Payments represent the lifeblood of business success. And business success, like payments, is inherently complex.
\nThis inherent complexity, arising because today\u2019s payments sit at the intersection of technology, finance, regulation, and end-user behavior, can impede businesses\u2019 ability to maximize revenue.
\n\u201cThe payments industry has moved faster, technology has changed, consumer needs and experiences, and innovation have all changed significantly, not just along the last 20 years, but in the last three to five years,\u201d Laura Miller, chief revenue officer and global head of eCommerce at Nuvei, told PYMNTS.
\nMiller said the complexity of payments, payment analytics and risk management represent the three \u201cmost significant\u201d pain points that businesses must overcome to unlock revenue potential through payments optimization.
\nBut navigating the labyrinth of options, regulations and risks composing today\u2019s payments landscape is far from easy, even for the most sophisticated and forward-thinking firms.
\nOne of the most significant hurdles in payment optimization is the sheer complexity of the payments industry. Over the past few years, particularly accelerated by the COVID-19 pandemic, consumer expectations have evolved. Customers now demand the ability to pay anywhere, anytime, in a safe and secure manner. However, with this convenience comes a host of challenges.
\n\u201cThe payment experience can be daunting for consumers,\u201d Miller said. \u201cFrom error messages to internet stability, and the vast array of payment options, each of these factors can either enhance or hinder the customer experience.\u201d The proliferation of global payment methods adds another layer of complexity, making it imperative for businesses to approach the payment process holistically.
\nNuvei recognizes these challenges, Miller said, noting the company has developed pretransaction tools such as smart routing and adaptive approvals to streamline payment transactions. These tools not only reduce complexity but also improve transaction success rates, with some clients seeing a 5% increase in successful transactions.
\nAt the same time, the vast array of payment options available today presents a double-edged sword for businesses. While offering multiple payment methods can attract a broader customer base, it can also lead to confusion and inefficiencies. Striking the right balance between choice and operational efficiency is crucial.
\n\u201cThere\u2019s always a trade-off,\u201d Miller said. \u201cThe more choice, the more confusing it can be for consumers.\u201d
\nShe added that by embracing a localized approach and identifying the optimal alternative payment methods for their specific markets, businesses can present the right payment options to the right consumers, enhancing the overall customer experience.
\nIn the digital age, data is abundant, but leveraging this data effectively remains a critical issue for many businesses. According to Miller, nearly a third of businesses report that limited data visibility is a missed opportunity to boost revenue. The key lies in using this data to improve payment processes and, ultimately, customer satisfaction.
\nRisk management remains a cornerstone of payment processing. As the industry evolves, so do the risks, particularly in the form of fraud. \u201cBusinesses face substantial financial losses due to fraud, which can amount to billions of dollars annually,\u201d Miller warned, noting that fraud not only impacts the bottom line but also erodes customer trust and loyalty.
\nLooking ahead, Miller highlighted three key trends that are set to revolutionize payment optimization: artificial intelligence (AI) and machine learning, biometrics and contextual payments.
\nAI and machine learning are already playing a role in enhancing fraud detection and personalizing payment experiences. By automating processes, these technologies enable businesses to realize revenue faster and with greater accuracy. Meanwhile, biometrics, particularly in authentication, promises to simplify and speed up payment processes while enhancing security.
\nPerhaps the most exciting development is the rise of contextual payments, which Miller described as a way to enable and automate payments during personal moments.
\n\u201cContextual payments create an emotional connection for consumers, making them feel confident in their purchases,\u201d Miller said, citing as an example an end user watching their favorite show and instantly purchasing items featured on screen, or seamlessly paying for services through a mobile device while on the go. This trend has the potential to transform the way consumers interact with businesses, she added, making payments a more integrated and intuitive part of everyday life.
\nThe post Gain Without the Pain: Nuvei Head of eComm on What\u2019s Driving Payments Optimization appeared first on PYMNTS.com.
