Three Disruptive Payment Trends In 2013: Greater Customer Value And Shifting Economics Will Shape The Future Of Payments

Denée Carrington

2013 will be a pivotal year in consumer payments. It will be marked by an increase in digital disruption by nimble, tech savvy competitors. Payments incumbents will leverage their market power to battle disruptors. We see early evidence of this with MasterCard's new fee structure for “staged” digital wallet providers such as Google Wallet, PayPal and Square, which mask the merchant of record and other transaction details from others downstream in transaction flow. Finally, merchants and consumers will wield their tremendous influence in picking winners and losers as the array of alternative payment options become more abundant, more accessible and begin to deliver greater value to the commerce experience. In my new report out today, titled “Three Disruptive Payment Trends in 2013,” I explore three trends, driven by digital disruption, that will shape the future of consumer payments. I provide an analysis of what each trend means for competitors across the payments ecosystem and provide recommendations for responding to the impending disruption. Here are the key takeaways:

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How To Build A World-Class Mobile Banking Strategy

Peter Wannemacher

Mobile has gotten a lot of attention at banks recently. In fact, other teams in a firm’s organization are starting to feel like Jan Brady, the voices in their heads chanting “Mobile Mobile Mobile!”

But there’s good reason for the increased focus on mobile banking efforts: mobile is the most important strategic change in retail banking in over a decade. It is shifting your customers’ behavior, raising customers’ expectations, and opening up new opportunities for banks, their competitors, and new disruptors.

So how can strategists at banks assess the current and future state of the mobile banking market? How can they plan their own mobile banking roadmap? What do they need to successfully execute these plans? And how will they continue to improve and enhance their mobile offerings going forward?

Forrester’s new Mobile Banking Strategy Playbook seeks to answer all of these questions, drawing on mountains of research and deep dives into data in order to give eBusiness teams at banks a complete framework for building and maintaining a world-class mobile banking strategy. The playbook will include 12 chapters (plus an Executive Summary) that cover different aspects of mobile banking – and many of those chapters are already live. These chapters outline how to develop a successful mobile banking strategy. Specifically, we recommend that mobile strategists at banks:

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US eCommerce 2013-2017: Still On Fire (And A Jobs Engine To Boot!)

Sucharita  Mulpuru

We have just finalized our projections for US eCommerce for 2013 and not surprisingly, the numbers are strong — excluding auctions, we expect that figure to be $262B, 13% higher than the total in 2012. A few highlights of note:

  • Three categories capture over one-third of that total. Yes, only three! Apparel and accessories alone are a $40B-plus sector (which probably explains the heavy investment of players like Amazon in the space), followed by consumer electronics and computer hardware. 
  • Overall web penetration is 8%. That may not seem very remarkable, but that figure is deceptive because it’s weighed down by the grocery/food and beverage category, which is one of the largest overall but least penetrated online. In fact, if we exclude grocery from the mix, overall eCommerce penetration in the US jumps to 11% of overall retail. 
  • eCommerce is a jobs creator in the retail sector. For the first time, we have estimated the total employment in the US that results from the online retail sector. Our estimate is that over 400,000 individuals are employed in some web retailing function, of which more than half are salaried professionals (i.e., all non-fulfillment and call center employees). Furthermore, many of these salaried positions have promising long-term career growth trajectories. Given that there are probably about 750,000 such salaried jobs overall in retail (my estimate, approximately 10% of the 7.3M people employed in retail overall), the fact that the eCommerce sector has nearly 200,000 of them is a remarkable testament to the employment impact of this sector.
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European Online Retail Forecast 2012 to 2017: Online growth will begin to polarize across Europe

Martin Gill

European online retail sales will reach €191 billion by 2017, up from €112 billion in 2012 – reflecting a 11% compound annual growth rate (CAGR) over the next five years.

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Hybris Secures An Additional $30M In Funding: What It Means

Peter Sheldon

Today hybris announced it has secured an additional $30M in funding from two Silicon Valley VC giants (Meritech Capital Partners and Greylock Israel). This funding comes only 18 months after hybris took a significant funding round from Huntsman Gay Global Capital to secure their acquisition of iCongo in August 2011. Despite an unprecedented period of growth over the past two years the firm has remained profitable. So why has hybris taken this additional round of funding and what does it mean for customers, prospects and partners?

