Payment Strategy Industry

Payment strategy for the industry

An efficient payment strategy for the Industry 4.0 is crucial. The digitisation of the industry requires a change in mindset for the entire value chain in order to secure your own competitiveness and innovative strength. Thus, efficient payment processing for innovative business models and sales formats plays a central role in this.

Industrial clients, just like consumers, increasingly expect both intuitive and instantly completed, finalised payment processes (also see Instant Payment) – on a global basis. Accordingly, the demands of external as well as internal customers on the treasury’s range of services and thus on competitive solution. Fulfilment processes are rising sharply. Digital sales formats focus more on the use and less on the ownership of “capital equipment”. Thus, “pay-per-use” offers that charge for actual services provided in real time or for the consumption of goods are beginning to establish themselves in the industry. The next step will be the ability to process autonomous transactions.

 

Marketplaces as digital business models

The assessment and allocation of services and the corresponding payment raise questions about efficiency, the future depth of added value and a suitable organisational model of the treasury in the area of payment and settlement.

  • How can these payments be processed efficiently?
  • What possibilities for exchange exist? How are these to be evaluated with regard to the respective requirements?
  • Which advantages do wallet and distributed ledger technologies, for example, offer for this shift in interactions?
  • Which additional commercial services are to be mapped out in order to be able to ensure efficient processing?

For treasurers, areas of action in the future payment strategy in the industry primarily include to provide complementary services required for a successful market place, such as order management, billing & tax management, payment and accounting.

 

Which type of organisational model is suitable for your treasury?

Companies can choose between different organisational models for payment processing, depending on whether they want to offer central services as enablers only or also provide such services themselves. Depending on the strategic orientation, aspects such as the direct (internal) customer relationship with the operators of the business models, transparency and uniform (global) control of liquidity flows of digital business models or the realisation of synergies through uniform systems and settlement processes are in the focus. Depending on the depth of value creation to be adjusted in a strategically and economically sustainable manner, companies can choose between role models such as Payment facilitator or Payment Gateway.

 

Read our full whitepaper to learn more about efficient payment strategies for the industry and potential role models.

Programmable money – do we need a digital Euro?

Worldwide, several solutions for programmable money are currently being developed as an answer to the growth of digitization. Alongside private organisations such as Libra, approx. 80% of the central banks are currently working on their own concepts. The first pilots are already in progress. Most recently, the ECB announced that they are looking into a concept for a digital Euro in order to create a legally determined digital payment instrument as an equivalent to cash. The purpose is to accelerate cross-border financial transactions and reduce transaction costs.

Who would benefit from programmable money? Does programmable money actually provide an innovative leap? Does it add value and facilitate new opportunities and for who? What could be a feasible technological basis for programmable money?

We discussed – and visualised – these and other questions with payment experts during our virtual TC Business Workshop.

 

Will banks still act as intermediaries or will they become redundant?

Pressure from private players is steadily increasing due to the ongoing internationalisation which provides companies such as Facebook or Google with a considerable competitive advantage over banks and credit card companies. The ECB’s primary objective, just like that of other central banks, is to strengthen existing financial systems. Here, central banks have no direct contact to customers, and usually do not want to have any. The purpose is rather to provide additional alternatives to cash.

According to that, the bank’s role as intermediaries would be secured for the start. However, the question remains if other providers could occupy the role as an intermediary next to – or instead of – traditional commercial banks.

 

Does Europe need its own CBDC concept in order to remain independent in the long run?

As it is usually the case with innovations, the use and value is not foreseeable in this early stage of development. But it is safe to say that, if Europe is aiming to play a significant role in the payment transactions i the future, we require our own concepts to avoid being pushed into geopolitical dependency by other players.

 

Programmable Money – Everything you don’t understand about money, combined with everything you don’t understand about computers.
John Oliver, Last Week Tonight Show

 

TC Pizza to go – The toolbox for agile design thinking workshops

Team TC had a bakeoff! On today’s menu: TC Pizza to go!

A creative approach and a critical eye on existing solutions allows insights into our client‘s needs. With the help of agile methods, teams are enabled to work together interdisciplinary and thus secure relevant results, developed in an iterative process allowing solutions to be integrated in specific contexts.

Our TC Pizza to go was developed as a toolbox for running agile design thinking workshops. The box is small enough to be carried along, even on the plane, and is filled with „ingredients“ such as pens, post-its and prototype kits. Needless to say – it also includes comfort sweets for the participants.

