Thursday 28 Mar 2024
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KUALA LUMPUR (Dec 15): Banks across the world are set to significantly increase spending on new payment technology in 2016, according to a new report by Australia-based independent technology firm Ovum.

In a report released today, Ovum said that driven by increased emphasis on security, changing consumer behaviour, and new technologies — such as Blockchain, mobile payments and real-time payment transactions, almost two in three (61%) banks globally will increase their spending on payment technology next year.

"This is up significantly on 2015, when just over half (52%) increased their IT expenditure on payment technology.

"Most tellingly the proportion of banks reporting significant increases in payments' spending (over 6%) has leaped from near 10% to almost 30%," it said.

Ovum said that such a major shift was representative of the transformative levels of change happening in the payments market.

Ovum senior analyst for its financial services technology Giles Ubaghs said that investment levels in payments had been high in recent years, driven by the need to deploy new payment services, cope with the overall rise in electronic transaction volumes and replace ageing legacy infrastructure.

"2016 will see an increase in this trend," said Ubaghs.

 

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