Retail payments innovation As I said earlier, e-commerce and new communication and information media have set new challenges in terms of functionality and security for retail payments. They have also given providers of payment-related services new opportunities to compete. These chances are valuable because, as we know, competition is good for business, i.e. it should provide users with more choices and better services.
Unfortunately, these opportunities have not yet been fully exploited by the different market players. Innovative retail payment solutions in the euro area are still largely being provided by non-bank service providers, mainly for the payment initiation phase. Banks – the traditional payment service providers – are at a crossroads.