Who should be invited to design thinking workshops? What is the difference between „topics“ and „insights“? What do I need to create the perfect atmosphere for participants? Answers to these and more questions can be found in the „menu“ with tips & tricks for the successful management of agile workshops.

We as TC regularly use design thinking as well as methods from lean start-up and business model design approaches. As part of our internal training and education concept we both test and teach suitable methodical tools with and to our team and regularly train the identification of customer requirements. The purpose of working with agile methods is to enable our team to think and act entrepreneurial. As a team, we are testing agile methods using specific industry use cases in order to develop ideas and make the transfer to client projects easier.

This way, we extend the space for new business models and focus our approach on the iterative development of suitable solutions.

Did we tease your taste buds? Order your pizza here!

Open Banking – Revolution or Evolution?

Regulation, new technological standards, increasing connections between industries and changing customer expectations require innovations in Payment and Banking. PSD 2 enables access for third party providers and thus facilitates open ecosystems. As a result, banks and other financial service providers lose their monopole over their customer and account data. This is how Open Banking is significantly transforming the financial industry. However, the bank’s asset in this development: the customer trusts „his“ bank. This is the best precondition for banks to position themselves as the provider of „Trusted Services“ and manage the customer identity in digital ecosystems.

But how? The focus should always be the customer experience. The better the user interface and general handling are designed, the more customers will like it – and use it. Open Banking is an opportunity for banks to increase the value for their customers through improved digital services and personalised offers, and, as a result, secure the customer interface – and ultimately save costs.

According to the motto „Those who see more make better decisions“, we visualised the discussion during our TC Business Workshop. Together with experts from the banking and payment industry, we explored what services and products banks can offer their private and business customers in future, and which business models emerge beyond payment.

We look forward to accompanying our clients in these turbulent times and support them in setting the right course.

Therefore: „Hoist the sails – and go!“

Read more in our Whitepaper API-Banking

Thede Consulting CH – Cooperation with Prospire

Thede Consulting CH and Prospire cooperate in their consulting strategy and become sparring partners in Switzerland in payment and transaction banking. TC CH and Prospire thus extend their respective competencies in corporate and product strategy, business development and innovation. With a focus on the areas payment, retail and corporate banking as well as loyalty, we will provide our clients with even more versatile support in future.

With our cooperation, we further extend our service offering and process knowledge and jointly combine our core competencies and expertise. This is specifically beneficial for our clients in payment transactions, retail, insurance and automotive. Those industries are currently facing numerous challenges and new competitors.

Focus on payment, retail, corporate banking and loyalty

„Digitalisation, regulations and internationalisation currently lead to a more complex and diversified business for our clients. Our cooperation with Prospire means that we can now accompany our clients along the entire value chain”, says Jens Hegeler from TC. „An in-depth national understanding combined with an international network in various industries is the basis for our joint consulting approach. This way, we can secure our client’s success with innovative business models”, adds his business partner Andre Standke.

Together with our sparrings-partner, we aim for a long-term and sustained cooperation.

More information on Prospire here.

Booking, Billing, Dunning

Customers have no interest in technologies. Instead, they are looking for a convenient and secure payment process. Carrier Billing – currently still a niche product – fulfils these criteria and has potential to gain importance due to the increasing growth of digital goods such as games and entertainment.

Carrier Billing has higher conversion rates than alternative online payment methods. A major advantage is that customers can pay without registration or authentication. This significantly simplifies the purchasing process and thus satisfies the customers´ desire for convenience.

Carrier Billing has higher conversion rates than alternative online payment methods. A major advantage is that customers can pay without registration or authentication. This significantly simplifies the purchasing process and thus satisfies the customers´ desire for convenience.

Payment Services Directive II (PSD II)

What’s the hurry? Just a few more months until January 2018, when payment service providers are obliged to comply with the new requirements stated by the Payment Services Directive II (PSD II).

This regulation aims to liberalise the market for payment services and create a unified legal framework for electronic (and mobile) payments.
This new level of regulation obliges all market players to implement technical changes regarding authentication and transaction processes, which we will outline in this whitepaper.

For some, the new regulation poses a hassle. However, we consider it an opportunity to renew and develop business models along with product and service innovations.

The PSD II requires that account servicing payment service provider add interfaces to their account systems in order to share transactional data with eligible third parties. Consequently, banks have to provide access to their core banking infrastructure for
third-party service providers and ultimately face the risk that these may build their own customer relationship, generate customer insights and monetise this valuable data. Furthermore, financial institutions are required to set up new, more secure authentication systems and processes in order to ensure that transactions are protected through additional security features.