\n", "content_text": "Payments represent the lifeblood of business success. And business success, like payments, is inherently complex. \nThis inherent complexity, arising because today\u2019s payments sit at the intersection of technology, finance, regulation, and end-user behavior, can impede businesses\u2019 ability to maximize revenue.\n\u201cThe payments industry has moved faster, technology has changed, consumer needs and experiences, and innovation have all changed significantly, not just along the last 20 years, but in the last three to five years,\u201d Laura Miller, chief revenue officer and global head of eCommerce at Nuvei, told PYMNTS. \nMiller said the complexity of payments, payment analytics and risk management represent the three \u201cmost significant\u201d pain points that businesses must overcome to unlock revenue potential through payments optimization. \nBut navigating the labyrinth of options, regulations and risks composing today\u2019s payments landscape is far from easy, even for the most sophisticated and forward-thinking firms. \nManaging the Complexity of Payments\nOne of the most significant hurdles in payment optimization is the sheer complexity of the payments industry. Over the past few years, particularly accelerated by the COVID-19 pandemic, consumer expectations have evolved. Customers now demand the ability to pay anywhere, anytime, in a safe and secure manner. However, with this convenience comes a host of challenges.\n\u201cThe payment experience can be daunting for consumers,\u201d Miller said. \u201cFrom error messages to internet stability, and the vast array of payment options, each of these factors can either enhance or hinder the customer experience.\u201d The proliferation of global payment methods adds another layer of complexity, making it imperative for businesses to approach the payment process holistically.\nNuvei recognizes these challenges, Miller said, noting the company has developed pretransaction tools such as smart routing and adaptive approvals to streamline payment transactions. These tools not only reduce complexity but also improve transaction success rates, with some clients seeing a 5% increase in successful transactions.\nAt the same time, the vast array of payment options available today presents a double-edged sword for businesses. While offering multiple payment methods can attract a broader customer base, it can also lead to confusion and inefficiencies. Striking the right balance between choice and operational efficiency is crucial.\n\u201cThere\u2019s always a trade-off,\u201d Miller said. \u201cThe more choice, the more confusing it can be for consumers.\u201d \nShe added that by embracing a localized approach and identifying the optimal alternative payment methods for their specific markets, businesses can present the right payment options to the right consumers, enhancing the overall customer experience.\nPower of Payment Analytics\nIn the digital age, data is abundant, but leveraging this data effectively remains a critical issue for many businesses. According to Miller, nearly a third of businesses report that limited data visibility is a missed opportunity to boost revenue. The key lies in using this data to improve payment processes and, ultimately, customer satisfaction.\nRisk management remains a cornerstone of payment processing. As the industry evolves, so do the risks, particularly in the form of fraud. \u201cBusinesses face substantial financial losses due to fraud, which can amount to billions of dollars annually,\u201d Miller warned, noting that fraud not only impacts the bottom line but also erodes customer trust and loyalty.\nLooking ahead, Miller highlighted three key trends that are set to revolutionize payment optimization: artificial intelligence (AI) and machine learning, biometrics and contextual payments.\nAI and machine learning are already playing a role in enhancing fraud detection and personalizing payment experiences. By automating processes, these technologies enable businesses to realize revenue faster and with greater accuracy. Meanwhile, biometrics, particularly in authentication, promises to simplify and speed up payment processes while enhancing security.\nPerhaps the most exciting development is the rise of contextual payments, which Miller described as a way to enable and automate payments during personal moments. \n\u201cContextual payments create an emotional connection for consumers, making them feel confident in their purchases,\u201d Miller said, citing as an example an end user watching their favorite show and instantly purchasing items featured on screen, or seamlessly paying for services through a mobile device while on the go. This trend has the potential to transform the way consumers interact with businesses, she added, making payments a more integrated and intuitive part of everyday life.\nThe post Gain Without the Pain: Nuvei Head of eComm on What\u2019s Driving Payments Optimization appeared first on PYMNTS.com.", "date_published": "2024-08-14T04:02:28-04:00", "date_modified": "2024-08-13T21:19:28-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/Nuvei-payments-orchestration.jpg", "tags": [ "AI", "artificial intelligence", "Contextual Payments", "data analytics", "Featured News", "Laura Miller", "machine learning", "News", "Nuvei", "payment options", "Payments Innovation", "payments optimization", "Payments Processing", "personalization", "PYMNTS News", "pymnts tv", "risk management", "video" ] }, { "id": "https://www.pymnts.com/?p=2043207", "url": "https://www.pymnts.com/news/payments-innovation/2024/stripe-offers-adaptive-pricing-to-apac-latam-merchants/", "title": "Stripe Offers Adaptive Pricing to APAC/LatAm Merchants", "content_html": "Stripe says it wants to help merchants show their buyers prices in local currencies.
\nTo that end, the payments company announced Wednesday (Aug. 7) that it is introducing adaptive pricing for businesses in Asia Pacific and Latin America, letting businesses automatically show pricing in local currencies for buyers in more than 150 countries.
