Winning the next round in the game for electronic wallets
Positioning for a new financial landscape
As institutions begin to emerge from the financial crisis and global economic downturn, their strategists are thoughts are turning towards preparations for the recovery.
They are reconfiguring their business models to suit new levels of the financial landscape, realigning their workforces to meet the new level of demand, and rebuilding customer relationships that have been unsettled during the crisis. There is also urgency in these efforts, as institutions recognize that these preparations must be finished before the recovery is complete if they are to make the most of the opportunities to come.
One area of opportunity is in the fast-growing online payments market. In the past few years there has been increased competition between banks and e-commerce platforms to provide fundamental commerce services to consumers. The e-commerce platforms, which introduced electronic wallets, tripled their share of U.S. online payments from 2002-2007 while traditional payment companies incurred losses. The new financial landscape provides an opportunity for traditional payment companies to fight back and enhance their relevance in the eyes of the customer. This Deloitte report discusses trends and challenges in the online payment industry and suggests ways financial institutions can gain a competitive advantage.
Read the full report.