  • It allows hybris to retain independence while growing credibility and market share. This additional round of funding buys hybris a window of security to maintain their independence in the market, allowing them to focus on R&D and scalable expansion without the distractions of the need to do an IPO or the threat of acquisition. By adding two leading VC firms as investors, the firm is clearly signaling to the market their intent to solidify their position as a global leader in the commerce technology market.
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A tale of two brands: Are you ready to embrace the realities of digital business in 2013?

Martin Gill

2013 is going to be a fascinating year for retail in Europe.

When I look at what’s to come this year, I can paint a picture of what Forrester predicts by looking at a tale of two brands. Both are iconic, heritage British brands that have responded to their increasingly digitally enabled consumers in two very different ways. Naturally, this has resulted in two very different levels of success.

1. HMV
One picture says it all . . .

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Finovate Europe 2013: Digital Financial Innovation

Benjamin Ensor

FinovateI’ve spent the past two days at Finovate Europe in London, which has rapidly established itself as the leading European retail financial technology event of the year. This year’s event was bigger than last year’s, with 64 exhibitors spread over the two days.

Here are my impressions from the two days:

  1. Innovation is hard and usually incremental. Our expectations are so high. It’s easy to sit in the audience and think ‘I’ve seen something like that before’. It’s a lot harder to develop truly new ideas, let alone build them and market them. Innovation is necessarily incremental, moving into the adjacent possible opportunity as my colleague James McQuivey puts it (see him explain it on video here). True invention is extremely rare. As James puts it in his new book, “The most powerful ideas consciously draw from and incorporate elements that were being developed by others along the way, ultimately generating the best outcome in the shortest time at the most efficient cost.” That’s what makes events like Finovate so useful.
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Luxury Retailers: Wake Up! The Internet is Here to Stay...

Martin Gill

The following picture might be a little harsh...

...but I’ve spoken to a number of eBusiness executives in luxury retail companies over the last 12 months or so, and by and large they share a similar frustration. For the most part, their senior management remain resolutely defiant in the face of the opportunity that digital brings.

Which is arrogantly short-sighted, when you consider that luxury shoppers are:

  • Young. Shoppers who buy luxury products online in the US are almost ten years younger on average than regular online shoppers. Globally, online luxury shoppers are more likely to be tech-savvy thirty-somethings rather than brandy-swilling boardroom bumblers.
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Introducing The Retail eCommerce Playbook

Sucharita  Mulpuru

In a recent blog post of mine, I mentioned that Forrester had launched the Retail eCommerce Playbook. This playbook provides a structured framework to guide eBusiness professionals through their most strategic initiatives in eCommerce – from creating a vision to benchmarking results against peers.

It’s not a secret that consumers are constantly connected to the Web and it’s having a huge impact on how they research and buy products in every sector. As such, it is imperative that eBusiness executives have the appropriate tools and knowledge to execute a strong web presence that not only showcases their brand but also enables shoppers and store associates to research and buy. We crafted this playbook to address all the key elements of success. This playbook will help you:

  • Discover the importance of a best-in-class eCommerce business by providing eBusiness executives with insight into the opportunity for eCommerce, its growth trajectory, and the current landscape that retailers face as they continue to navigate this channel.
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What's in the Agile Commerce Playbook?

Martin Gill

I’ve been called upon to present on agile commerce many times over the last year, and when I do I most commonly start with this quote:

"Change is the law of life. And those who look only to the past or present are certain to miss the future."

It’s from John F. Kennedy, a man that I admittedly don’t know that much about, but the sentiment in this message rings true for me. I am a passionate reader of history and taken too literally, JFK’s quote could seem to tell us not to look back for answers. But my take away from it is rather that you must learn how to build the future from lessons of the past. Don’t dwell only in tradition and “how it’s always been.” Far too many businesses have driven themselves to the wall over the last few years (Borders, Blockbuster, HMV, etc.) because they clung to the belief that what had made them successful in the past would remain their source of competitive advantage in the future.

One thing that history does tell us is that not only is change the law of life, but the pace of change is only getting faster. And that’s where the concept of agility comes in. I’ve written before about why agile commerce is more than just “multichannel done right.”  Absolutely, the imperative of putting the customer at the heart of everything you do and serving them coherently and consistently across touchpoints is critical. But agile commerce builds on this by focusing on the need to achieve organizational agility.

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