\n\u201cOnline shoppers are purchasing more goods internationally, but it\u2019s difficult for them to pay how they want and are often in the dark about how much they\u2019ll be charged,\u201d the company said in a news release provided to PYMNTS.
\n\u201cAnd it\u2019s complicated for merchants to show their customers how much they\u2019d be paying in their local currency and with their preferred payment method. For example, to enable some local payment methods for their buyers, merchants must show prices in those buyers\u2019 local currencies.\u201d
\nStripe said it has tested the effectiveness of adaptive pricing in the U.S., U.K., Canada and the European Union, and found that it led to an average 17.8% increase in cross-border revenue for businesses. And 90% of customers checked out in their local currency when given the choice.
\nOffering people more choices when it comes time to pay can help cultivate relationships with consumers, research by PYMNTS Intelligence has found.\u00a0
\nAccording to last year\u2019s \u201cConsumer Inflation Sentiment: The False Appeal of Deal-Chasing Consumers,\u201d 16% of consumers cited the ability to use their preferred payment methods as a factor influencing their decision on where to make their most recent purchase.
\n\u201cWhatever calculus the user performs to determine the payment methods that they want to use, they want more options across more merchants,\u201d Drew Olson, senior director at Google Pay, told PYMNTS CEO Karen Webster in December.
\nAnd that calculus isn\u2019t just happening online. In another 2023 interview, George Hanson, then chief digital officer at Panera Bread, said the fast-casual eatery\u2019s addition of biometric payments was critical to meeting diners\u2019 demand for frictionless transactions.
\n\u201cWe\u2019re leveraging what the guests have told us and what they continue to show us, which is that they\u2019ve increased their digital adoption,\u201d Hanson said. \u201cThey expect their phone to be a part of every interaction at every access point. We\u2019re looking at all the areas that traditionally have been offline and adding value to the experience, leveraging our digital capabilities, and the guest is responding very favorably.\u201d
\nThe post Stripe Offers Adaptive Pricing to APAC/LatAm Merchants appeared first on PYMNTS.com.
\n", "content_text": "Stripe says it wants to help merchants show their buyers prices in local currencies.\nTo that end, the payments company announced Wednesday (Aug. 7) that it is introducing adaptive pricing for businesses in Asia Pacific and Latin America, letting businesses automatically show pricing in local currencies for buyers in more than 150 countries.\n\u201cOnline shoppers are purchasing more goods internationally, but it\u2019s difficult for them to pay how they want and are often in the dark about how much they\u2019ll be charged,\u201d the company said in a news release provided to PYMNTS.\n\u201cAnd it\u2019s complicated for merchants to show their customers how much they\u2019d be paying in their local currency and with their preferred payment method. For example, to enable some local payment methods for their buyers, merchants must show prices in those buyers\u2019 local currencies.\u201d \nStripe said it has tested the effectiveness of adaptive pricing in the U.S., U.K., Canada and the European Union, and found that it led to an average 17.8% increase in cross-border revenue for businesses. And 90% of customers checked out in their local currency when given the choice.\nOffering people more choices when it comes time to pay can help cultivate relationships with consumers, research by PYMNTS Intelligence has found.\u00a0\nAccording to last year\u2019s \u201cConsumer Inflation Sentiment: The False Appeal of Deal-Chasing Consumers,\u201d 16% of consumers cited the ability to use their preferred payment methods as a factor influencing their decision on where to make their most recent purchase.\n\u201cWhatever calculus the user performs to determine the payment methods that they want to use, they want more options across more merchants,\u201d Drew Olson, senior director at Google Pay, told PYMNTS CEO Karen Webster in December.\nAnd that calculus isn\u2019t just happening online. In another 2023 interview, George Hanson, then chief digital officer at Panera Bread, said the fast-casual eatery\u2019s addition of biometric payments was critical to meeting diners\u2019 demand for frictionless transactions.\n\u201cWe\u2019re leveraging what the guests have told us and what they continue to show us, which is that they\u2019ve increased their digital adoption,\u201d Hanson said. \u201cThey expect their phone to be a part of every interaction at every access point. We\u2019re looking at all the areas that traditionally have been offline and adding value to the experience, leveraging our digital capabilities, and the guest is responding very favorably.\u201d\nThe post Stripe Offers Adaptive Pricing to APAC/LatAm Merchants appeared first on PYMNTS.com.", "date_published": "2024-08-07T17:39:27-04:00", "date_modified": "2024-08-07T17:39:27-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/Stripe-adaptive-pricing.jpg", "tags": [ "adaptive pricing", "cross-border commerce", "cross-border payments", "local currencies", "local currency", "News", "Payment Choice", "Payments Innovation", "Payments Methods", "PYMNTS News", "Stripe", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=2021321", "url": "https://www.pymnts.com/news/payments-innovation/2024/they-said-that-notable-quotables-week-july-29/", "title": "They Said That: Notable Quotables for the Week of July 29", "content_html": "It was the thick of earnings season this week, but that didn\u2019t mean PYMNTS\u2019 interviews with key executives took a break.
