RICHER USER EXPERIENCE
Last but certainly not the least is the customer experience dynamic. A decade's worth of effort has gone into making information access via browsers more mobile-friendly across industry sectors. Millions of apps have emerged that provide a richer user experience.
Banks are not far behind and have championed multiple efforts to drive legislation, industry collaboration and develop their own apps designed for information access and transaction management.
Singapore - like Sweden - is a great example of such collaborative efforts between the government (Monetary Authority of Singapore or MAS), banks and merchants to develop real-time payments systems such as FAST, InterBank GIRO and EzLink which has facilitates a great user experience.
Non-traditional players like Apple and Google are also doing their part by creating payment ecosystems within their phones that offers a seamless payments experience—both online and offline.
Despite these efforts, the online user experience dynamic still has a lot of room for improvement which requires collaboration between government, merchants and banks especially with regards to fraud detection and prevention - the single biggest worry for customers transacting online.
The payments market continues to evolve at a rapid pace. The sharp increase in non-cash transactions aided by better user and customer experience, smartphone ubiquity and an open ecosystem will drive further cashless adoption but online security, privacy and familiarity with cash remain as major obstacles towards this end.
So is there a 'tapping point' for payments in the near term for us across Asia? The growth in the space continues to be strong and the coming decade will see us making more taps. There's opportunity but the history of payments tells us it is not always predictable.
Faraaz Ali is Executive Director and Regional Business Head - Cards and Lending - Retail Banking Asia Pacific at ANZ