New York, NY, USA
August 19, 2009

Payments Opportunities: Finding the White Space

Report Published by Celent

Electronic payments remain an area of high growth, with a 10% to 20% CAGR around the world. There is huge untapped potential in markets such as Indonesia, Russia, China, India, and Saudi Arabia. Yet market entry can be difficult, with economies of scale and network effects creating huge barriers to entry. By establishing a clear target based on geography, customer and payment flow, new entrants can create viable niches.

In a new report, Payment Opportunities: Finding the White Space, Oliver Wyman examines various opportunites for new payment plays across the globe.

  • Prepaid cards used for business to individual payments, such as payroll cards for U-Haul and employee inscentive programs for Coca-Cola.
  • Airline ticket payments in China with China PnR.
  • Alternative electronic payment systems (AEPS) in Russia such as OSMP and Cyberplat. These providers accept cash for payments such as mobile top-ups and charging a convenience fee to the payer.

In each case, the payments concentrated on a specific type of customer, with a specific payment need and created a value proposition that resonated across the payment value chain.

"The payments sector is turning heads," says Paul Mee, coauthor of the report. "It is growing dramatically and undergoing radical change across multiple markets and dimensions. Payments represent a relatively low capital intensity, lower risk annuity business—accessible to anyone with customer insight, confidence, and the right capabilities."

"To focus on a winning solution, the best way forward now is to spot frictions in a particular payment flow, geography, or customer group and to develop tailored payment propositions to remove those frictions," adds Zilvinas Bareisis, coauthor of the report.

This 32-page report contains 13 exhibits. A table of contents for this report is available online.

Members of Celent's Retail and Business Banking and Corporate Banking research services can download the report electronically by clicking the icon to the left. Non-members should contact info@celent.com for more information.

 

About Celent

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally experienced analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

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