OverviewJuniper's new research on Strategies for Payment Providers is specifically designed to provide payments industry executives with an objective assessment of how an array of possible business approaches will play out, enabling them to prioritise their decisions in this fast-evolving space.
Providing an in-depth assessment of digital payment provider challenges and opportunities, this research is a must-have strategic guide for industry professionals.
- Evaluates the strategic options open to players across the payments industry, including PSPs (Payment Service Providers), payment networks and wallet providers.
- Assesses the future impact of key disruptive factors, including technological and regulatory developments.
- Provides an analysis of the shifting dynamics within key national and regional markets.
- Delivers benchmark market forecasts for the transition of spend from analogue to digital channels.
- Strategic guide to maximising new revenue streams and cost reduction.
- Matrix-based assessment of primary challenges facing payment providers.
- Heat map analysis enabling digital payment providers to prioritise their strategic decisions and maximise their revenue potential.
- 3 Juniper Leaderboards, positioning 38 players across the payments ecosystem.
- Scenario-based forecasts for key offline and online payment opportunities.
- 1. How can digital payment providers maximise their revenue opportunity?
- 2. Which business models will be 'best fit' options for OEMs and OTTs?
- 3. Which players are in the best position to capitalise on the burgeoning digital payments market?
- 4. To what extent will analogue payments migrate to digital over the next 5 years?
- 5. Can telcos deliver digital payment services?
Interviewed: Bango, Gemalto, Giesecke & Devrient, Netsize, a Gemalto Company, OT (Oberthur Technologies), Vodafone.
Profiled in Juniper Leaderboards: Adyen, Airtel, Alipay, Amazon, America Movil, Apple, AT&T, Atos (Worldline), Bell Canada, Braintree, Chase Bank, China Mobile, CyberSource, Deutsche Telekom, First Data, Globe, Google, Klarna, Mastercard, MTN, Orange, PayPal, Paysafe, Paytm, Sage Pay, Samsung, Skrill, Square, Stripe, Telefonica, Telenor, VEON, Verizon, Visa, Vodafone, Weixin/WeChat, Worldpay, Yandex.
24*7, 2C2P, ACI Worldwide, Alibaba, American Express, Ant Financial Group, Arbejdernes Landsbank, Archies, Arvind, Association of Local Banks, Savings Banks and Cooperative Banks, Aurelia, BanaMex, Barclays, Best Buy, Better than Cash Alliance, Bijilipay, BlackBerry, BOKIS Partnership, Boku, Braintree, Capital One, Century Payments, Chain, Citrus Pay, Claro, CMB (China Merchants Bank), Colour Bar, Digital Currency Group, Discover, eBay, EcoBank, EE, EMVCo, Envoy, EPC (European Payments Council), Ericsson, Facebook, Fifth Third Bank, Fortumo, GM (General Motors), GSMA, Gyft, Hyperledger Project, IBM, ICICI Bank, Indosat, Ingenico, Inside Secure, IPC Media, JCB, JP Morgan, Jyske Bank, KDDI (au), Key Bank, Lifestyle, Lotto, Maxx, McKinsey, MCX, MDM Bank, MobiKwik, Modest, Mothercare, NAB, Nets, Nike, NTT DOCOMO, Nykredit Bank, Oxigen, Payment Express, Payoneer, Paysafe, Paytm, Payvision, PBOC (People's Bank of China), PCI (Payment Card Industry), Pitney Bowes, Planet Payment, Pure Home, QQ, RBI (Reserve Bank of India), Reebok, Safaricom, Saxo Payments, Sberbank, Spar Nord Bank, Sports Station, Starbucks, Sunglass Hut, Sydbank, TalkTalk, Telcel, Telkomsel, Tencent, Tesco, The Body Shop, Tigo, TransferWise, UK Payments Strategy Forum, UnionPay, United Colors of Benetton, Venmo, VIVO, VocaLink, Wells Fargo, Western Union, Wirecard, World Bank, World Travel & Tourism Council, WyWallet, Xoom, Yespay, YouGov.
