New Uncertainties May Alter the Trajectory of Disruption in Payments

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Leading payments research and consulting firm, Mercator Advisory Group, offers complimentary outlook on trends shaping the payments industry in 2017.

Last year, “disruption” was the watchword in payments—primarily the fintech variety. This year disruption by fintech firms might well be joined by regulatory uncertainty, which could be more disruptive than either regulatory or deregulatory certainty.

Fintech has been labeled the great disrupter of payments, and it is very much a force to be reckoned with. But could the emerging environment of regulatory uncertainty disrupt the great disrupter in 2017? Mercator Advisory Group’s latest research note, 2017 Payments Outlook, summarizes the 2017 Outlook forecasts available from six of Mercator’s research practices—the Credit, Debit, Prepaid, Customer Interaction, Commercial and Enterprise Payments, and Emerging Technologies Advisory Services—as well as the forecast for Merchant Services. The Outlooks highlight the sweep of changes Mercator anticipates for the volatile year ahead as well as the technology trends that will drive change beyond the 2017 horizon.

“Last year, “disruption” was the watchword in payments—primarily the fintech variety. This year disruption by financial technology (fintech) firms might well be joined by regulatory uncertainty, which could be more disruptive than either regulatory or deregulatory certainty,” comments Ken Paterson, Mercator Advisory Group’s VP of Research Operations and author of this overview Outlook for 2016.

Download this and all of Mercator Advisory Group’s 2016 Payments Outlooks.

The 2017 Payments Outlook summarizes the major themes from Mercator’s advisory services, themes that include:

  •     The particular vulnerability of the prepaid segment to regulatory gridlock
  •     Major product and transaction routing changes that magnify the regulatory uncertainties for debit
  •     Positive business outlook for credit cards, albeit with some growing profitability challenges
  •     Increasing interest for fintech solutions within commercial payments—as well as growing fraud risks
  •     The emerging role of financial institutions as application platforms
  •     The immediate need for payments stakeholders to embrace tokenization, machine learning applications, and application programming interface (API)-based architecture
  •     The rising competitive tide of mobile loyalty apps among merchants

The free 2017 Payments Outlook is the last in a series of eight Outlook notes by Mercator Advisory Group that provide insights into trends and new themes on the horizon that will have a significant impact on the payments and banking industry, consumers, and the ways companies do business in 2017 and beyond. The subjects of these Outlooks set the foundation for Mercator Advisory Group’s research agenda for the coming year and provide a framework for key points of engagement that Mercator Advisory Group will have with its clients in 2017.

The Outlooks for 2017 are presented by each of Mercator Advisory Group’s Advisory Services—Credit (including Merchant Services), Debit, Prepaid, Customer Interaction, Commercial and Enterprise Payments, and Emerging Technologies—and can be downloaded without charge.

Companies mentioned in this document include: Amazon, Apple, Chase, Citi, CVS, Disney, Dunkin’ Donuts, Early Warning, Facebook, Ford, Google, IBM, Kohl’s, Macy’s, MasterCard, Microsoft, PayPal, Rite Aid, Samsung, Starbucks, Tesla, USAA, Visa, Walmart, and Wells Fargo.

For more information and media inquiries, please call Mercator Advisory Group's main line, (781) 419-1700, or send email to media[at]mercatoradvisorygroup[dot]com.

For free industry news, opinions, research, company information and more visit us at http://www.PaymentsJournal.com.

Follow us on Twitter @ http://twitter.com/MercatorAdvisor.

About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.

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Karen Yetter
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