Trends & Vision

The New Payments Ecosystem

Published on 11.12.2017

A new payments ecosystem is emerging, created by higher corporate and consumer expectations of value-added services, an ever-changing regulatory landscape, the emergence of FinTechs, and an increase in payments-enabling technologies. Within this dynamic environment, payments industry participants must strategically reassess their roles.


Corporations are turning to Banks for help in providing value-added services for their clients

  • Corporations move payments’ markets, so corporate demands for better, more reliable end-to-end services are having an impact throughout the payments’ ecosystem.
  • Opportunity for banks to retain and grow business with existing corporate clients, and acquire new clients at a time of high competition.
  • Increased collaboration and partnership within the new payments ecosystem will create business value for corporates, banks, and FinTechs.

Open APIs, instant payments, blockchain, & regulatory standardization are enabling the new payments ecosystem

  • Open APIs are the key enablers of the new ecosystem as they facilitate collaboration and data sharing leading to agility   in developing new innovative services.
  • Instant payments are expected to provide central infrastructure enabling faster transfer and collection of payments for customers in the new ecosystem.
  • In cross-border payments, banks are experimenting internally with blockchain to develop scalable digital payments platforms.
  • While technology aids collaboration between different players, there are issues—such as a lack of harmonization and standardization—that are slowing ecosystem development.

Collaboration and open systems threaten security within corporate treasuries

  • The price of increasing collaboration among industry stakeholders in the new payments ecosystem could be an increase in cybersecurity vulnerabilities.
  • In our survey for WPR 2017, bank executives ranked distributed denial of service (DDOS) attacks (50.0%) and customer payments fraud (31.3%) as the top two security challenges they face.
  • The most important moves various stakeholders can make to improve cybersecurity are to evaluate safety from multiple network sources, ensure regulatory compliance, train staff, and review partners’ system.
  • Lack of standardization is a key vulnerability. It is caused by the diverse standards of different national regulators and different interpretation of regulations.
    • Multinational banks and corporations find this a challenge and require better industrywide standardization and harmonization of regulations

New payments ecosystem: path forward is unclear

  • The new payments ecosystem is still nascent and the path forward ambiguous. Therefore, all stakeholders must collaborate to implement appropriate measures as they prepare for an uncertain outlook and overcome challenges.
  • The new ecosystem might not address all challenges faced by stakeholders, and they must collaboratively try to find solutions to overcome those challenges.

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