Table of Contents
1. The Age of Digital Payment
- 1.1 Introduction
- 1.2 From Analogue to Digital: The Evolution of Payments
- Figure 1.1: eRetail Snapshot, 2001 & 2016
- Figure 1.2: Global Retail Transaction Value, 2016, Split by Location/Device ($20.5 trillion)
- 1.2.1 Mobile Becoming an Option for Offline Payments
- Figure 1.3: Global Instore Payments Transaction Value, 2016, Split By Payment Mechanism, ($18.6 trillion)
- 1.2.2 The Rise in Digital Goods Sales
- Figure 1.4: Global Sales of Digital Goods & Services, 2016, Split By 8 Key Regions ($749 billion)
- 1.2.3 Money Transfer: MTOs Facing Pureplay Digital Challenge
- Figure 1.5: International Remittance Value, 2016, Split By Remittance Mechanism ($575 billion)
- 1.3 The Digital Payments Opportunity
- Figure & Table 1.6: Digital Payments Transaction Value ($m), Split By Payment Type, 2016-2021
2. Payment Cards & Networks: Strategic Assessment
- 2.1 Introduction: Payment Networks in Transition
- 2.2 Payment Cards: Market Overview
- Figure 2.1: Global Credit/Debit/ATM Cards in Issue, End 2016 (12.1 billion cards)
- 2.2.1 UnionPay: Strategic Approach
- 2.2.2 Visa & Mastercard: The Chinese Opportunity
- 2.3 Contactless Payments: EMVCo Approaches
- 2.3.1 EMVCo: Wallet Strategies
- Figure 2.2: Visa Checkout: Key Metrics, March 2017
- Figure 2.3: Masterpass: Key Metrics, May 2017
- i. Altematives to NFC: Addressing the Demand for QR Codes
- Figure & Table 2.4: QR Code-Based Wallet Users (m) Split by 8 Key Regions 2016-2021
- Figure 2.5: Key QR Metrics, Indian Subcontinent & Africa, 2021
- ii. Prepaid Cards
- 2.3.2 EMVCo: Tokenisation Strategies
- i. Beyond Mobile Payment: Tokenisation in the IoT
- Figure 2.6: Payment Capable Connected Devices, 2020 (8.8 billion)
- 2.4 Online Payments Networks: The Challenge of Fraud
- 2.4.1 3DS 2.0 (3D Secure 2.0)
- Figure 2.7: 3DS1.x vs 2.0
- 2.5 Strategic Recommendations for Payment Networks
- 2.5.5 Strategic Prioritisation Summary
- Figure 2.8: EMVCo Members Strategic Priorities Summary
3. Payment Service Providers: Strategic Assessment
- 3.1 Introduction
- 3.2 Key PSP Requirements
- 3.2.1 Simplifying Merchant Onboarding
- 3.2.2 Simplifying the Fee Structure
- 3.2.3 Addressing Fraud Risk
- Figure 3.1: Annual Remote Physical & Digital Goods Transactions (m) 2016-2021
- i. Fraud Chargebacks
- Figure 3.2: Country Level Fraud Chargeback Rates (%) 2015 & 2016 - Large Corporations
- 3.2.4 The Cross-Border Challenge
- i. Regulatory Analysis: SCT Inst
- ii. Technological Analysis: Blockchain
- Figure 3.3: Current Cross-Border Settlement Process
- Figure 3.4: Blockchain-based Cross-Border Settlement Process
- 3.2.5 Expanding Partnerships
- 3.2.6 Creating Retailer Choice
- Figure 3.5: Bitcoin Retail Market Snapshot
- i. Enabling the Ominichannel Experience
- 3.2.7 Challenge Assessment
- Figure 3.6: Juniper Challenge Assessment Matrix: Payment Service Providers
- 3.3 Vendor Analysis: Capability Assessment & Market Positioning
- Table 3.7: Stakeholder Assessment Criteria: Payment Service Providers
- 3.3.1 Vendor Analysis: Capability Assessment & Market
- Table 3.8: Juniper Leaderboard Scoring Matrix: Payment Service Provider Scoring
- Figure 3.9: Juniper Leaderboard for Payment Service Providers
- 3.3.2 Vendor Groupings
- i. Established Leaders
- ii. Leading Challengers
- 3.4 Strategic Recommendations for Payment Service Providers