The necessity to implement PSD II seems to threaten established financial service providers considerably compared to the more agile Fintechs.
However, banks can just as well expand their innovation capabilities and develop strategies and business models in order to participate in the digital transformation, based on their existing customer relationships.

“To this day, far from all affected players have started,
although – apart from the legal obligation – regulations open up a chance to check their current business model for its future viability and proactively implement innovations in the payment market. For traditional institutions, the goal should be to remain the reliable partner for the customer and face new competitors with their own innovative products and services.“

Andre Standke

 

 

 

 

 

“There is no inevitable reason to be afraid of Fintechs as these only provide very specific payment products. At the end of the day, it is up to the customer to decide about his preferred gateway. However, banking institutions have to make themselves digitally accessible.

First market initiatives show, how market suppliers apply digitalisation in order to customise their processes, user interfaces or own products to the new customer requirements or cooperate with Fintechs in order to increase their own service portfolio for the customer.”

Jens Hegeler

 

 

Which requirements do financial service providers have to be prepared for?
To which extent are current business models placed in jeopardy?
What are the new revenue sources that come along with the legal changes to establish solid business models for the future?

We support you with the implementation of the legal and technical requirements stipulated by the PSD II, including an analysis of existing processes and matching those with new requirements. No matter where you are in the digital game, together with you we will verify your compatibility of your own innovation capability for a sustainable and future-proof business model.

Instant Payment

Immer und überall verfügbar, sicher und schnell – Instant Payment (IP) hat das Potenzial, sich langfristig als Bezahlstandard zu etablieren.

Finanzdienstleister können mit IP das Bezahlen von Morgen gestalten, allerdings bieten die regulatorischen Veränderungen durch PSD 2 auch Drittanbietern die Chance, eigene Lösungen anzubieten. Der Handel ist an einer schnellen Umsetzung interessiert, um Kostenvorteile und verbesserte Zahlungssicherheit zu realisieren und wartet nun darauf, dass Banken einheitliche (und günstige) Lösungen schaffen.

 

 

Instant Payment ist bequem, schnell und Multichannel-fähig und hat das Potenzial, substanziellen Marktanteil zu erlangen. Händlerbedürfnisse werden bedient, da IP die Transaktions- und Risikokosten senken kann und das Geld sofort verfügbar ist. Allerdings nur, wenn auch die Rückabwicklung von Transaktionen befriedigend gelöst ist. Der Vorteil besteht vor allem bei digitalen Gütern von Bedeutung, da hier die Zahlung im selben Moment wie die Nutzung erfolgen kann.

IP unterstützt und optimiert u.a. Payment zwischen Privatpersonen und Unternehmen. Für den Kunden verbessert IP mit einer Transaktionsverarbeitung von maximal 10 Sekunden die Customer Journey. Durch die Nutzung von Transaktionsdaten ermöglicht IP zusätzlichen Kundennutzen durch Cross-Selling. Besonders hohes Marktpotenzial und ein homogenes Umfeld sprechen für im IP im B2B Bereich. Unternehmen erzielen u.a. Optimierungspotenziale im Liquiditätsmanagement und profitieren von bedarfssynchroner Lieferung, Verarbeitung und Bezahlung.

Im Handel kann IP aber nur erfolgreich sein, wenn der Händler auch „Instant Communication“ beherrscht. Der Kunde erwartet heute, geprägt durch Zahlverfahren wie PayPal, dass er umgehend über seine Transaktionen informiert wird – auch unabhängig davon, ob das Geld direkt oder später abgebucht wird.

Banken haben durch IP die Chance, wieder ganzheitlich in den Mittelpunkt der Bezahlung zu rücken, müssen dafür ihr Leistungsangebot aber attraktiv und wettbewerbsfähig ausbauen, um disruptiven Angeboten von Drittanbietern eigene Lösungen entgegenzusetzen. Für die langfristige Durchsetzung am Markt sind einheitliche Bezahlstandards nötig, so dass kein fragmentierter Markt mit Einzellösungen von Handel, Banken und Drittanbietern entsteht. Der Kunde wird kein Interesse daran haben, bei jedem Einkauf ein individuelles Zahlverfahren zu nutzen.

Die TC Infografik „Instant Payment“ zeigt auf, für welche Use Cases IP geeignet ist und welches Marktpotenzial sich in einzelnen Anwendungsbereichen ergibt. Win-Win-Situationen ergeben sich durch Kooperationen zwischen Händlern und Finanzdienstleistern. Die vorhandene Infrastruktur muss auf IP umgestellt werden, um an den Vorteilen des neuen Marktstandards frühzeitig zu partizipieren. Parallel können zusätzliche Ertragsquellen z.B. durch die Stärkung und Ausweitung der digitalen Produktpalette generiert werden.