\nHere are some of the most notable quotables for the week ending Aug. 2 in case you missed them.
\nWe started the week with the latest installment in our \u201cA Day in the Life of a CFO\u201d series featuring an interview with CSG Chief Financial Officer Hai Tran, who told PYMNTS in \u201cCSG CFO: \u2018True Decision Support\u2019 Is Digital Transformation\u2019s Holy Grail\u201d that the digital transformation sweeping across industries has impacted the finance function.
\n\u201cThe holy grail for digital transformation is to get to true decision support, where we\u2019re really providing data-driven optionality and information and choices; where we fully analyze the implications of the path that we select,\u201d Tran said, noting that \u201cmost companies don\u2019t get there \u2026 you have to bring institutional knowledge to bear, and that\u2019s where experience matters.\u201d
\nThen we went for a deep dive into our \u201cWhat\u2019s Next in Payments\u201d series with
\nIn an interview for \u201cMaverick COO Says Embedded Finance Drives Growth and Personalization in Digital Ecosystems,\u201d Maverick Payments Chief Operating Officer Ben Griefer told PYMNTS that the integration of financial products and services into digital ecosystems is transforming commerce.
\n\u201cWith the advancements of technology and the platforms businesses rely on to run their operations, they are looking to integrate financial products to give their customer base more value,\u201d Griefer said.
\n\u201cOn the flip side, it ultimately drives more revenue,\u201d he added.
\nData found its way into our series as well. In \u201cAll Signal, No Noise: How Item-Level Data Brings Retail and Banking Intelligence Together,\u201d we found that unification is the key to unlocking maximum data potential, according to Banyan Chief Commercial Officer Mike Minelli.
\n\u201cUnifying data views starts with recognizing that both banks and merchants are dealing with the same customer, but from different perspectives,\u201d Minelli said. \u201cThe key is that they\u2019re starting to realize they can help each other by providing signals.\u201d
\nEmbedded finance is shaping up to be one of the most talked-about trends of the year so far. In \u201cMastercard Sees Embedded Finance as Revolutionizing Digital Payments,\u201d Jennifer Marriner, executive vice president, Global Acceptance Solutions, at Mastercard, said: \u201cEmbedding [payments and financial products] across the value chain and within all of the experiences that a customer is going through in that commerce environment is incredibly important.\u201d
\n\u201cB2B transactions have traditionally had a slower approval process, and B2B players have been slower to adopt new technology,\u201d she added. \u201cBut what we\u2019re seeing with a shift to digital is that there is now more data, more controls, stronger authentication coming into that B2B space, all the while bringing down the cost and improving the risk models. We\u2019re definitely seeing on the B2B side a realization that there\u2019s a way they can streamline their business through embedded finance.\u201d
\nWe picked up the international action later in the week with Debo Sen, head of payments at Citi Services. In \u201cCiti Services Head of Payments Says Instant Is In as Global Dynamics Shift,\u201d Sen highlighted the rapid adoption of these new payment rails in regions like Asia-Pacific and Latin America, with India and Brazil leading the charge.
\nIn India, about 85% of all payments are made in real time, thanks to the Unified Payments Interface (UPI) system, a testament to the country\u2019s leap in digital payments infrastructure. Brazil follows closely with nearly 80% adoption. But this trend is not limited to emerging markets, she added, noting that the United States and the European Union are also advancing regulations and infrastructure to support real-time payments.
\n\u201cWe\u2019ve been tracking the momentum in instant payments, or real-time payments, for a long time,\u201d Sen said.
\n\u201cThe interesting thing is there is always a lot of conversation as to whether instant payments will cannibalize other methods of payment \u2014 but in fact, it is digitizing cash in those economies and eliminating cash in many cases,\u201d she added.
