Payment Trends in 2020

As we move into a new decade, advances in technology are set to continue affecting the card payment industry, with a range of innovations designed to revolutionise the way in which payments can be collected. So what changes should you expect to see in 2020?

Strong Customer Authentication

Designed to provide customers with added protection from fraud when sending money online, Strong Customer Authentication (SCA) became mandatory in September 2019 as per the EU’s Revised Directive on Payment Services, although banks have been granted permission to roll out the process gradually throughout the year. The directive will be enforced fully from 31 December 2020.

SCA technology requires at least two forms of authentication to be built into a website’s checkout system:

  • Something the customer has (e.g. mobile phone or tablet)

  • Something the customer is (e.g. facial recognition or fingerprint ID)

  • Something the customer knows (e.g. PIN or password)


2020 is also like to be the year that biometrics become an integral part of the UK’s online banking system, with fingerprint scanning and facial recognition providing a reliable and secure method of authenticating purchases to reduce the risk of fraud.

While some forms of authentication can be time-consuming, detracting from the customer experience, the 3D Secure 2’s ‘frictionless authentication’ process allows transactions to be authenticated without any delay, provided the cardholder’s bank is satisfied that the purchase is being made by the cardholder. For added security, the customer can be asked for an additional form of authentication if they do not meet these criteria.

Network tokenization

Another new form of technology for 2020 is network tokenization. Tokens have been commonplace in the card payment industry since the turn of the millennium, providing security by substituting your card’s primary account number (PAN) with an arbitrary list of numbers so that sensitive information is not used during a transaction – reducing the risk of your data being hacked.

Where network tokenization differs is in the breadth of the tokens’ usage. Unlike payment tokens, network tokens aren’t restricted to a specific merchant, device, channel or transaction type. This means they can be used at all stages of the payments flow, ensuring the PAN is never revealed or transmitted to any party during a transaction.

Customer rewards and enhanced service

Customer experience is everything in the card payment service industry, and 2020 should see technological advances allowing for a more streamlined, easy-to-use service. Card payment companies that provide additional services such as financial advice and managed billing will get a step ahead of their rivals in a competitive market.

Studies have also shown that customers respond well to rewards and are willing to switch providers if the rewards are big enough. Providing tempting rewards is a simple way to build up a loyal client base.

With advances in technology giving the card payment industry a completely different look in 2020, it is more important than ever that your company has a card payment service provider you can trust. At London & Zurich, our bespoke, cost-effective services are designed to make your life easier, so if you’re in need of assistance, get in touch today.

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