Part III

Payment Industry Initiatives:
Alternative Payment Methods

In our previous two articles of this three-part series, we discussed the modernisation of payments and the benefits of an instant payments solution, for this final instalment, we will be looking at possible alternative payment methods currently available and how Sybrin’s Payments Hub is able to support these.

The list of alternative payment methods is growing exponentially. Although the method of payment might be different for each, our Payments Hub offering can play a significant role in the following common requirements especially:

Payments Hub

API integration to the alternative payment providers. Sybrin’s Payments Hub supports many industry integrations out of the box, and our low-code platform; Sybrin Platform, can quickly build new ones as required.

Managing alternative payment processes. The Sybrin Payments Hub also has many off-the shelf-templated processes that can be configured for alternative payments. Our Payments Hub manages processes from alternative to conventional payment methods in a seamless process and vice versa. It might be possible, for example, to use cryptocurrencies as a cross-border payment mechanism, and then transfer the relevant funds to the bank account of the customer all in one seamless process.

Fraud and risk management. Sybrin’s Payments Hub can route alternative payments via the Sybrin fraud and risk module, or to the customers’ own systems. This allows for a holistic approach to fraud and risk management.

Reporting. Alternative payments can use similar reporting which is already available on the Sybrin Payments Hub. This allows for a consolidated, single reporting view across all payment types.

Sybrin is investigating the below alternative payment methods
and will prioritise as per industry trends or customer requests:

Social Media Payment Channels
The Sybrin Payments Hub completed an integration Proof of Concept (PoC) where WhatsApp Pay is used as a payment instruction.

Peer-to-Peer (P2P) Payments
P2P services are apps or app features that allow you to send money instantly to other people.
Our Payments Hub supports the concept of proxy payments, which allow for the identification of people or merchants by searching for their phone number, email address, or username. This is an important feature of P2P payments.

Invoice and Pay Later Solutions
“Pay Later” is an online payment method that enables users to pay for goods purchased online via a bank loan. The bank loan is offered at the checkout stage, where customers can choose from a list of financing offers from different banks that they collaborate with. Traditionally, “paying later” was offered in retail, but more recently this payment method is being offered in travel as well. Such payment flow complexities are managed seamlessly by our Payments Hub.

Contextual Payments
Contextual commerce is all about removing friction for a customer during their shopping experience. Consumers can buy anything, anytime, anywhere with the click of a button, voice command, or swipe of a finger without having to leave their favourite “shopping channel”, whether it is a hard copy magazine, website, or physical store.
Research has shown that customers prefer banking (and spending) contextually. They prefer staying within their known and trusted banking environment (app), and managing their funds, which might be in multiple accounts and third-party wallets, from there.
The Sybrin Payments Hub can aggregate payment information from several sources via API and related processes.

Cryptocurrencies and Distributed Ledger Technology
Various payment methods, either using crypto currencies, or distributed ledger technologies provide an alternative cross-border payment mechanism. A few examples:

Sybrin’s Payments Hub can integrate into most of the crypto exchanges/crypto payment services to facilitate these payment processes.

eWallets and Mobile Wallets
eWallets such as AliPay, WeChat Pay, Google Pay, and Apple Pay are supported, as well as mobile wallets such as MTN MOMO, and MOWALI.

Biometric Payments
Certain payment methods will allow for authenticating transactions with biometrics (fingerprint or facial recognition), which can make the entire shopping experience faster and safer for both consumer and retailer.
The Sybrin Payments Hub can facilitate the additional biometric payment information in ISO 20022 format.

Payment Tokenization
The card world (debit/credit cards) is typically a separate entity from the account-to-account payment world. Card tokenization (supported by all major card players, like MasterCard, VISA, etc.) enables the Sybrin Payments Hub to securely provide a consolidated view of some card transaction information together with account-to-account information.

QR Codes
The use of QR codes has grown exponentially as per the following statistics from Beaconstack:
  • An estimated 11 million households will scan a QR code in 2020 in the USA alone.
  • Southeast Asia and India are going to be the largest region to scan QR codes by 2020 at 15 million and 8 million respectively.
  • QR code usage will be about 10.1 million in Europe by 2020.
  • Twice as many users scanned a QR code in Europe and North America in 2018 than in 2015.
  • Australia has a 90% mobile phone penetration and QR code usage has rapidly grown in the region simultaneously.
  • The Middle East and Africa are gradually increasing the use of QR codes from a low 12% in Q1 2017 to 18% in 2018. (Global Web Index, 2019).
  • In Brazil and Europe, QR code usage is 7% and 8% of consumers respectively, scanning QR codes several times a week. (Packaging Insights, 2019)
  • In China, 50% of users scan QR codes several times a week.

The Sybrin Payments Hub supports a concept called proxy payment, which typically supports a merchant directory and/or customer directory. These directory services can be extended to store merchant-specific QR code attributes:

  • QR code model (Denso model 2 is a free version and mostly used).
  • Type of QR: Static, dynamic etc.

Overall, there are many exciting updates in the payments industry presently, and this is likely to intensify as we enter the fourth industrial revolution. Contact us to find out how Sybrin can help you jump ahead of the competition early.

Read more about our Payments Hub offering here

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