Debbie Guerra, executive vice president of merchant payments and payments intelligence solutions at ACI Worldwide, dives into how digital transformation will be key to enabling businesses, individuals and entire economies to recover from the huge challenges presented by the pandemic. “Even after the pandemic subsides, the digital acceleration we experienced in 2020 will not — it is here to stay,” she says in “A Look Forward: What Executives Wish for America and the World in 2021.”
Looking ahead to 2021, I believe that secure digital transformation will remain a priority globally as individuals, businesses and economies begin to bounce back from the events that have so challenged us all in 2020. A Year of Innovation in the Face of Adversity Digital and omnichannel consumer journeys have accelerated during 2020, as click and collect, buy online pick up in-store (BOPIS), and contactless payments and touch-free shopping have all seen an enormous boost this year.
Payments technology has been a critical enabler for these in-demand services, and that will be the case as we see the digital shift continue into next year and beyond. Increasingly, real-time payments and the use of diverse new payment methods are gaining traction — responding to both merchant and consumer preferences, while at the same time challenging the traditional value chain that characterizes the payments ecosystem.
Even eCommerce merchants (who are, by nature, more digitally enabled) are increasingly adapting their business models to evolve to new consumer demands. To remain relevant in the future, brick-and-mortar retailers, in particular, must respond to the pace of change and embrace the new expectations and needs of their customers.
As economic uncertainty still persists, the reliance on new forms of credit is also expanding globally, as “buy now, pay later” schemes, subscriptions and installment payment options are becoming increasingly mainstream. Consumers have choice. They are making their voices heard. They engage with companies that listen. While generational differences in buying behaviors clearly exist, those gaps are narrowing. I hope and trust that consumers will continue to use their voices, and that merchants will continue to listen, adapt and innovate in an effort to become even more customer-centric.
Challenges And Opportunities Ahead In 2021
Merchants are expected to deliver enhanced consumer experiences while balancing data protection and fraud prevention across all channels. This is one of the biggest ongoing challenges they face, and merchants will need the right tools in place to get that balance right.
For example, universal omni-tokens are a powerful ally in this area, since they enable merchants to securely and confidently create unique customer payment experiences. 2021 is likely to be the year when omnicommerce moves from hype to reality. Whether it’s a grocery store, drugstore, fuel company, convenience store, telco or a general retailer, every organization has evolving needs that omnicommerce solutions will need to rapidly address.
Even after the pandemic subsides, the digital acceleration we experienced in 2020 will not — it is here to stay. At ACI, we are excited about the rapidly evolving payments landscape and the opportunities it affords. We are optimistic that 2021 will deliver a safer work environment, healthier families and new opportunities for social engagement and commerce.
We stand ready to embrace the new normal, and to provide consumers, merchants, intermediaries and financial institutions with the necessary solutions they need to respond to these challenges.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
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