The emergence of Fintechs, new payments-enabling technologies and an ever changing regulatory landscape have led to the development of an open and collaborative payments ecosystem, according to an analysis reported by Business World’s online edition.
This collaboration will make the payment’s fintech landscape unrecognizable in a decade, it said, adding, the innovation of opposites—finance and technology together will have a mutual powerful dependency.
The Rise of the Digital Platform
Payment solution providers once controlled their own destiny in accepting payments. Now there is a proliferation of payments acceptance at the point of sale, online and on the go. Payments that were location bound are now device enabled. This shift points to a future of universal acceptance that will alter relationships between merchants, customers and payments intermediaries.
The future segment of businesses -‘Teens and Young Adults’ are all about digital technology and the smart phone. This generation demands immediacy, and a highly personalized relevant experience. Almost 70% of the Gen - Z generation use mobile banking apps daily, with 68% wanting instant payments.
Envision an omni-channel experience that eliminates human errors and saves money in the long term. New advances in medium to enterprise POS technology will increase efficiency and provide detailed marketing insights. Also, the creation of a payment infrastructure in the bank that is flexible and granular will extend and help to drive innovation and efficiency in payments.
According to a news story published by ET tech, Banks are on an overdrive to install point-of-sale (PoS) machines and have surpassed the target of installing a million additional machines, stepping on the gas to protect their turf.
The way people make payments is changing faster than any area of financial services, impacted by the changes in digital technology, competitive forces and consumer demands. Combining these bold new business models and cutting-edge technologies there will be an increase in the digital/ POS transactions.
Best-of-both-worlds partnerships like these will power the future of payments transformation. Eventually, everyone will be able to make and accept payments when (and where) they like.