 

Egal ob First Mover oder Follower – nur nicht zu handeln ist keine Option

Wir erarbeiten gemeinsam mit unseren Kunden in individuellen Workshops vom Prototyping bis hin zur Implementierung marktfähige Bezahllösungen und begleiten Finanzdienstleister und Händler bei der Umsetzung. Kontaktieren Sie uns.

Smart Payment at POS

Möchte der Kunde Bargeld wirklich abschaffen? 
Lässt sich Bezahlverhalten mit neuen Technologien und Regulierung verändern?
Wie bieten Händler ihren Kunden ein optimiertes Einkaufserlebnis? 
Wie lernen sie den Kunden besser kennen? 

Die TREND-REPORT-Re­daktion beschreibt im „Handbuch Handel mit Zukunft“ die Transformation der Branche im digitalen Zeitalter und stellt dabei die Veränderung der Customer-Experience-Journey in den Mittelpunkt. Die Digitalisie­rung eröffnet neue Möglichkeiten wie Smart-Services und digitale Ökosysteme, die den Handel vor große Herausforderungen stellen.

Grundsätzlich gilt für Händler, dass sie ihre Strategie am Kunden ausrichten müssen, wobei die zunehmende Automatisierung zusehends das Konsumverhalten und die Erwartungen verändert.

Als Gastautor beschäftigen wir uns im Kapitel 4.3 „Smart Payment mit dem Mehr an Kundenservice“ (Seite 199). Im Mittelpunkt steht die Frage, ob „Smart“ auch gleichzeitig bedeutet, dass es besser für den Kunden ist.

 

 

Sicher ist: Payment ist Service-Sache!

Payment ist nur ein Baustein im Einkaufserlebnis. Smarte Händler kennen ihren Kunden so gut, dass sie wissen, was er sich wünscht. Smarte Händler haben Prozesse – inkl. Bezahlprozesse – etabliert, um dem Kunden diese Wünsche zu erfüllen.

 

Anforderungen an smarte Bezahlverfahren

  • Bequemlichkeit in Form eines nahtlosen Einkaufserlebnisses
  • Transparenz durch die zentrale Schnittstelle von Einkäufen und Finanzen
  • Kontrolle durch individuelle Freigaben für bekannte Händler
  • Vertrauen durch sensiblen Umgang mit Daten
  • Sicherheit durch biometrische Authentifizierung

Plattformen verändern mit neuen Technologien unsere Art des Bezahlens – unsichtbar, bargeldlos und per digitaler Identität. Die Integration weiterer Payment-naher Schritte wie Garantien, Gutscheine oder Ratenzahlungen schafft so neue Erlösquellen und die Möglichkeit, den Kunden langfristig an sich zu binden und langfristig die Kundenschnittstelle zu beherrschen.

Lesen Sie den ganzen Artikel: Handbuch Handel – Smart Payment – Dr Thede Consulting

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Laden Sie sich das Handbuch kostenlos herunter: Handbuch Handel mit Zukunft

Google Pay – A (Wallet) for everybody

Google scheint die Formel des perfekten Bezahlverfahrens zu kennen: einfach, nahtlos, schnell und möglichst unauffällig. Der Claim: Mit Google Pay kann jeder überall immer mit jedem Gerät alles bezahlen.

Der Nachfolger, bzw. die modernisierte Kombination von Android Pay und Google Wallet, ist mit Millionen von Google-Kunden auf die breite Masse ausgelegt und bietet ein fast unsichtbares, digitales und kanalübergreifend einheitliches Zahlungserlebnis.
Ein Manko: in Deutschland ist es nicht verfügbar. Noch nicht.

Google Pay setzt mit einer Multichannel-Verfügbarkeit einen Standard für Bezahllösungen. Die Anbindung von Händlern ist einfach, die Nutzung kostenlos, das Einkaufserlebnis für die Kunden kanalübergreifend einheitlich. Hat Google Pay damit das Potenzial, den Zahlungsverkehrsmarkt drastisch zu verändern? Welchen Einfluss hat Google Pay auf den Handel und die aktuellen Player im Zahlungsverkehrsmarkt?

Wir haben uns Gedanken zu Google Pay gemacht und unsere Einschätzung in unserem aktuellen Whitepaper zusammengefasst. Gerne diskutieren wir mit Ihnen darüber, was es für Sie und Ihr Unternehmen bedeutet, wenn Google Pay im deutschen Markt startet.