TREND 1 TREND 2 TREND 3 TREND 4 TREND 5 GEN Z RISING UX IS THE NEW GOLD MOBILE HIT ITS GROOVE REWARDS REVOLUTION THE NETWORK EFFECT TREND 6 TREND 7 TREND 8 TREND 9 TREND 10 FINTECH AND BANK FUSION AN ARMS RACE IN CODE PAYMENTS EVERYWHERE FRAUDSTERS INNOVATE TOO RIP AND REPLACE REQUIRED TREND 7 AN ARMS RACE IN CODE The way consumers think about their credit card accounts is about to undergo the most radical shift in 100 years. Accounts are identified by a string of numbers. But with EMV, every credit card account becomes software code. Code that runs securely and can produce a different number every time. Combine this with advancing digital payments technologies, and the potential is mind boggling. Over the next few decades, this change will disrupt nearly every aspect of payments. The industry is already experiencing the first wave of this disruption with tokenization. It enabled Apple Pay and Android Pay—a watershed moment because it was the first time that banks ceded control to outsider third parties. But this is only the beginning. Consider this. Tokenization allows custom account number code unique to a single website. If the code is stolen, it is useless for any other transaction. This alone could change the face of credit card security, which consumers care about deeply. There is a monumental impact to the power structure to consider as well. Code will kill the physical card and upend the payments infrastructure as credentials become virtualized and can be embedded anywhere. The processing side changes completely if card providers become token providers and cut out the service layer. This is uncharted territory. To navigate this change, traditional players will need very different approaches to innovation and management of payment credentials. First movers will not only continually push the boundaries on the art of the possible in code, but also, invest in and develop rapid innovation capabilities to bring ideas to market before anyone else does. The broad impact that code will have on the industry illustrates just how much, and how quickly, technological advancements are impacting payments. From blockchain and augmented reality to advanced biometrics and the no-payment payment, the deluge of so much technology so fast can be unnerving. But the value to the industry is not about the “what” of the latest and greatest technology, but “how” it will reinvent customer experiences, standards, regulations and safety and security measures. 10 | DRIVING THE FUTURE OF PAYMENTS 10 MEGA TRENDS Copyright © 2017 Accenture. All rights reserved.