\nAnd we ended the week with taxes. In \u201cMind Your B\u2019s and P\u2019s: IRS Notices and Penalties Loom for Unprepared Firms This Fall,\u201d Wendy Walker, vice president of Regulatory Affairs at Sovos, said when information is missing or doesn\u2019t match IRS records, hefty fines can accrue \u2014 and the administrative burden of keeping track of all those details is considerable. A proactive approach can help head errors off at the pass.
\n\u201cIf you\u2019re in a company that does anti-money laundering practices or know your customer and you\u2019re collecting a bunch of that information, unless you are actually verifying that TIN to the IRS database, verifying to [any] other database doesn\u2019t matter from an IRS perspective,\u201d Walker said.
\nThe post They Said That: Notable Quotables for the Week of July 29 appeared first on PYMNTS.com.
\n", "content_text": "It was the thick of earnings season this week, but that didn\u2019t mean PYMNTS\u2019 interviews with key executives took a break.\nHere are some of the most notable quotables for the week ending Aug. 2 in case you missed them.\nWe started the week with the latest installment in our \u201cA Day in the Life of a CFO\u201d series featuring an interview with CSG Chief Financial Officer Hai Tran, who told PYMNTS in \u201cCSG CFO: \u2018True Decision Support\u2019 Is Digital Transformation\u2019s Holy Grail\u201d that the digital transformation sweeping across industries has impacted the finance function.\n\u201cThe holy grail for digital transformation is to get to true decision support, where we\u2019re really providing data-driven optionality and information and choices; where we fully analyze the implications of the path that we select,\u201d Tran said, noting that \u201cmost companies don\u2019t get there \u2026 you have to bring institutional knowledge to bear, and that\u2019s where experience matters.\u201d\nThen we went for a deep dive into our \u201cWhat\u2019s Next in Payments\u201d series with\nIn an interview for \u201cMaverick COO Says Embedded Finance Drives Growth and Personalization in Digital Ecosystems,\u201d Maverick Payments Chief Operating Officer Ben Griefer told PYMNTS that the integration of financial products and services into digital ecosystems is transforming commerce.\n\u201cWith the advancements of technology and the platforms businesses rely on to run their operations, they are looking to integrate financial products to give their customer base more value,\u201d Griefer said.\n\u201cOn the flip side, it ultimately drives more revenue,\u201d he added.\nData found its way into our series as well. In \u201cAll Signal, No Noise: How Item-Level Data Brings Retail and Banking Intelligence Together,\u201d we found that unification is the key to unlocking maximum data potential, according to Banyan Chief Commercial Officer Mike Minelli.\n\u201cUnifying data views starts with recognizing that both banks and merchants are dealing with the same customer, but from different perspectives,\u201d Minelli said. \u201cThe key is that they\u2019re starting to realize they can help each other by providing signals.\u201d\nEmbedded finance is shaping up to be one of the most talked-about trends of the year so far. In \u201cMastercard Sees Embedded Finance as Revolutionizing Digital Payments,\u201d Jennifer Marriner, executive vice president, Global Acceptance Solutions, at Mastercard, said: \u201cEmbedding [payments and financial products] across the value chain and within all of the experiences that a customer is going through in that commerce environment is incredibly important.\u201d\n\u201cB2B transactions have traditionally had a slower approval process, and B2B players have been slower to adopt new technology,\u201d she added. \u201cBut what we\u2019re seeing with a shift to digital is that there is now more data, more controls, stronger authentication coming into that B2B space, all the while bringing down the cost and improving the risk models. We\u2019re definitely seeing on the B2B side a realization that there\u2019s a way they can streamline their business through embedded finance.\u201d\nWe picked up the international action later in the week with Debo Sen, head of payments at Citi Services. In \u201cCiti Services Head of Payments Says Instant Is In as Global Dynamics Shift,\u201d Sen highlighted the rapid adoption of these new payment rails in regions like Asia-Pacific and Latin America, with India and Brazil leading the charge.\nIn India, about 85% of all payments are made in real time, thanks to the Unified Payments Interface (UPI) system, a testament to the country\u2019s leap in digital payments infrastructure. Brazil follows closely with nearly 80% adoption. But this trend is not limited to emerging markets, she added, noting that the United States and the European Union are also advancing regulations and infrastructure to support real-time payments.\n\u201cWe\u2019ve been tracking the momentum in instant payments, or real-time payments, for a long time,\u201d Sen said.