In this episode of Deciphered, Adam Davis, Associate Partner at Bain & Company, is joined by Karim Ahmad, Partner, Bain & Company, Kelly Devine, President, UK & Ireland, Mastercard and Colin O’Flaherty, Head of SME for Barclaycard Payments, to discuss the future of retail transactions. Retail payments is both a rich and growing industry, with Bain & Company estimating the total revenue value at $356 billion dollars, with a projected annual growth of 6% over the next 5 years. But the balance of power between traditional and new entrants in this area of finance is slowly shifting. In this hotly contested market, some 90% of today’s revenue pool could migrate to software vendors, major technology firms, and other contenders. How will the retail transaction market evolve over the next 10 years?
In this episode of Deciphered, Adam Davis, Associate Partner at Bain & Company, is joined by Karim Ahmad, Partner, Bain & Company, Kelly Devine, President, UK & Ireland, Mastercard, and Colin O’Flaherty, Head of SME for Barclaycard Payments, to discuss the future of retail transactions.
Retail payments is both a rich and growing industry, with Bain & Company estimating the total revenue value at $356 billion dollars, with a projected annual growth of 6% over the next 5 years. But the balance of power between traditional and new entrants in this area of finance is slowly shifting. In this hotly contested market, some 90% of today’s revenue pool could migrate to software vendors, major technology firms, and other contenders.
How will the retail transaction market evolve over the next 10 years?
Timestamps:
- (03:14) Consumer to business payments - what is the future of retail transactions?
- (05:53) Which providers/industry players have been driving the change in banks' monopoly vs reacting to the change in & how do you see that evolving in the market short term?
- (10:07) Which trends interest you from the perspective of your role at Mastercard?
- (13:27) Within the SMB segment, how important are virtually integrated platforms, do you see the same proliferation in the UK/Europe as in the US, and where do you see those trends fitting into the SMB context?
- (16:45) Card growth and looking towards alternative payment methods for growth.
- (22:26) Potential innovations that relate to card volumes and the rise of A to A payments.
- (26:09) Embedded payments, the proliferation of wallets and connected devices
- (27:51) How do Barclaycard build confidence in supplying payments to organisations where the end users are unknown?
- (33:18) Are investments in sales, marketing, and brand increasing to positively impact customer trust?
- (39:13) Open banking
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For even more information, check out Bain’s latest report – Consumer-to-Business Payments: A Strong Growth Outlook, but Only for the Well-Prepared.
For more insights from the Deciphered podcast, visit the page on Bain’s website