology](https://www.financedigest.com/adverty-wins-third-us-patent-for-brainimpression-bringing-ad-viewability-technology-to-gaming-on-mobile-tv-screens-and-the-wider-metaverse.html "Adverty wins third US patent for BrainImpression™, bringing ad viewability technology to gaming on mobile, TV screens and the wider metaverse") should be recognised at virtually every consumer touch point – particularly within the retail and banking sectors. In fact, within the [next four years](https://www.financedigest.com/austria-plans-to-bring-budget-deficit-within-3-of-gdp-next-year.html "Austria plans to bring budget deficit within 3% of GDP next year"), Gen Z will account for 40 percent of all consumers, and their expectations for fast, seamless and secure retail and banking experiences will be higher than ever. Without a doubt, having a mobile first solution will be even more critical in 2019 should both the [physical](https://www.financedigest.com/vr-virtual-reality-to-sweep-the-physical-therapy-services-market.html) and [online retailers](https://www.financedigest.com/why-online-retail-trading-needs-an-overhaul.html "Why online retail trading needs an overhaul") and banking institutions want to survive on the torturous British highstreets. WompMobile, in collaboration with Google, [analysed their eCommerce clients](https://www.wompmobile.com/google-amp-case-study/) and found that those which used Accelerated Mobile Pages (AMP) increased conversion rates by 105%, decreased bounce rates by 31% and increased click-through rate from search engines by 29% [\[1\]](https://mail.google.com/mail/u/2/#m_67721853188489934_m_3601762595150425471__ftn1). 2. **[Rise of Alternative Payment](https://www.financedigest.com/unfolding-the-great-payments-disruption-how-consumers-can-navigate-this-new-financial-world-and-how-financial-institutions-can-rise-to-the-challenge.html "Unfolding the Great Payments Disruption – how consumers can navigate this new financial world and how financial institutions can rise to the challenge") Methods (APMs)** Visa and Mastercard account for only 23% of global eCommerce today; by 2021 that number will be as low as 15% [\[2\]](https://mail.google.com/mail/u/2/#m_67721853188489934_m_3601762595150425471__ftn2). This is driven by merchants realising that in order to reach a broader global consumer market, they need to offer the [payment](https://www.financedigest.com/leading-number-plate-dealer-streamlines.html) method of their customers’ choice. Unlike the US and the UK, for example, where a strong and established card acquiring model exists, many [markets prefer](https://www.financedigest.com/walk-in-coolers-and-freezers-market-preference-for-customized-and-smart-machines-growing.html "Walk-in Coolers and Freezers Market: Preference for Customized and Smart Machines Growing") ‘alternative methods of payment’ (often this is culturally driven). Card centric cultures, such as the UK, that heavily depends on debit and credit [payment cards](https://www.financedigest.com/fingerprints-and-tag-systems-collaborate-to-offer-contactless-biometric-payment-cards-globally.html "Fingerprints™ and Tag Systems collaborate to offer contactless biometric payment cards globally"), seeing alternative payment methods enter the market, such as PaybyBank app, Venom and Klarna etc. It is also worth noting that in China UnionPay (local credit card) recently overtook Visa as the world’s largest form of [card payments](https://www.financedigest.com/fingerprints-supports-two-more-biometric-payment-card-launches-in-the-mena-region.html "FINGERPRINTS’ SUPPORTS TWO MORE BIOMETRIC PAYMENT CARD LAUNCHES IN THE MENA REGION") by transaction value and number of users. Even ApplePay is entering into the non-debt, cash based German market. The list is almost endless as there are approximately 350 relevant APMs worldwide, but it is key that the [merchant chooses only what is needed for them and ensures checkout](https://www.financedigest.com/psd2-merchants-must-regain-checkout-control-through-delegated-authentication.html "PSD2: Merchants Must Regain Checkout Control Through Delegated Authentication") pages are relevant and not cluttered. 2018 has seen many Payment [Service Providers](https://www.financedigest.com/unprecedented-constructive-disruption-to-drive-the-sleep-service-providers-market.html "Unprecedented, constructive disruption to drive the Sleep Service Providers Market") (PSPs) and Acquiring Banks recognise this and begin to add APMs to their portfolio for merchants. However, if merchants don’t address cultural [payment](https://www.financedigest.com/leading-number-plate-dealer-streamlines.html) differences with the help of their PSPs, 2019 will see them miss out more than ever. Consumers don’t take any hostages and if you can’t give them what they want, they will quickly go to a competitor who can. 3. **Trend towards omni-channel shopping** There is much hype over brick-and-mortar stores becoming a thing of the past. However, with consumers craving something tangible, I predict that in 2019 we will see the [online shopping](https://www.financedigest.com/increasing-trend-of-online-shopping-to-create-new-growth-opportunities-for-stretch-sleeve-and-heat-shrink-labels-market-says-tmr.html "Increasing Trend of Online Shopping to Create New Growth Opportunities for Stretch Sleeve and Heat Shrink Labels Market, Says TMR") phenomenon begin to penetrate [physical](https://www.financedigest.com/vr-virtual-reality-to-sweep-the-physical-therapy-services-market.html) stores. For some consumers, nothing e-commerce has to offer can quite measure up to the physical in-store experience. High street outlets are also recognising that [creating a social and omni-channel experience](https://www.financedigest.com/customer-experience-creating-the-calm-in-the-chaos.html "Customer Experience: creating the calm in the chaos") is key to bringing footfall back. In fact, [leading global](https://www.financedigest.com/automated-liquid-handling-systems-market-global-leading-companies-analysis-revenue-trends-and-forecasts-2027.html "Automated Liquid Handling Systems Market Global Leading Companies