The payments industry went through a series of major events in 2019. The year started with a wave of consolidation as major global players began a flurry of mergers and acquisitions that will change the balance of power. 

Digital transformation took center stage, as a new generation of challenger banks emerged from Europe and the U.S., and big technology companies entered the payments space, putting tremendous pressure on incumbent banking powers in the U.S. Privacy and security also took center stage, as regulators moved to protect consumer data and mitigate fraud losses. 

The following are the 10 most read articles of 2019: 

1. Fiserv acquisition of First Data may set off consolidation in payments space 

The payments industry may be headed for a turbulent period of activity following the surprise deal in which Fiserv announced it is buying First Data for $22 billion earlier this month.

The agreement caught much of the industry off guard as the merger had not been a subject of industry speculation and may possibly be the largest acquisition in the payments industry.

2. Chime outages illustrate complexities of digtal banking

Chime Bank, one of the nation's largest neobanks, is recovering from an outage that left millions of customers temporarily unable to buy groceries, access cash from ATM machines and get their balances. 

The outage, which stemmed from a disruption at a third-party processor, and also impacted rival fintech Varo Money, highlights the vulnerabilities facing digital banking customers that rely on mobile apps to conduct banking and have no walk-in branches when a crisis hits. 

3. Legislators move to bank cashless payments at retailers, restaurants

The rising adoption of contactless payments in the retail and the restaurant industries is igniting a backlash in multiple cities and states as the business payment model requires customers to use mobile apps, credit or debit cards, and is increasingly eliminating cash payment as a consumer option.

The backlash is related to concerns that millions of unbanked and underbanked consumers will be shut out from the establishments.

4. Automakers expand connected car ecosystem with payment technologies 

As integrated payments technology continues to evolve and Internet of Things technology expands the automation of voice control and natural language, the auto industry is increasingly looking at mobile purchasing as another key feature of the connected home experience.

The same technology used to turn off the lights, lower the temperature and secure the front door is being used in car navigation systems, unlocking and starting the car on a winter morning, buying a morning cup of coffee, paying bridge and highway tolls and pre-ordering a breakfast muffin.

5. As PSD2 deadline draws near in Europe, calls for delay grow louder

As the mid-September deadline draws closer for a major transition of customer authentication rules for e-commerce transactions in Europe, a growing number of voices are seeking a pause to prevent what they fear could be a logistical nightmare for merchants, banks, payment processors and consumers.  

6. Restaurants, retailers rethink cashless as financial inclusion takes center stage

The growing backlash against cashless retail and restaurants is forcing merchants across the country to rethink their business models, as local and state legislatures have forced an increasingly urgent debate on financial inclusion, innovation and the cost of doing business in a free society.

7. Apple's expansion into credit card space could lead to disruption

Apple has once again shaken up the technology space after unveiling its highly anticipated venture into consumer credit, called Apple Card, under a partnership with Goldman Sachs and Mastercard. The service provides users a sleek digital credit card that offers cashback rewards, no major fees and a level of transparency and control over how they repay purchases and manage their overall finances.

8. Latin American payments market becomes an emerging target for development 

While much of the e-commerce and banking world's attention has been on the rise of cross-border and mobile payment in Asia and faster payments in Europe, a new picture is coming into focus in Latin America.

9. Worldpay, First Data deals reflect globalization of payments space  

Payments industry analysts say the blockbuster $35 billion acquisition of Worldpay by FIS is a reflection of a wider consolidation trend in the payments industry fueled by consolidation in the e-commerce space.

10. Payments fraud remains on the table as PSD2 delay takes hold

As the highly anticipated delay in the implementation of PSD2 takes hold in Europe, experts are warning that retailers, financial industry companies and consumers remain vulnerable to criminal fraud as the industry struggles to resolve a myriad of problems that put plans to implement Strong Customer Authentication on hold. 

Cover image: iStock.

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