by Dominic Broom, Head of Treasury Services EMEA, BNY Mellon
The global payments business is being significantly and rapidly reshaped by a number of market forces and developments. Indeed, such changes are already in motion, and will usher in a new era of payments by 2020. Dominic Broom, Head of Treasury Services EMEA at BNY Mellon, examines these drivers and the need for banks to act now, if they are to grasp the opportunities on offer in the evolving world of global payments.
The payments environment in 2020 will look considerably different from that which we know today. Although change is multifaceted, a number of key factors are responsible, and the speed and extent to which they are altering the payments business is expected to gather momentum.
Firstly, post-crisis regulations and compliance continue to dominate headlines, and their current and future impact on the payments space shows no sign of dissipating. Secondly, the payments market is becoming increasingly competitive, transformed by a variety of new players entering the market and introducing innovative payments solutions. Thirdly, economic growth in emerging markets is leading to a geographic shift in payment flows, and is driving cross-border transaction volumes to ever greater heights. Finally, technological innovation is fuelling new payment possibilities – with regard to efficiency, accessibility, immediacy and reach – and influencing the way in which payment solutions are delivered.