SVEA’s Nordic payment reports have become a longed-for tradition by now. They often contribute great insights into consumer behavior, and the latest report is no exception.
However, one section caught my attention.
What’s revealed in the report is that there are three major components that affect whether a payment method is trusted or not by consumers. They are;
- The payment provider is well-known (52%)
- I recognize the payment provider (43%)
- I have used the payment provider before (43%)
For a (relatively) new business, with new technology, acting in an old vertical, these three components are problematic. When compared side-by-side with global fintechs like Klarna or PayPal, or with card issuers like Mastercard or Visa, no A2A provider today is particularly well-known or recognized.
We are missing out on TRUST, simply because our marketing muscles are not powerful enough.
Banks are not particularly interested in marketing A2A payments. There’s not enough profit with their current business models. Global actors, like Klarna, rather market BNPL or credit because they make more money on that. VISA and Mastercard are spending millions of dollars yearly on TV commercials and other far-reach marketing.
Our customers, in turn, follow consumer trends and demand. If the consumer wants to pay by card, our customers will offer cards, etc.
Sure, some high-risk verticals ARE leading the way for A2A payments and have been for quite a few years now. But those verticals are too small, and not generally accepted enough to affect other larger verticals.
Is it feasible then that actors such as Finshark, or our close competitors, should invest in marketing and visibility towards a target group (end users) where we cannot possibly calculate the ROI in the short run?
If open banking is to have a chance, the public must be informed and educated about the benefits. I think that the EU has a role to play in that. They’ve invested heavily in PSD2, why not go just a little bit further and make the public aware of how great it is?
CEO & Co-founder of Finshark