The complexity and prohibitively high cost of most new electronic payment systems have delayed massive deployments and generated negative perceptions among customers, according to a new report from Frost & Sullivan. As a result of this, vendors in the market are looking to cloud-based solutions to reduce the costs associated with communication, hosting and access to the service or software, the firm says.
“By aligning innovative payment technologies, particularly those based on mobile usage and new mobility trends, to industry requirements, the financial services industry can reduce total investments,” Jean Noel Georges, Frost & Sullivan Information and Communication Technologies global program director, said in a statement.
“Ultimately, this is a win-win approach, where the financial institution can minimize its spending on client account management while adopting a payment technology that facilitates mobile banking and associated services,” Georges said.
Still, the complexity involved in ensuring that various electronic payment systems from different vendors are interoperable, ultra secure, and certified has prevented product introductions, according to the report, “How Cloud-Based Payment Could Impact the Payment Ecosystem.”
The development of technologies such as mobile payment and mobile wallet has included entrants such as mobile network operators, adding to the complexity of the payment ecosystem, Frost & Sullivan says. Cloud-based payment services present an interesting option to overpass the market congestion.
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