Industry leaders discuss the evolving innovations and challenges shaping the future of payments.
The future of payments is evolving at an unprecedented pace, driven by innovation, regulation, and shifting consumer behaviours and, most importantly, payments professionals.
We spoke to some of the trailblazers in the space to get their thoughts on their respective areas of expertise, the latest in payment trends and the challenges and opportunities that lie ahead.
“From Consumer Duty to APP fraud reimbursement requirements, the regulatory foundations of the payments sector are shifting and businesses are struggling to keep up. Customers are expecting real time local payments as a given – and at low cost – but in order to prevent fraud ,and ultimately avoid reimbursement charges, firms need to be able to undertake robust and continuous onboarding and transactional checks. Without the funding to implement sophisticated and automated real time controls, customers will start to see slower settlement times as firms take extra steps to prevent fraud to the detriment of customer experience.”
“In today’s increasingly interconnected world, one of the critical issues we face is the lack of a comprehensive global integration of payment systems. While businesses operate globally, capitalising on diverse markets and customer bases, the payment processes still reflect a more localised or regional approach. For example, within the European Union, payment systems function effectively for intra-regional transactions, but they often fall short when businesses seek to engage in cross-regional or international dealings.
“We truly need a paradigm shift towards solutions that facilitate low-cost, fast, and efficient cross-regional payments. This would enhance business operations and promote economic growth by allowing businesses to easily transact across different regions without being hindered by expensive or slow payment systems. The global economy relies on seamless financial transactions, and addressing this gap in payment integration is essential for fostering a truly global marketplace.”
“Ultimately, we must advocate for innovations in payment technologies and policies that accommodate the dynamic needs of businesses operating internationally, ensuring that financial processes match the global nature of commerce today.”
“I think the next big hurdle for automation in financial transactions is the shift in focus from customer-centric front-end automation to addressing the operational burdens and middle/back-office automation.
“We’re seeing a lot of companies realise the impact of not just what regulators are saying, but also their operational obligations. The focus is moving away from providing a great customer experience through front-end automation and towards using intelligent tools and automation to streamline internal operations, reduce costs, and gain efficiencies.
“Audit firms are providing much feedback to the payments industry that automation is key to addressing these middle and back-office challenges. Companies need to invest in building centres of excellence around automation, with experienced individuals who can leverage the latest tools like AI and machine learning to automate end-to-end processes.
“This shift towards operational automation is a big hurdle, as it requires a change in mindset and skillsets compared to the previous customer-centric approach. But it’s a necessary step for payments firms to gain the operational efficiencies needed to remain competitive, especially as we face potential headwinds and increased regulatory compliance requirements in the coming years.”
“Global regulations around national and international payment services are expected to adapt to the rapid digitalisation of financial services and the increasing prominence and use of digital wallets and alternative payment methods. With an increasing push from regulators worldwide to enhance financial inclusion, achieving interoperability among payment systems and digital wallets will become a priority.
“Efforts will likely focus on standardising regulatory frameworks to enable seamless cross-border transactions while ensuring strong consumer protection, fostering collaboration between governments, administrative authorities (i.e. supervisory authorities) and fintech firms, and supporting interoperability across national and regional payment infrastructures. The expansion of real-time payment systems through digital wallets is expected to accelerate this trend.
“Effective collaboration and ongoing dialogue among firms, regulatory bodies, and governments are crucial for achieving successful outcomes in this field. To safeguard the proper functioning of this market segment and greater protection for the consumers variously involved, Governments are also likely to implement stricter regulations regarding data privacy and anti-money laundering (AML) compliance, pressing payment firms to invest in advanced technologies for transactions to be monitored on an ongoing real-time basis. In this regard, too, close cooperation between firms and regulatory authorities will benefit the former by enabling them to anticipate possible regulatory implications through the development and adoption of sound policies.
“Ultimately, as payment options are becoming more diverse due to the rapid proliferation of ever-new competitors, payment service providers will need to navigate this complex environment by engaging constructively with regulators, ensuring that their payment solutions always present that degree of innovation while maintaining an appropriate level of compliance with industry regulation, so that the current technology is only disruptive concerning the benefits to market users.”
“Payments have evolved to the point where they are no longer about singular solutions but are about creating payment ecosystems. There are vastly different consumer preferences and significantly different technological intuitions, and all these disparate personalities need to be catered to in the payment space.
“This means that card payments, embedded finance, open banking, tokenisation and cross-border solutions, to name just a few, all need to be combined within a strong risk and compliance framework to allow any business to become a fintech that can adapt to new market and new consumer demands. A business relying on just one or two payment methods is ultimately restricting its own bottom line.
“Security and regulatory compliance are not mutually exclusive from innovation, and we need to stop discussing them. Risk and compliance are an integral part of the framework that a business needs to innovate within, so successful firms should be able to leverage these considerations to enhance, not inhibit, product offerings.
“Find me a business that doesn’t value a secure, compliant product, and you’ve also found me a business that I don’t want to use or work with. More often than not, regulations are put in place for consumer safety, so if you have developed an intuitive and impactful product within those guidelines, that is certainly innovative.”
“I believe the next wave of payment disruptions won’t be rapid, but gradual and steady. The payments industry is generally conservative; people take time to trust new methods and adapt to technologies, and every culture has unique preferences. For example, it took over a decade—and likely closer to two—to get contactless payments into mainstream usage.
“However, it’s noteworthy that Visa recently pointed out more payment changes over the last five years than in the previous 50 years. This highlights the fast pace of transformation in the payments and fintech space today. As humans are inherently lazy, convenience and ease of use will shape the evolution of new payment methods.
“The payments space, traditionally conservative, is evolving gradually, giving established card networks like Visa and Mastercard a strong advantage. Consumer behaviour is largely driven by ease of use and convenience, and card networks have successfully combined these elements with robust security by introducing features like contactless payments and tokenisation. This well-established foundation offers them an edge as new methods emerge, helping them retain consumer trust.
“New options like open banking present cost-effective alternatives. However, as these solutions are often regulator-imposed with strict pricing restrictions, they can struggle with developing user-friendliness, security, and fraud prevention. This underscores that the “cheapest” option isn’t always the best choice; even small fees can be worthwhile when they enable ongoing and sustainable development in security, convenience, and fraud mitigation. Consumer expectations are high for secure and seamless payment experiences, and companies that deliver on these fronts will be well-positioned for success.”
“Mentorship programs are a powerful tool to foster diversity and inclusion in fintech, particularly when professional guidance starts early and is structured for different career stages. For example, I started LIFT: Elevating Women in Fintech, a program focused on guiding women in the early stages of their STEM careers. Also, I’m the founder of Paid For Grades, which provides opportunities for students to earn money to improve their readability level and overall GPA. Both of these initiatives are designed to cultivate ambition and resilience. By reaching individuals early, these programs empower them to break barriers that might otherwise seem insurmountable, ultimately promoting a more abundant and diverse workforce pipeline from the ground up.
“By promoting diversity as a strategic business imperative, we can make significant strides toward an inclusive workforce. Over the next decade, I see more companies investing in mentorship programs and re-evaluating biases that persist at different career stages. These efforts will be supported by technology that enables objective, data-driven hiring decisions, ensuring inclusivity and giving every individual a fair chance based on their capabilities. Through such evolving initiatives, the fintech sector can become a leader in promoting a culture where diversity is integral to operational success.”
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