Banks around the world are set to significantly increase spending on new payment technology in 2016, according to a new report from technology research firm Ovum.
Driven by an increased emphasis on security, changing consumer behavior and new technologies such as Blockchain, mobile payments and real-time payment transactions, nearly two in three banks (61%) globally will increase their spending on payment technology next year, the firm says.
This is up sharply from 2015, when just over half of banks (52%) increased their IT expenditure on payment technology. Ovum says the major shift is representative of the “transformative levels of change” happening in the payments market.
“Investment levels in payments have been high in recent years, driven by the need to deploy new payment services, cope with the overall rise in electronic transaction volumes, and replace aging legacy infrastructure,” Gilles Ubaghs, senior analyst on Ovum’s Financial Services Technology team, said in a statement.
The report, “2016 Trends to Watch: Payments,” surveyed CIOs and other senior IT decision-makers in more than 60 countries. Banks’ increasing investment in payment technology is aided by growing concerns over security and the need for regulatory compliance, with more than 70% of retail banks reporting a rise in expenditure on security and anti-fraud technologies.
The focus on security isn’t surprising, the report says, given the need for top-notch data protection across the new payment tools and services now emerging.
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