The revised Payment Services Directive (PSD2) is all set to usher in the era of AISPs (Account Information Service Providers) and PISPs (Payment Initiation Service Providers). Contenders like traditional banks retailers, social media networks, telecommunication companies and Fintech organisations are already set to grab a slice of this nascent market. But, how comfortable are consumers about disclosing bank account access details to third parties? The Accenture UK and Ireland survey—in partnership with the University College Dublin (UCD) Marketing Development Programme—revealed some key insights into the potential uptake of PISP and AISP services.
The survey showed that more than 50 percent of consumers will use a PISP product that is secure and offers extensive retail options. According to the survey, one in three debit card payments and one in 10 credit card payments are expected to move to PISP by 2020. Seventy-six percent of consumers are likely to choose traditional banks as their PISP over third-party PISPs.
Similarly, trusted brands will dominate the AISP market by offering tailored finance products and money-saving opportunities. Seventy percent of the consumers shared that they will trust banks as AISPs over third-party providers. The survey showed that 18-24-year olds are more likely to choose AISP services as compared to their elder counterparts (55-64-year olds). With banks and retailers set to get a head-start as PISPs and AISPs, security concerns need to be addressed to achieve consumer acceptance.
Key findings from the survey on PISPs and AISPs:
Traditional banks and etailers will get a head-start.
Trusted social media companies (Facebook, Twitter, LinkedIn) and tech companies (Google, Apple) will capture a significant slice of the market.
Security is a critical factor in adoption with 94 percent of consumers expecting new payment services to be as secure as their existing payment methods.
Services like Personal Finance Management will make the AISP offering very attractive.
Large merchants and the partnerships they forge will be key in the adoption of PISP services.
Four strategies future AISPs and PISPs can employ to stay ahead in the game:
Innovate to meet evolving consumer expectations: Third-party market players considering a PISP-based proposition will need to launch cutting-edge products to meet consumer expectations.
Expand product offering to compete with banks: Third-party AISPs and PISPs—social media companies, retails and Fintech organisations—will need to form strategic alliances to offer extensive retail and financial products on the same platform.
Formulate simple data-sharing strategies: AISPs will need to formulate comprehensive and robust data-sharing practices that are easily and clearly understood by consumers.
Address security risks: Banks and etailers will need to capitalise on the head-start by delivering secure transactions and a superior customer experience.