International Webinar 2022 - Business culture, how to step forward - part 13

The International Presenator from Singapore explained that the payment system is currently undergoing a radical shift. As part of digitalization and new innovative competitors entering the market, payment service providers have to deal with changing customer needs. Critical factors for success here include a clear customer orientation and a high degree of flexibility in payment solutions.


In addition to these success factors, it is also important to meet the central requirements for the payment procedure from the customer's perspective:

- Fast—live execution and settlement of national and international payments around the clock.
- Simple—smooth payment processing without media/channel interruption
Safe—security and transparency of permanent data and transactions to protect against fraudulent activity.
- Cost-effective—reduction in existing costs of carrying out (international) transactions.
- Anonymous—no electronic traceability of individual transactions in person.


Due to the dynamics and high growth in the market, German end customers are now increasingly turning to cards instead of paying with cash. As reported by the retail research institute EHI, for the first time in Germany, more are paid with debit or credit cards than with cash (card payments: EUR 209 billion, cash payments: EUR 208 billion).


In addition, (mobile) payment providers with their real-time solutions will be able to further increase the adoption rate in Germany in the medium term if merchant acceptance is further expanded.


When it comes to instant payments, merchants should be able to get payment security similar to that of a credit card, but at a much lower cost, giving them real payments 24/7, immediately valid, irreversible like cash.


Although Bitcoins and the like are largely comparable forms of anonymous payments, they are only suitable to some extent as an alternative to cash as a way of retaining value and have decidedly limited uses.


Innovative payment methods such as mobile payments are already a reality in many countries, and new domestic and international solutions are being added regularly in Europe. The rapidly growing number of new competitors is increasing the dynamics, and at the same time new providers are intensifying the market environment with their aggressive pricing model and modern and flexible product range.


The main difference with Wirecard is that Google, Apple, and Facebook don't want to offer a banking product by nature, but rather use the payment function primarily as an extension of their data-driven business model. For this reason, some of them do not pursue the immediate profit-making intent of traditional banks, but are primarily interested in customer data — what they want primarily is data, not money.


In addition to developments in the sector, there are start-ups that aim to build new payment platforms on “greenfield sites” instead of using a growing infrastructure. Shorter innovation cycles and agile product development are the drivers of success for new competitors, allowing them to offer customers better products.


This material was presented by a presenter from Singapore in an international webinar entitled "Paradigm Shift - The World is Changing - Opportunity and Challenges - Challenges: Slow Global Growth - Opportunity: Greater Regional Cooperation" held by STEKOM University in collaboration with Universiti Perlis Malaysia, Singapore University of social science, PTIC and various other parties. The presenter's name from Singapore is Lee Khuay Khiang who is a lecturer at STEKOM University.


This international webinar activity is part of the implementation of STEKOM University's commitment to increase various international activities. This was done in order to realize the vision to become an international-class university. Various international activities carried out by STEKOM University continue from year to year. There are international activities that are sustainable and there are also some international activities that are not sustainable. All types of international activities are accommodated and regulated by the International department of STEKOM University.