The report details the array of new ways to pay merchants and peers, and examines how the concept of currency is evolving as bitcoin and other new forms of value exchange gain steam. It also includes results of a quantitative survey of consumer attitudes conducted in the U.S. and U.K.
“All friction is being removed from payments so that we’ll almost make transactions without realizing it. We’ll also move beyond contactless mobile payments to paying with our bodies—our iris, our thumbprint, etc.,” says Lucie Greene, worldwide director of JWTIntelligence. “Our whole idea of value, exchange and currency is being disrupted with new systems that trade in trust, social currency and other commodities. People are finding new ways to trade, and brands are enabling this by creating alternative payment and currency systems.”
“The Future of Payments & Currency” covers several broad trends:
New Ways to Pay
Digital technology is opening up new ways to pay, many of them more seamless and secure than traditional methods. Foremost among these is the mobile wallet, but other ideas coming to fruition include wearables (tapping a watch, scanning a ring, etc.), biometric solutions like pay-by-fingerprint, and simple texts or tweets.
New Forms of Value Exchange
Alternative currencies—ranging from cryptocurrencies to local currencies, branded currency and social media currency—are supplementing or even replacing conventional money. Consumers are paying with bitcoin or tweets, and getting paid in mobile airtime.
New Payment Players
Disruption in the payments and currency sphere is opening the way for new players to act as intermediaries between consumers and their money. We’ll see consumer interaction with banks and other traditional financial institutions wane as newcomers offer innovative or compelling solutions.
The report also outlines what’s driving these changes. “The case against cash and physical cards is getting stronger, with Millennials already moving away from the status quo and adopting some alternative ideas,” says trends strategist Nick Ayala, author of the report. JWT’s survey found that Millennials are significantly more likely than other generations to express interest in mobile payments and to agree that “With today’s technology, it doesn’t make sense that we mostly still rely on cash, debit and credit cards to pay for things.”
View the report on Slideshare below and here.