THE FUTURE OF GLOBAL PAYMENTS: 2015-2020 We invite participation in a unique program to provide business leaders with a robust, quantified perspective on how consumer demand for payment systems will shift over the next 5 years, and an understanding of what it will mean for them and their businesses.
Each year, the world s consumers engage in billions of transactions, and payment systems lie at the heart of every one. We are currently at an inflection point, where recent technological advances have enabled myriad possibilities for payment innovations. Still, there is an unmet need for a robust, quantified perspective on how global consumer demand for payment systems will shift over the next several years, and the role that consumer needs and desires will play. This research program will provide specific, actionable answers and understanding on the most pressing questions on this set of topics for business leaders, and a perspective on what the implications are for the variety of industries with a stake in the shifting demand for payment systems around the world. We will deliver this program in collaboration with The Cambridge Group, which specializes in helping businesses assess and act on consumer demand in a variety of markets. OBJECTIVES To deliver a landmark study on the Future of Payments, providing a comprehensive, detailed perspective and quantification of how consumers experiences with and benefits from payment systems will shift globally over the next 5 years, across regions and categories, and the implications for businesses first in the US and then in other parts of the world. The study will focus on answering a set of core questions relevant to all organizations with a stake in the market for payment systems. From there, industry-specific deep dive questions will be addressed for a variety of industries. We will focus initially on implications for US-based companies, and then turn to a second phase that focuses on global business implications. To provide a unique collaboration model with third party organizations with actionable learning and insight.
o We will conduct research with the close participation of third party participants, whom we will engage privately throughout the research program and will provide critical financial support. o Sponsors will have the opportunity to participate in a unique networking and learning experience, and receive deliverables that are directly relevant to their biggest forthcoming investment decisions in payment systems. QUESTIONS TO ADDRESS We will address a set of core, cross-industry relevant questions in this study. How quickly will consumers adopt cashless payments? o How will penetration growth vary by payment type, region, and type of purchase? o Which consumer groups will be at the forefront of these shifts, and why? What are the key drivers and scenarios behind adoption: regulatory, technological, infrastructure-related, and consumer-driven? o What consumer benefits will drive adoption of mobile payments, stored value cards, prepaid cards, and other payment systems? What are the biggest barriers and challenges facing the adoption of new cashless payments? o How do these barriers vary by category and by region? o How do they vary by consumer segment? Beyond these core questions, we will address industry-specific issues, for Financial Services, Retail, and Technology and Telecommunications companies.
Financial Services Issuing banks and card networks will need a deep understanding of opportunities to offer new payment and financial products in emerging markets, as well as how to integrate those with existing products and consumers in mature markets. What will be the opportunity to offer new payment and credit services to consumers to increase the market size of cashless transactions? How will changes in the benefits sought by consumers influence demand for existing payment and credit services? How can financial services firms deepen relationships with consumers?
Retail Retailers and their partners in media and manufacturing will need to cater to their customers evolving demand for payments to capture the upside potential of changing shopping habits, loyalty, and desired shopping experiences that may be enabled by changes in payments systems. How will payment demand shifts lead to new opportunities to drive loyalty with consumers? What new opportunities will there be to work with media and manufacturing partners to transform the shopping experience as a result of new payment options? How should retailers prioritize investments in payment systems and the shopping experience in light of these demand shifts? Technology and Telecommunications Technology firms will need to understand the intersection between new payment systems and the rest of consumers lives, and what benefits are driving that intersection, to deliver seamless integration of new product offerings that are widely adopted. What are the opportunities for new intersections between payment systems and the rest of consumers lives? What are the major technological barriers facing the increased adoption of cashless payments?
DELIVERABLES Deliverables to sponsors will come in two main forms. We will provide a range of synthetic insights and findings, and underlying information. In addition, we will convene our participants throughout the program to share and debate our findings and their implications for businesses. Content Deliverables Written reports and presentations with answers to and implications of the program s core and industry-specific questions Interactive data visualization tools Access to underlying data assets from the program, including the option to append to each specific organization s existing databases, where feasible Synthesis of findings from the interactive forecasting platform on industry views of the likely shifts in payment systems demand Collaborative Deliverables In-person and virtual meetings with The Demand Institute program leaders o Discuss program development o Present results and findings o Interact with other participants across multiple industries Industry specific meetings with program leaders to share findings and implications relevant to that group of sponsors Access to an ongoing interactive platform for sharing projections and perspectives with other participants and program leaders
INPUTS AND APPROACH The research will be executed in two phases, starting with implications for companies operating in the United States. Our US-focused phase will include two key methodologies. Global Payments Demand Assessment Recent innovations and shifts in the global payments landscape Synthesis of global regulatory, financial services infrastructure, technology, and consumer priorities Implications for the shift in the U.S. payments landscape US Demand Landscape Consumer payments emerging and latent demand, and how they vary across segments Strategic implications and opportunities in payments, and for adjacent shopping, financial services, and mobile lives of consumers Projections of the demand landscape through 2020 We will incorporate and synthesize a wide range of data sources, including: Primary Consumer Research, Nielsen and The Conference Board data, Case Studies, and other Industry Data. We will implement a range of statistical methods and modeling to build our estimates and projections. Our program participants will have the opportunity to provide input throughout. Our team, from The Demand Institute and The Cambridge Group, brings a highly unusual variety of relevant expertise, enabling us to research and synthesize many different types of information. We are: strategists, consumer research experts, econometricians and statisticians, economists, thought leaders in consumer demand strategy, and synthesizers of diverse information. We also bring the support of The Demand Institute s parent organizations, The Conference Board and Nielsen, and their assets and capabilities, to this program.
TIMING AND INVESTMENT Our required investment is 95,700 USD per sponsor for the first phase of the program that will focus on US business implications, with a minimum of 15 participants in order to launch our US program. We plan to launch in Spring 2015, with final deliverables in Fall 2015. Our global program is scheduled to begin in late 2015. ABOUT THE DEMAND INSTITUTE The Demand Institute illuminates how consumer demand is evolving around the world. We help government and business leaders align investments to where consumer demand is headed across industries, countries, and markets. The Demand Institute is a non-advocacy, non-profit organization that is jointly operated by The Conference Board and Nielsen. ABOUT THE CAMBRIDGE GROUP The Cambridge Group has a broad range of experience to help businesses assess and act on consumer demand in an array of markets. We collaborate every day with companies across industries to better understand their customers. We help companies to establish innovation and successful market positions that meet unsatisfied consumer demand and drive profitable growth.