We believe that the world of payments is going to be fundamentally transformed between now and 2020. It will be reshaped by technology and redefined by regulation, the emergence of new economic powers, and changes in the global currency.
By 2020 a payment will be understood to be much more than just the settlement of a transaction or the mere movement of funds. The broader commercial, retail, investment or public sector environment of payments will be taken into account, will become part of the basis upon which providers develop greater value propositions.
The world of payments in 2020 will look very unlike it does today, and market transformation has already begun. The competitive landscape will be redefined by the entry of non-traditional providers, the evolution of new solutions provided by financial institutions, and the development of strategic alliances that cross sectoral boundaries.
Besides transformation, there will also be major convergence: convergence around products and solutions linked to payments; around technology platforms and clearing capabilities that will be increasingly global in nature and reach.
We envision that the new financial order would evolve a integrated global settlement and clearing systems, and platform-agnostic channels that allow for maximum client access, flexibility and convenience.
As the ‘tech-savvy’ generation of business leaders emerges, the expectations of retail/consumer and commercial/corporate end-clients with regard to payments are likely to be far more closely aligned than they are today.
With such paradigm shifts, commercial banks and payment services players can remain key players, but only if they respond quickly enough and with compelling value propositions.