Trésorier/Treasurer magazine - N°86 - Jul/Aug/Sep 2014 - (Page 12)
TREASURERS OF THE FUTURE
WILL HAVE TO DEAL WITH NEW
E-PAYMENT METHODS
In a constantly changing world, we need to adapt continuously and always look ahead. «Business models» are
changing, with the result that many businesses are moving to B2C, with all the consequences that this brings in
terms of payment habits. Targeting a young public means opting for new and modern ways of paying. The dividing
line between banks and «e-industry» is very fine. New Internet giants are appearing on the banking market
and plan to compete with banks in certain domains, including payments and loans. A new industrial revolution is
underway. However, technology is evolving quicker than regulations. Surely financiers need to be prepared to take
this new state of affairs on board in their approach to payments?
LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE
-
N°86
- JUL
/ AUG / SEP 2014
In a changing world, new competitors are emerging on the payment
methods front
12
The world is changing extremely fast,
particularly as a result of the recent huge
strides in technology. The «business model» of many companies has also shifted
towards B2C in parallel with it. A consequence of this fundamental transformation is that companies have to collect
funds (i.e. incoming payments) using
new payment methods (i.e. e-payments).
They need to embrace these diverse and
varied payment methods if they are to the
collect funds due to this business transformation and make their new operating
models viable in the long-term. The difficulty often derives from the high volume
of receipt transactions and their low, or
even tiny, value. This throws costs and
other expenses into sharp relief. These
new niches are encouraging many service
providers, (such as banks, e-traders,
software houses, technology companies,
search engines, etc..) to develop and offer
alternative solutions, which are genuine
competition for traditional banks. Some
new entities even have banking licences,
enabling them to carry out transactions
which the banks themselves have always
tried to shield from competition. Without
having the same regulatory and financial
constraints, with shorter response times
and the capacity to develop appropriate
IT solutions very fast, these new players
are on a course, in time, to gobble up
the online payment market. A war has
broken out. No one knows who will win
it. We cannot say whether the banks will
try to adapt their own business model,
or whether e-business companies will
diversify into neutral ground. But it is
absolutely certain that the fighting will
be fierce, and that there will be bodies
lying by the wayside. The new arrivals will obviously have immeasurable
advantages compared to banks - cost
structure, speed of response, technology and developers, fewer regulatory
restrictions, huge liquidity, etc. Furthermore, e-business companies could,
and know how to, make the fullest use
of customer information (i.e. bog data)
to profile them, target them and finally
«hook them», like a skilful angler. These
electronic payment solutions exist or
are being brought into existence as we
speak. For them, too, size and scale will
be crucial in building a business that will
last. Security, interfacing, flexibility and
price will be the key challenges to be
overcome to be able to attract new users.
The survival of e-payment companies
will come at a high price. This does not/
no longer scares technology companies,
which are awash with cash. The portability and mobility of payment devices and
methods will be crucial advantages to be
capitalised on in attracting new people to
sign up. Can treasurers decide they don't
need to bother about this development,
this genuine tsunami and market trend?
These new «e-companies» will provide
access and solutions, because their very
survival depends upon it.
Multiple players
There is a profusion of players: there are
the banks which are trying to become
more «virtual», the Internet giants
always ready to swoop and the trading
companies themselves which may wish
to grasp opportunities or find solutions to
problems themselves, without needing
to rely on others. For example, Monoprix (French retailer) announced that
it would be agreeable to adopting the
Bitcoin from 2015. Major retailers will
certainly take an interest in these new
virtual currencies. Since technology is
evolving faster than the economic and
regulatory environment, you need to
be able to adjust to make sure that you
don't miss the bandwagon. Company
diversification is a way of protecting your
business and a strategy. The ICT revolution is underway. People are changing
their consumption habits. The world
itself, perhaps, is not changing; it is,
rather, undergoing a transformation. The
plethora of companies ready to pounce
on these e-payments makes it even
harder to decide on the best approach.
Today we see the arrival of Alibaba, iPay,
Monitise, PayPal, Discover, TrueMoney, (the list is long) - full of ambitious
projects. You need to choose carefully
and decide on your strategy, faced with
the arrival of so many players. You need
to think prepayment, payment now and
payment later, which are the three main
forms. Alternative payment methods
are proliferating. They come in various
forms. The «e-wallet» concept has made
Table des matières de la publication Trésorier/Treasurer magazine - N°86 - Jul/Aug/Sep 2014
Couverture
SOMMAIRE
EDITORIAL
FINANCIAL HIGHLIGHTS Luxembourg Tax News
INTERVIEW David Holland
FOCUS
FORUM
CORPORATE FINANCE
15 MINUTES WITH INTIX
THE FINANCIAL RISK OBSERVATORY
NEWS
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