\n\u201cThe interesting thing is there is always a lot of conversation as to whether instant payments will cannibalize other methods of payment \u2014 but in fact, it is digitizing cash in those economies and eliminating cash in many cases,\u201d she added.\nAnd we ended the week with taxes. In \u201cMind Your B\u2019s and P\u2019s: IRS Notices and Penalties Loom for Unprepared Firms This Fall,\u201d Wendy Walker, vice president of Regulatory Affairs at Sovos, said when information is missing or doesn\u2019t match IRS records, hefty fines can accrue \u2014 and the administrative burden of keeping track of all those details is considerable. A proactive approach can help head errors off at the pass.\n\u201cIf you\u2019re in a company that does anti-money laundering practices or know your customer and you\u2019re collecting a bunch of that information, unless you are actually verifying that TIN to the IRS database, verifying to [any] other database doesn\u2019t matter from an IRS perspective,\u201d Walker said.\nThe post They Said That: Notable Quotables for the Week of July 29 appeared first on PYMNTS.com.", "date_published": "2024-08-02T16:08:12-04:00", "date_modified": "2024-08-02T16:08:12-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/payments-innovation-digital-transformation.jpg", "tags": [ "B2B", "Banyan", "Ben Griefer", "CFO", "Citi Services", "CSG", "data", "Debo Sen", "Digital Payments", "digital transformation", "embedded finance", "Hai Tran", "Jennifer Marriner", "MasterCard", "Maverick Payments", "Mike Minelli", "News", "PYMNTS News", "real time payments", "Sovos", "taxes", "Technology", "Wendy Walker", "Payments Innovation" ] }, { "id": "https://www.pymnts.com/?p=2020605", "url": "https://www.pymnts.com/news/payments-innovation/2024/tokenization-rise-offers-new-ways-monetize-data-real-world-assets/", "title": "Tokenization\u2019s Rise Offers New Ways to Monetize Data and Real World Assets", "content_html": "The concept behind tokenization is simple.
\nTokenization is a tech-enabled way to safeguard sensitive information by replacing it with non-sensitive, scrambled strings of information.
\nThe practice of tokenization within the financial services realm might be most readily apparent with the tens of billions of tokens issued by payments networks, where progress is charted in announcements, as well as management commentary on quarterly earnings calls.
\nVisa crossed the 10 billion token mark in June. The company noted that replacing sensitive consumer-level data with a cryptographic key, or token, saved $650 million in fraud in the prior year while driving over $40 billion in incremental eCommerce revenue for businesses globally.
\nIn terms of being a business driver, \u201cin Acceptance Solutions, third-quarter growth was driven by increasing utilization across both token and eCommerce-related services,\u201d Visa CEO Ryan McInerney noted on an earnings call.
\nMastercard, for its part, notched its own milestones. During an earnings call, CEO Michael Miebach told listeners that replacing payment credentials with a digitally secure token has had a positive impact on commerce.
\n\u201cWhen deployed, fraud rates decrease, and approval rates improve,\u201d he said. \u201cSo, launching a decade ago, the technology has been broadly adopted around the world. In fact, we surpassed 22 billion tokenized transactions in the first half of 2024, up 49% versus a year ago.\u201d
\nTokenization, Miebach said, also \u201cmakes checkout more secure\u2026 We are working with our merchants and bank partners to drive adoption. Click-to-Pay transactions more than doubled year over year in the first half of 2024.\u201d
\nThe advent of tokenization, he said, gives Mastercard \u201can opportunity to build a whole set of services on top of the basic token that we can price for, and that we feel we should price for, because they drive a better outcome in terms of better approval rates, lower fraud and so forth for our customers.\u201d
\nThredd CEO Jim McCarthy told PYMNTS last month that tokens, once device-specific or wallet-specific (as had been the case with Apple Pay) have evolved \u201cinto not just the digital credential, but the programmable one.\u201d The token can now take on different \u201ccharacteristics,\u201d depending on where and how it\u2019s being used \u2014 as a credit, debit, or buy now, pay later (BNPL) option.
\nThe programmable nature of tokens, underpinned by blockchain and smart technologies, means that data, assets and even payments can be executed with improved security and sets of rules governing what\u2019s changing hands and when across verticals as diverse as real estate, gaming and commodities markets.
\nLast summer, Mastercard launched its Mastercard Multi-Token Network to help foster the creation of these tokens (and conduct screening and transaction monitoring) to support new business models across various sectors using tokenized bank deposits.
