“Rapidly developing technologies and increasing forays into payments by nonbanking entities are driving banks and payments service providers to rethink their business models, add value to current offerings through innovation, and pursue collaboration with other parties in the payments value chain,” says/writes Anil Das. Excerpts:
Heading into 2018, a trio of trends will be instrumental in shaping the marketplace that PSPs have to navigate:
Real-time payments processing, wide penetration of connected smart devices and advanced technologies will support the increasing demand for frictionless and faster payments across retail and corporate customers.
Open banking initiatives enabling data sharing facilitate collaboration between banks and third-party payment service providers. Such alliances hold promise to help banks deliver a differentiated, technology-driven customer experience tailored to the demands of digital natives, open new revenue streams, and stay relevant by expanding their role in the payments ecosystem into a payments platform provider.
Regulatory bodies will continue to increase their scrutiny of risk and compliance exposures as new market entrants and advanced technologies impact the payments ecosystem.
Emerging digital technologies are playing a growing role in payments, and awareness of potential implementation roadblocks can help banks and PSPs navigate the transition. Banks and PSPs can better position themselves to overcome these barriers and thrive in the new era of payments by developing a differentiated product and service value proposition.
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