- 3.4.7 Strategic Prioritisation Summary
- Figure 3.10: PSPs Strategic Priorities Summary
4. OTT & OEM Payment Providers: Strategic Assessment
- 4.1 Introduction
- 4.2 National Snapshots
- 4.2.1 Apple & the US Wallet Opportunity
- Figure 4.1: US Market Snapshot
- 4.2.2 China: The Leading mCommerce Hub
- i. Overview
- Figure 4.2: China Mobile Wallets Market Snapshot
- ii. Alipay vs Weixin Pay
- Figure 4.3: Evolution of Weixin/WeChat
- 4.2.3 India: Banking Liberalisation & Demonetisation
- Figure 4.4: India Market Snapshot
- i. Market Leader: Paytm
- Table 4.5: Selected Indian Mobile Wallet Adoption
- ii. Demonetisation
- iii. The Emergence of UPI
- iv. Future Prospects
- 4.3 The Rise of HCE: Beyond Android Pay
- Figure 4.6: Banks with Commercial HCE Deployments, by Region, End 2016
- Figure 4.7: PayPal One Touch Users (m), 2015-2016
- 4.4 Regulation: PSD2 Levels European Payments Playing Field
- i. SCA (Strong Customer Authentication)
- ii. Possible Expansion of Open Banking APIs
- 4.5 Challenge Assessment
- Figure 4.8: Juniper Challenge Assessment Matrix: OTT/OEM Wallets (Developed Markets)
- 4.6 Vendor Analysis: Juniper Leaderboard
- Figure 4.9: Stakeholder Assessment Criteria: OTT/OEM Payment Providers
- Figure 4.10: Juniper Leaderboard Scoring Matrix: OTT/OEM Payment Providers
- Figure 4.11: Juniper Leaderboard for OTT/OEM Payment Providers
- 4.7 Strategic Recommendations for OTT/OEM Payment Providers
- 4.7.7 Strategic Prioritisation Summary
- Figure 4.12: OTT/OEM Payment Provider Strategic Priorities Summary
5. Telco Payment Providers: Strategic Assessment
- 5.1 Introduction
- 5.2 Mobile Wallets
- 5.2.1 Money Transfer Services
- 5.2.2 Evolving the Inclusive Opportunity: Deploying Sophisticated Mobile Financial Services
- Figure 5.1: Mobile Money Deployments (as of October 2016)
- Figure 5.2: Phased Evolution of Mobile Money
- 5.2.3 The Revenue Opportunity: Monetising Mobile Money
- 5.2.4 Contactless Payments
- 5.3 Carrier Billing: Leveraging the Billing Relationship
- Table 5.3: Carrier Billing Availability by Selected Storefront, June 2017
- 5.3.1 Digital Goods Payments: The Telco Opportunity
- Figure 5.4: Operator Billed Content - 2021 Forecast Snapshot
- i. Challenge Assessment
- Figure 5.5: Juniper Challenge Assessment Matrix: Content Carrier Billing
- 5.3.2 From Digital to Physical Goods
- i. Scenario: 1-2% of eRetail Transactions in Strong Postpaid Markets Billed to Carrier Billing by 2021
- Figure 5.6: Figure 5.6: MNO Revenues from Carrier Billed eRetail, 2021, Split by 8 Key Regions ($571 million)
- Table 5.7: Stakeholder Assessment Criteria: Telco Payment Providers
- 5.4.2 Vendor Analysis: Capability Assessment & Market Positioning
- Table 5.8: Juniper Leaderboard Scoring Matrix: Telco Payment Providers
- i. Leaderboard Matrix Scoring Analysis
- Figure 5.9: Carrier Billing Availability, Selected Telcos, June 2017
- Figure 5.10: Telco Financial Product Range Comparison
- Figure 5.11: Juniper Leaderboard for Telco Payment Providers
- 5.4.3 Vendor Groupings
- i. Established leaders
- ii. Leading Challengers
- iii. Disruptors & Emulators
- 5.5 Strategic Recommendations for Telco Payment Providers
- Figure 5.12: MNOs, Selected Postpaid User Base (m), March 2017
- 5.5.4 Strategic Prioritisation Summary
- Figure 5.13: Telco Payment Provider Strategic Priorities Summary
6. Appendix: Leaderboard Limitations & Interpretations