Are you ready for the new payments ecosystem?
by Jack Large
The World Payments Report 2017 from Capgemin and BNP Paribas concluded that “a new payments ecosystem is emerging, created by higher corporate and consumer expectations of value-added services, the ever changing regulatory landscape, emergence of fintechs and an increase in payments enabling technologies.”
They believe that it is time to update the payments business models which are causing structural changes in the industry due to the fintech pressure on the industry and the banks’ responses to these challenges, see figure below:
New payment systems patform
The WPR argues that a new conceptual model of collaborative banking platforms is emerging which will could look something like this (although they do accept that this only one of many possible scenarios):
The value proposition
This increased collaboration and partnership activity of the new permanent systems ecosystem will create business value for all stakeholders:corporates and consumers, banks and fintechs:
Open APIs are the new ecosystem enablers.
The WPR describes progress of open APIs - see figure below - and that, “Although to date APIs have been more commonly deployed in the retail payments market, open APIs can become a standardisation tool for corporate treasurers, enabling them to seamlessly integrate systems such as business intelligence, ERP, banking applications, and accounting across the cash and treasury management function. The implementation of open APIs also provides quick and flexible can play options for corporate treasurers to easily integrate any new product or service.”
Key open API initiatives across the world, 2017
Role of instant payment use
The World Payments Report highlights that one critical component in the new payment systems ecosystem will be the use of instant payments across all customer segments:
CTMfile take: The new payment ecosystem that the World Payments Report 2017 proposes is a revolution that offers huge opportunities for businesses world-wide to transform their business and enter new markets. Detailed reading of the World Payments Report 2017 is must for all corporate treasury department
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