Challenging convention: Rethinking payments, platforms and progress

In a frank conversation with The Payments Association’s Tony Craddock, Sudip Lahiri, executive vice president & head – Europe & UK, financial services, at HCL, reflects on the evolution of payment infrastructures, the rise of AI, the cautious march toward digital currencies, and why cannibalising your own business can sometimes be the smartest move.

Tony Craddock: Let’s start with the fundamentals. Where do you see the real transformation happening in payments right now?

Sudip Lahiri: The shift we’re seeing is structural. Countries are rethinking their entire payment architectures—take Ireland, for instance. The conversation isn’t just about speed or efficiency anymore. It’s about whether current systems can genuinely support the needs of real-time payments, compliance, and resilience all at once.
We’re also seeing the growing role of cloud infrastructure. Payment stacks that once relied on fixed hardware and heavy governance are being redesigned to be modular, scalable, and more adaptable to change. That’s not just a tech upgrade—it’s an operating model shift.

Tony: And what’s driving that change—cost, compliance, or customer demand?

Sudip: All of the above, but in different proportions depending on the market. Regulators are definitely upping the ante. Payment providers are now managing increasingly complex backlogs due to new compliance requirements. At the same time, customers expect seamless, instant services. The old systems weren’t built for that kind of dual pressure.

So there’s this tension between centralisation for control and decentralisation for agility. That’s where platform thinking becomes useful. You build a core platform but allow different parts of the business to innovate on top of it. You get consistency without losing adaptability.

Tony: You’ve talked in the past about being comfortable with self-disruption. That’s unusual. Where does that mindset come from?

Sudip: I think it comes from being engineering-led, not just operationally led. There’s a programme we’re running at a major bank where we’re rolling out automation that will reduce our own revenue by over a million dollars annually. And we’re fine with that. The point is to bring real value. If automating the service desk means better outcomes for the client, faster resolutions, and happier employees, why wouldn’t we do it? The challenge is to keep improving even if it means challenging your own business model.

Tony: Is that where the so-called ‘challenger mindset’ kicks in?

Sudip: Exactly. It’s not just about challenging others—it’s about challenging your own assumptions. In our case, that means bringing in AI solutions or next-gen tools that we know will eat into legacy revenue streams. But that’s the point. You’re either driving the change or reacting to it. I’d rather be driving it.

Tony: Speaking of AI—how much of it is real right now, and how much is noise?

Sudip: It’s real, and it’s moving fast. Just a year ago, most enterprises were still running AI as proof-of-concept projects. Now we’re seeing a big shift into live environments where AI is delivering significant business value. That said, there’s a reality check required. The technology might be ready, but organisations aren’t always ready to use it well. Data governance, quality, stability—those are the foundations, and they’re often overlooked. So yes, AI is powerful, but only if the plumbing behind it is solid.

Tony: Let’s pivot to digital currencies. What’s your take on where we’re headed?

Sudip: Blockchain has proven itself to be a valuable technology. That’s not the issue. The resistance is mostly institutional. Many organisations are still hesitant to make the leap from experimentation to production. But there are signals of change. Some private banks are starting to include crypto in their model portfolios. Others are looking at how digital assets might plug into existing systems, particularly in wealth management. That said, I think the real leap will come from central bank digital currencies. Government backing makes a big difference. A digital pound or euro could drive serious adoption—but only if there’s infrastructure in place that’s accessible to the public. Wallets, rails, interoperability—those are the real questions.

Tony: And how much does politics interfere with progress in this space?

Sudip: A fair bit. Geopolitical shifts inevitably influence the debate around digital currencies. We’re seeing speculation about the future of the dollar’s dominance, the rise of bilateral trade agreements, and challenges to the existing financial order. But I don’t think it’s about betting on one currency versus another. It’s about adaptability. If the rules of the game are going to change—and they likely will—then the question becomes: do you have the capabilities and flexibility to adjust?

Tony: One last thing—how do you view partnerships in all this? Especially given how fast the ecosystem is evolving.

Sudip: Partnerships are non-negotiable. No single organisation can do all of this on its own. That’s especially true in payments, where you’re dealing with compliance, infrastructure, customer experience, and emerging tech—all moving at different speeds. Our approach has always been to identify where we can add value directly and where we need to collaborate. Sometimes that means acquiring capability, sometimes it means working with fintechs or platform providers. But the principle stays the same: build an ecosystem that can evolve with the market. And frankly, that’s where associations like The Payments Association come in. Having a platform to share, to learn, and to challenge each other—that’s invaluable. None of this happens in isolation.