Capital One conducted a survey of 151 innovators in emerging payments and financial services at Money 20/20, the world's leading payments and financial services innovation event, in Las Vegas on October 26-27, 2015. The survey includes responses from executives in payments & financial services, investment, analyst, media, government, and consulting services, as well as mobile, retail, integrated commerce & marketing services.
Key Findings
Respondents cite big data analytics and alternative forms of payments (P2P platforms, social media, etc.)
as the innovations having the greatest impact on the financial services space in the next 3-5 years.
More than half (56%) of respondents predict that the majority of payments in 2030 will be cashless, non- paper based.
Half of respondents (52%) think by 2030, the fingerprint reader will be the dominant means of security protection for consumers making payments via mobile devices.
Innovation: Next 3-5 Years Predictions: 2030
According to the survey, more than half (53%) indicated big data analytics and alternative forms of payments (P2P platforms, social media, etc.) as the innovations having the greatest impact on the financial services space in the next 3-5 years. Nineteen percent of respondents believe blockchain will have the greatest impact on the financial services space in the next 3-5 years.
This was followed by Internet of Things at 17%, and artificial intelligence at 9%. Respondents within the investment, media, government and consultant business were more likely to rank blockchain higher than those in payments/financial services or mobile/retail businesses. This is interesting as blockchain, first developed for cryptocurrency Bitcoin, is gaining attention as firms look to develop viable applications for the technology in the financial services sector.
Figures for biometrics (e.g. fingerprinting, iris scans, etc.) (28%) and tokenization (27%) suggest that over half the respondents believe those innovations will have the largest impact on payments fraud prevention over the next 3-5 years. What's interesting is that this was followed by blockchain at 17%, while only 14% cited EMV/chip - the technology which has gained the most airtime recently given the United States' recent transition to the standard in an effort to thwart card present fraud. Nearly 12% of respondents also indicated facial recognition (e.g. Smile to Pay, Selfies) will have the biggest impact in the next 3-5 years.
We asked attendees to choose a prediction they believe is most likely to come to fruition by 2030. The majority of survey respondents (56%) believe the majority of payments in 2030 will be cashless, non-paper based. We also asked about the future of payments security. By 2030, half of respondents (52%) believe fingerprint readers will be the dominant means of security protection for consumers making payments via mobile devices; nearly 20% indicated retina scan; 11% said other; 9% chose password input; and about 9% selected DNA reader.
Nearly 22% of overall respondents, and 26% of payments and financial services companies predict social media shopping will account for nearly half of holiday sales transactions in 2030. Thirteen percent believe P2P platforms like Venmo will surpass mobile or online banking in popularity for transferring money by 2030.
Almost 9% see blockchain becoming the new normal being applied across the financial spectrum as well as many other industries.
Payments Security: 2030 Respondent Profile
6 out of 10 respondents in mobile, retail, integrated commerce and marketing services believe the fingerprint reader will be the dominant means of security protection for consumers making payments via mobile device by 2030. This is compared to 52% of payments and financial services executives and 38% of investment, media, analyst, government, consulting executives.
55.63% -- Payments & Financial Services
23.84% -- Investment, Analyst, Media,
Government, Consulting & Other Services
20.53% -- Mobile, Retail, Integrated
Commerce & Marketing Services
Total: 151 respondents
The Data
27%
2%
9%
17%
26%
19%
17%
27%
14%
12%
2%
28%
Big data analytics
Alternative forms of payments/lending Blockchain
IoT AI
Other
Biometrics Tokenization Blockchain EMV
Facial recognition Other
The Data
22%
9% 13%
20%
10%
9%
9%
56%
52%
Majority of payments in 2030 will be
cashless, non-paper based
Social media shopping will account for nearly half of holiday sales transactions in 2030
Fingerprint reader Retina scan Other
Password input DNA reader
Blockchain becomes the new normal and will be applied across the financial spectrum as well as many other industries
P2P platforms like Venmo will surpass mobile or online banking in popularity for transferring money
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