Innovation & Mobile Payments: A 3-Part Revolution

22.11.2013

In an age characterised by constant change in technologies and user behaviour, BNP Paribas' innovation strategy is centred on the daily needs of individual customers and companies alike.

Through its proximity to its clients, international presence and solid experience in developing new methods of payment, the Group positions itself within the “innovation revolution” by developing new payment solutions: from the e-wallet and peer-to-peer payments to mobile acquiring.

Today, this revolution can be broken down into three major parts: changes in consumer behaviour, the rapid development of new technology, and the multiplication of market players.

The revolution in consumer behaviour

When making a purchase, customers expect impeccable service. But service alone is no longer enough:they want choice, attractive prices, value-added services and more. The concept of mobility has profoundly and permanently changed consumers' purchasing behaviour. The shopping experience must also be as easy as possible in order to keep internet shoppers interested: 61% of online buyers have abandoned a purchase during the checkout process (Source: Javelin Strategy & Research, 2011).

Does that mean we really no longer need any assistance once we have a smartphone? On the contrary: in an increasingly disintermediated world, where virtual relationships are the norm, consumers miss the sense of emotional closeness and use social networks to interact. 77% of European Internet shoppers consult recommendations from other customers before purchasing. And finally, the essential component of every financial transaction: security. 33% of customers do not feel secure enough to make payments over the Internet (FIFG 2013).

>> For daily updates on the rapidly changing landscape of user behaviour, visit L'Atelier BNP Paribas, the tracking and analysis centre for disruptive innovation for the BNP Paribas Group.

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The revolution in technology

A number of technological developments are revolutionising our way of life, from smartphones and the cloud to 3D printers. These same technologies are also having a considerable impact on the payments industry. Contactless payments facilitate and simplify transactions, while 3G/4G and fibre optics make fast, lower-cost communications possible.

All this must be made possible with the guarantee of optimal security.

The revolution in market players

New players are constantly vying for a position in the value chain. The profiles of these new entrants are diverse: Internet giants, major retailers and start-ups are scrambling to create a place for themselves alongside the banks.

Nevertheless, it appears that the banks have a key role to play in this field. As market players in which consumers already have considerable confidence, they can offer not only payment services but also additional value-added services (credit, budget management, etc.). They know their customers: individuals or merchants. In addition, they often have an international dimension and a strong capacity for investment, and can therefore roll out a range of different solutions.

Since the launch of Hello bank! in May, BNP Paribas has continued to develop ways to simplify and secure consumers' shopping experience by offering the most secure and appropriate solutions for their new digital behaviour. It is doing so on a Europe-wide scale and is offering support to customers, entrepreneurs and merchants alike, in particular by supporting merchants in adopting new sales behaviours.

Watch “Nina's Day: A New Shopping Experience” on the BNP Paribas youtube channel to see how new payment solutions simplify daily life.

Download the press kit (many elements in French only)