Payments

Cashless Future?

MEDICIFounder and Chief Strategy & Innovation Officer

One of the things that I expect to happen in payments is that there would not be only one method of payments that will win. It will not be only new technologies but a coexistence of both the New and the old worlds.

Reason 1 - Cash cannot be taken out of the system. It is very difficult to take it out from certain types of payments how much ever risky or in efficient it might be.

Salient points:

  • It is the most widely used payment instrument for retail transactions and it is the most important contingency payment instrument.
  • It is considered the cheapest instrument for small retail payments – the average overall cost per transaction for small payments is lower for cash than for comparable electronic payment instruments.
  • It is “inclusive”: people who have no bank accounts or limited access to them or who are unable to use electronic forms of payment can still make payments; while studies are going on, it’s hard to determine whether electronic payments are more secure in terms of fraud / counterfeiting resistance?

Reason 2 - Retailers and merchants are not convinced about every new payment method and technologies. A lot of them are asking whether we need to deploy a EMV card terminal or a NFC terminal or a mobile card reader or something for contactless cards. One May not be the answer, certainly not in the near future. Many or all seems to be the way.

E.g., Ingenico a leading worldwide provider of payment solutions, announced recently that CenPOS, a merchant-centric end-to-end payment gateway, has integrated Ingenico’s iSC250 multi-lane device to its secure cloud-based payment platform. This partnership empowers automotive dealerships and other specialty merchants nationwide to streamline their payment acceptance across various methods of payments.

CenPOS’ intelligent payment platform works with and drives the customer-facing Ingenico Telium devices.

The combined system provides a positive experience at checkout by offering the convenience to pay with any form of payment, including EMV chip card, contactless, and NFC-enabled mobile devices. CenPOS also integrated the iSC250 devices to support their End-to-End Encryption (E2E) security solution, helping automotive dealerships reduce the cost and complexity involved in being PCI compliant.

LTP View: Expecting to go completely cashless in a decade or so may not be realistic. What is realistic is coexistence. Coexistence of both cash and cashless payments. Its just that the usage of cashless payments will go up but the traditionalists will still stick t0 cash based payments. At LTP we believe that multi-channel is the future. Lot of systems will co-exists along with cash. Companies like Adyen who offers Shuttle, advanced multichannel payment solution to a broader range of customers have a good opportunity at hand.

Amit Goel

MEDICIFounder and Chief Strategy & Innovation Officer

“Amit Goel is the Founder & Chief Strategy & Innovation Officer for MEDICI. Amit’s vision is to build a strong FinTech market network that involves financial institutions, banks, startups, investors, analysts & other key stakeholders across the ecosystem – helping each one of them in a meaningful way by removing the asymmetry of information and providing a platform to engage & transact.\ \ Amit is passionate about bringing actionable FinTech-focused insights, innovative products & services for the FinTech ecosystem. Some of his work involves startup scores, bank scores/assessments, predictive viewpoints & other innovations that have helped MEDICI’s customers and the ecosystem. He has been named amongst the Top 100 FinTech thought leaders/influencers in the world & Top 10 in Asia multiple times by reputed agencies, consulting firms as well as financial institutions. Amit has built MEDICI (formerly LTP) as a new-age, tech-enabled advisory/research firm, which is now considered the #1 global research & innovation platform for FinTech in the world.\ \ Amit has been writing pioneering viewpoints on financial technology space that have been ahead of the curve since 2010. His data-driven predictions have helped the customers as well as the ecosystem. His past work experience includes a strong background in strategy & market analysis and advisory to clients (from big business houses to Fortune 500 firms) in payments, commerce, financial services & IT/technology. In the past, Amit had also founded a successful consulting & research practice called GrowthPraxis and has worked at Boston Analytics, Frost & Sullivan, and Daimler Chrysler in strategy & research.”