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Table of Contents

IDC FutureScape Figure

Figure: IDC FutureScape: Worldwide Payments 2018 Top 10 Predictions

Executive Summary

IDC FutureScape Predictions

Summary of External Drivers

Predictions: Impact on Technology Buyers

Prediction 1: In 2018, Financial Institutions Will Allocate $6 Billion to Internal Resources to Handle Transforming Their Payment Systems

Associated Drivers

IT Impact

Guidance

Prediction 2: In 2019, P2P Transactions Worth a Total of $6.0 Trillion Will Be Made Worldwide Using Mobile Devices

Associated Drivers

IT Impact

Business Impact

Guidance

Prediction 3: DLT-Based Networks Will Be Launched Within the Next 24 Months in 25% of Global Transaction Banks — in Particular, to Facilitate KYC, Accelerate Supply Chain Finance, and Drive SME Lending — But Blockchain Payment Systems Will Not Be a Priority Area

Associated Drivers

IT Impact

Business Impact

Guidance

Prediction 4: In 2018, More than $150 Billion Will Be Spent Through IoT and Connected Devices

Associated Drivers

IT Impact

Guidance

Prediction 5: By 2021, 75% of Enterprise Point-of-Sale Vendors Will Have Begun Significantly Re-Architecting Their Solutions to Meet Rising Expectations for Current Omni-Channel Capabilities and Customer Experience Expectations

Associated Drivers

IT Impact

Guidance

Prediction 6: Despite the Lack of an Equivalent Regulation to PSD2, by 2021, 90% of Non-European Banks Will Have Moved in a Similar Direction to European Banks in Terms of Sharing Data via APIs, But They Will Have Done So for Competitive Reasons Rather Than Regulatory Ones

Associated Drivers

IT Impact

Business Impact

Guidance

Prediction 7: Corporate Banks Will Invest 15–20% More in Big Data/Analytics in 2018 than in 2017 — $2.2 Billion in Total — in Their Efforts to Move from a Transactional to a Data-as-a-Service Business Model, Offering Real-Time and Predictive Analytics on Fraud, Compliance, and Scenario Modeling

Associated Drivers

IT Impact

Business Impact

Guidance

Prediction 8: By 2019, 70% of Standalone Mobile Payment Players Globally Will No Longer Exist in Their Current Form; Through Natural Evolution, Mergers, and Acquisitions, Mobile Payment Players That Are Showing Promise Today Will Have Transformed into Full-Fledged Financial Services Ecosystems

Associated Drivers

IT Impact

Guidance

Prediction 9: By 2021, All Major Payment Service Providers Will Interact with Digital Identity Marketplaces Used by Consumers and Businesses to Self-Govern Private Data Sharing and Use, Allowing Data to Be Uploaded for Payment Companies to Access via a Subscription Model

Associated Drivers

IT Impact

Guidance

Prediction 10: In 2020, 25% of Card-Issuing Banks Will Use Micro-Location for Enhanced Security Through a Combination of NFC and Beacons to Satisfy Mutlifactor Requirements to Secure Payments, Such as at POS and P2B

Associated Drivers

IT Impact

Business Impact

Guidance

Advice for Technology Buyers

External Drivers: Detail

Pace of Change: Technology Capabilities Enable Sustainable Change at the Speed of Digital Business

Platform Disruption: Unleashing Digital Innovation's Power of Scale

Accelerating DX: Technology-Centric Transformation Altering Business and Society

Innovation Impasse: Legacy Systems Constraining Transformation

New Nature of Risk: Innovation to Defend Against Bad Actors and Comply with Increasing Regulatory Compliance

Human Versus Machine: The Impact of AI and Automation

The Future Workforce: Global Demand for Digital Talent

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