\nTokenization platform OpenEden announced in a Thursday (Aug. 1) press release that it will bring tokenized U.S. Treasury bills to the XRP Ledger. Ripple is investing $10 million into OpenEden\u2019s TBILL tokens as part of a larger fund that will allocate the Treasury bills provided by OpenEden and other issuers.
\nThe ledger offers automated market maker functions, which improve the liquidity of the trading itself, and simplify, in general, the exchange of assets, which in turn can open new revenue streams for financial services firms.
\nEarlier this year, the Bank for International Settlements announced its joint efforts with seven central banks \u2014 including the Federal Reserve Bank of New York \u2014 to test tokenization to improve cross-border payments.
\nJ.P. Morgan Chase is one of the largest financial institutions making forays into the tokenized space. It said last year that its tokenized collateral network facilitated its first collateral settlement for a live client over-the-counter (OTC) derivative transaction. The company said in a paper issued jointly with Oliver Wyman that \u201cdeposit tokens could further support economic activity in the digital space, including in a \u2018Web3 economy\u2019 where significant economic activity happens on shared ledgers, with tokenized asset transfers settled via deposit tokens. This digital economy would be facilitated by direct, instant and atomic exchanges between peers.\u201d
\nFor payments networks in particular, tokenized deposits represent an opportunity. Visa said the tokens in this case are \u201cthe digital representation of bank deposits where money deposited with a bank is minted on that institution\u2019s own blockchain ledger with the backing of that financial institution\u2019s balance sheet.\u201d
\nIn tandem with HSBC and Hang Seng Bank, Visa embarked on a tokenized deposit trial to settle a high-value real estate transaction and merchant/acquirer fund flows.
\nThe post Tokenization\u2019s Rise Offers New Ways to Monetize Data and Real World Assets appeared first on PYMNTS.com.
\n", "content_text": "The concept behind tokenization is simple.\nTokenization is a tech-enabled way to safeguard sensitive information by replacing it with non-sensitive, scrambled strings of information.\nThe practice of tokenization within the financial services realm might be most readily apparent with the tens of billions of tokens issued by payments networks, where progress is charted in announcements, as well as management commentary on quarterly earnings calls.\nVisa crossed the 10 billion token mark in June. The company noted that replacing sensitive consumer-level data with a cryptographic key, or token, saved $650 million in fraud in the prior year while driving over $40 billion in incremental eCommerce revenue for businesses globally.\nIn terms of being a business driver, \u201cin Acceptance Solutions, third-quarter growth was driven by increasing utilization across both token and eCommerce-related services,\u201d Visa CEO Ryan McInerney noted on an earnings call.\nMastercard, for its part, notched its own milestones. During an earnings call, CEO Michael Miebach told listeners that replacing payment credentials with a digitally secure token has had a positive impact on commerce.\n\u201cWhen deployed, fraud rates decrease, and approval rates improve,\u201d he said. \u201cSo, launching a decade ago, the technology has been broadly adopted around the world. In fact, we surpassed 22 billion tokenized transactions in the first half of 2024, up 49% versus a year ago.\u201d\nThe Monetization Potential\nTokenization, Miebach said, also \u201cmakes checkout more secure\u2026 We are working with our merchants and bank partners to drive adoption. Click-to-Pay transactions more than doubled year over year in the first half of 2024.\u201d\nThe advent of tokenization, he said, gives Mastercard \u201can opportunity to build a whole set of services on top of the basic token that we can price for, and that we feel we should price for, because they drive a better outcome in terms of better approval rates, lower fraud and so forth for our customers.\u201d\nThredd CEO Jim McCarthy told PYMNTS last month that tokens, once device-specific or wallet-specific (as had been the case with Apple Pay) have evolved \u201cinto not just the digital credential, but the programmable one.\u201d The token can now take on different \u201ccharacteristics,\u201d depending on where and how it\u2019s being used \u2014 as a credit, debit, or buy now, pay later (BNPL) option.\nThe programmable nature of tokens, underpinned by blockchain and smart technologies, means that data, assets and even payments can be executed with improved security and sets of rules governing what\u2019s changing hands and when across verticals as diverse as real estate, gaming and commodities markets.\nLast summer, Mastercard launched its Mastercard Multi-Token Network to help foster the creation of these tokens (and conduct screening and transaction monitoring) to support new business models across various sectors using tokenized bank deposits.