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Capgemini on Canadian payment trends By Brendan Read
C
apgemini is a leading global consulting and technology services company, with expertise in digital transformation, including financial services. Each year the company publishes the World Payments Report (WPR), which covers global and regional non-cash payments trends, the key regulatory and industry initiatives (KRIIs) and payments environment changes. Payments Business recently interviewed Soumya Ghosh, who is head of banking, Canada, Capgemini, to get his insights on Canadian payments. Soumya Ghosh
Payments Business (PB). Canada has been embarking on payments modernization. How will this shape the payments landscape and how should industry participants (e.g. banks, credit unions, FinTechs, processors, merchants) prepare? 16
PAYMENTSBUSINESS
Soumya Ghosh (SG). The Canadian payments market continues to be influenced by domestic and international payments innovations, payment service providers (PSPs), payment systems modernization and by regulators’ efforts to reshape the payments industry for the future. In fact, the WPR 2019 data shows an increase of non-cash volume for Canada between 4-5 per cent, which is on the low end compared to other markets (double digit growth). Infrastructure renewal should be translated into customer-facing innovation (use of real-time payments for example), but this requires wider effort in the market by the participants Industry participants should take a more holistic approach to fraud management and address concerns around identity verification, data privacy/data theft management and transaction monitoring. Additionally, the industry should focus to improve their payment offerings and provide a more engaging customer experience that requires reimagining and redesigning the payment journey, personalizing/tailoring to customer needs and rewarding payments. SPRING 2020