Analysis, Revenue, Trends and Forecasts 2027") retailers like Amazon and Alibaba are now experimenting with the newly revived power of hands-on shopping. For example, Amazon recently [opened a store](https://www.financedigest.com/lego-posts-strong-growth-on-robust-demand-new-store-openings.html "Lego posts strong growth on robust demand, new store openings") in New York offering a range of bestselling items and additional items that were chosen to directly reflect consumer buying behaviours in the region. The concept store is set to turn traditional shopping on its head by replicating the virtual within the physical. Copying the structure of the Amazon website, the store has [products organised by headings already known to online](https://www.financedigest.com/four-innovative-ways-to-pay-for-products-online.html "Four Innovative Ways to Pay for Products Online") shoppers such as “Trending Around NYC”, “Frequently Bought Together” and “Amazon Exclusives. Alibaba Group also seems to believe in the renaissance of [physical](https://www.financedigest.com/vr-virtual-reality-to-sweep-the-physical-therapy-services-market.html) stores, as it recently debuted its first ‘Fashion AI’ concept boutique in [Hong Kong](https://www.financedigest.com/luxury-yacht-owned-by-sanctioned-russian-oligarch-docked-in-hong-kong.html "Luxury yacht owned by sanctioned Russian oligarch docked in Hong Kong"). The store displays a selection of Guess [apparel with the help of a “smart mirror” that shows product information](https://www.financedigest.com/golf-apparel-market-key-players-and-production-information-analysis-with-forecast-2031.html "Golf Apparel Market: Key Players and Production Information Analysis with Forecast 2031") on a special screen while shoppers are examining the items. The smart mirror points to where the garments in question can be found, utilising another way to bring the digital [shopping](https://www.financedigest.com/youtube-expands-shopping-features-to-combat-digital-ad-slowdown.html "YouTube expands shopping features to combat digital ad slowdown") experience inside physical stores using digital signage. While digital kiosks aren’t unknown to brick-and-mortar retail, in 2019 digital signage, will begin to offer additional interactivity, increased engagement, and a seamless omnichannel experience for consumers. For example, just one of the many benefits will mean customers will be able to use the interactive [screens to order goods in-store to be delivered direct to their front door](https://www.financedigest.com/closed-platform-screen-doors-market-an-array-of-graphics-and-analysis-of-major-industry-segments-2021-2031.html "Closed Platform Screen Doors Market : An Array of Graphics and Analysis of Major Industry Segments 2021 – 2031"). Shoppers will be able to enjoy product visualisation that was once perhaps only available online via digital installations in physical environments, where experience will become a [central point](https://www.financedigest.com/polish-central-bank-holds-rates-points-to-slowdown-ahead.html "Polish central bank holds rates, points to slowdown ahead") to the store of the future. Besides offering improved product visualisation, digital signage will also allow customers to browse goods that are not available in stores and select direct [home delivery](https://www.financedigest.com/ikeas-home-deliveries-will-be-fully-electric-by-2025-ceo.html "IKEA’s home deliveries will be fully electric by 2025 – CEO"). All of this will be made possible with the introduction of omni-channel [payment](https://www.financedigest.com/leading-number-plate-dealer-streamlines.html) methods, such as Alipay and increasingly PayPal, that can be used online and instore with the same account, also acting as loyalty cards, to make payments easier than ever.  Just about any shopping [scenario will be possible](https://www.financedigest.com/factbox-possible-scenarios-as-italys-government-faces-collapse.html "Factbox-Possible scenarios as Italy’s government faces collapse"). 4. **Mergers & Acquisitions** The digital [payment and transaction processing segment accounts for 40% of the fintech sector’s top](https://www.financedigest.com/top-5-payment-trends-for-2016.html "TOP 5 PAYMENT TRENDS FOR 2016") deals in 2018. For example, PayPal’s $2.2 billion all-cash acquisition of Stockholm-based payments provider iZettle and Worldline, agreed to buy the payments unit of Swiss stock market operator, SIX Group, for $2.75 billion. As for [online and electronic 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%") processing, whilst the transactions were predominantly focused in the U.S market, the largest of these deals was the $442 million sale of First Data’s card processing business in seven European countries to its Italian rival SIA. Other prominent acquirers in 1H2018 include payments processing company, Paysafe Group, which was itself taken over by buyout firms, Blackstone and CVC capital Partners in 2017. The implementation of Europe’s PSD2, is likely to be a major game changer for the M&A landscape as it will force banks to collaborate and innovate with Fintech providers, as well as encourage pan-European competition and participation in the [payments industry](https://www.financedigest.com/end-of-year-overview-of-the-payments-industry.html "End of year overview of the payments industry"), including non-banks. As a result, it is likely to encourage a high-volume of bank and Fintech M&As early [next year](https://www.financedigest.com/suedzucker-expects-to-raise-its-sugar-prices-again-next-year.html "Suedzucker expects to raise its sugar prices again next year"). Those new to the market will therefore find a more level playing field with harmonised consumer protection and rights, which will encourage new entrants to the financial [services market and fuel further M&A deal growth](https://www.financedigest.com/nanotechnology-to-spell-the-growth-quotient-gq-of-drug-designing-services-market.html "Nanotechnology to spell the growth quotient (GQ) of Drug Designing Services Market") and valuations. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---