| | JUNE 201919CIOReviewLeading retailers and technology companieshave set a high bar for the financial services industry to create better experiences and simple, seamless integrations that make traditional banking, payment, and other related activities easier to accomplish. The advancement of omni-channel commerce and the presence of leading technology companies have specifically driven the industry to become more open and enable improved payments experiences.And payments are already becoming easier: Most commercial websites,browsers, and smartphones can store credit-card information and allow instant payments and transfers to merchants or contacts, and the first stores and restaurants are going cashless .There's no reason why consumers wouldn't expect the same or better level of ease and convenience when engaging with the evolving mobility ecosystem that moves them and their goods move about. Someone who uses an app to navigate a trip through a bike rental, a taxi ride, a package pickup, and a food delivery would want an integrated, private, and secure way to pay for any trip and service.In this article, we look at how the evolution of mobilityis likely to affect payment providers, and what opportunities they have to be successful in this rapidly changing ecosystem.The goal is clear: Payments in the future mobility ecosystem should be transparent, seamless, integrated, and highly convenient.Enabling the mobility business planUnderstandably, the more colorful elements of the emerging transportation ecosystem--from self-driving cars to airborne passenger drones --have drawnthe most attention. But something more fundamental will likely underpinthe future of mobility: building and servicing integrated, multimodal networks. Payment providers can play an important role in settingup the infrastructure that enables these new business plans, determining how the sources of network effects and ecosystem revenue pools--data and their flow--can be shared.To enable this future state, payment providers shouldcreate stronger bonds with the mobility companies creating change: to become a preferred mobility manager supplier, to entwineproviders' technology with these growing companies,and,ideally, to developa unique insight into what changes lie around the corner.We have outlined three major opportunities below.Ultimately, the winners will likely be those able to bring together multiple players who today might be reluctant to share data. Enabling seamless intermodal mobilityTheopportunity:Enabling users to make one transaction to set-off a sequence of multiple transactions across different services, e.g., across several modes of transport with added ancillary services, on demand (individually scheduled by the user, proposed by artificial intelligence or through saved historic preferences). This sequence could be managed via one defined interaction. The product: A payment provider can aim to offer a mobility-as-a-service (MaaS)-specific platform that follows the value chain. When handling supplier transactions (fleet operators, fueling, bicycle rental and ancillary services), the platform could handle cost allocations across all of a given travel segment's service providers (for instance, how much should the bicycle rental platform earn, given that a certain trip was loss-making?); on the customer side, a portal could integrate all payment options that a customer might need to purchase her fare, potentially including PayPal, a credit card, or a real-time payment. Data-sharing could occur by taking advantage of technologies such as blockchain to create conditional contracts or by using token-like information versus sharing actual data across infrastructure points.This platform would need to integrate seamlessly with a mobility adviser's ERP and invoicing systems. A payment provider could package the offering with implementation and By Chris Allen, Managing Director, & Alex Kostecki, Senior Consultant, Strategy & Operations, DeloittePAYMENTS AND THE FUTURE OF MOBILITYHOW CAN PAYMENT PROVIDERS CREATE VALUE AND SEIZE OPPORTUNITIES IN THE EVOLVINGMOBILITY ECOSYSTEM? Chris Allen
< Page 9 | Page 11 >