The Brave New World of Payments?

Payment processing is like an iceberg. Cards, devices, and apps that should make payments as easy and user-friendly as possible are just the tip of the iceberg. Below the surface of the water, there is an obscure web of relationships between a multitude of market actors, processes, and systems that ensure the flow of money from the payer to the beneficiary. A true dichotomy – above the water, the simplicity for the buyers and retailers, below, the complexity of payment processing.

According to a study conducted by Worldline, this gap is likely to become even more distinct due to the disruptive impact of digitalization. It is becoming easier to make payments, while the processes governing the payments gain in complexity. To mitigate this problem, the market players need to innovate. That is the starting point in the study regarding the vision of payment transactions in 2030.

The study analyzes the challenges and trends from three perspectives:

• How can the rapid growth of business models and new forms of currency be guided to create straightforward, sustainable solutions?
• In the face of accelerating digitization, how can secure, holistic solutions be created that enable new shopping experiences and the automatic processing of payments?
• How can regulators shape the regulatory framework and privacy protection policies in such a way that market actors use data responsibly and thus promote trust at the point of sale?

Many innovations that are being introduced are maturing and growing together, the study says, “to create a level of convenience that has long seemed like science fiction.” A loyal, context-aware intelligent agent can take care of the family’s weekly groceries and pay for them directly. Using data from Internet of Things devices in the home and previous habits, it can determine which products need to be bought. It knows the budget and spending habits and, thanks to loyalty programs, selects the best delivery service and most suitable delivery date.

Gabriel Juri
SIX