\nTokenization platform OpenEden announced in a Thursday (Aug. 1) press release that it will bring tokenized U.S. Treasury bills to the XRP Ledger. Ripple is investing $10 million into OpenEden\u2019s TBILL tokens as part of a larger fund that will allocate the Treasury bills provided by OpenEden and other issuers.\nThe ledger offers automated market maker functions, which improve the liquidity of the trading itself, and simplify, in general, the exchange of assets, which in turn can open new revenue streams for financial services firms.\nEarlier this year, the Bank for International Settlements announced its joint efforts with seven central banks \u2014 including the Federal Reserve Bank of New York \u2014 to test tokenization to improve cross-border payments.\nJ.P. Morgan Chase is one of the largest financial institutions making forays into the tokenized space. It said last year that its tokenized collateral network facilitated its first collateral settlement for a live client over-the-counter (OTC) derivative transaction. The company said in a paper issued jointly with Oliver Wyman that \u201cdeposit tokens could further support economic activity in the digital space, including in a \u2018Web3 economy\u2019 where significant economic activity happens on shared ledgers, with tokenized asset transfers settled via deposit tokens. This digital economy would be facilitated by direct, instant and atomic exchanges between peers.\u201d\nFor payments networks in particular, tokenized deposits represent an opportunity. Visa said the tokens in this case are \u201cthe digital representation of bank deposits where money deposited with a bank is minted on that institution\u2019s own blockchain ledger with the backing of that financial institution\u2019s balance sheet.\u201d\nIn tandem with HSBC and Hang Seng Bank, Visa embarked on a tokenized deposit trial to settle a high-value real estate transaction and merchant/acquirer fund flows.\nThe post Tokenization\u2019s Rise Offers New Ways to Monetize Data and Real World Assets appeared first on PYMNTS.com.", "date_published": "2024-08-01T15:54:48-04:00", "date_modified": "2024-08-01T15:54:48-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/tokenization-blockchain-data-assets.jpg", "tags": [ "Bank for International Settlements", "BIS", "Blockchain", "digital transformation", "fraud", "jpmorgan", "MasterCard", "News", "OpenEden", "PYMNTS News", "Security", "Technology", "tokenization", "Visa", "Payments Innovation" ] }, { "id": "https://www.pymnts.com/?p=2019783", "url": "https://www.pymnts.com/news/payments-innovation/2024/j-p-morgan-collaboration-helps-startups-scale-the-innovation-economy/", "title": "J.P. Morgan: Collaboration Helps Startups Scale the Innovation Economy", "content_html": "For smaller firms and startups seeking capital \u2014 the lifeblood of growth \u2014 the last few months of 2024 are holding some promise after a long drought of high interest rates and stubborn inflation.
\nThe IPO market has rebounded, up 30% for the first half of 2024 year over year. Venture capital has also seen a 20% uptick from last year. Deal sizes have increased across sectors as diverse as artificial intelligence, healthcare technology and climate technology.
\n\u201cWe\u2019re starting to see more and renewed interest from crossover and mutual fund investors in later stage rounds \u2026 and there\u2019s a record amount of dry powder for venture capital and growth equity firms that have been kind of sitting on the sidelines,\u201d Melissa Smith, co-head of innovation economy and head of specialized industries for J.P. Morgan commercial banking, told PYMNTS.
\nLooking out to the end of the year, based on public filings and J.P. Morgan\u2019s own pipeline visibility, the current year could log $30 billion in terms of IPO volumes, above $19 billion in volume seen last year, Smith said.
\nBeyond those optimistic developments, like just about everyone else, she noted, founders are \u201ctrying to figure out where things are headed from a broader macroeconomic perspective.\u201d
\nThe prevailing wisdom is that the Federal Reserve will start lowering rates at some point during the third quarter of 2024. Against that backdrop, the U.S. economy seems like it\u2019s moving toward a soft landing.
\nBut founders must be ready for all sorts of permutations of reality and in the meantime are steering their firms through growth, investment and seed rounds, using a combination of funding and partnerships to bring their innovations to market. Preserving cash flow is imperative, and banking partners can help provide stability and visibility into day-to-day cash management, Smith said.
\nThe investment community is a tight-knit one, Smith said, adding that \u201cfounders and partners and firms are clearly constantly talking to each other, sharing ideas, seeking advice and forming powerful connections.\u201d
\nAt the center of it all lies J.P. Morgan, with a full suite of solutions and expertise to help those companies connect and innovate collectively.
\nSmith noted that \u201cwe want to, and can, holistically serve the ecosystem\u201d across portfolio companies, founders and VC partners with payments and liquidity solutions and financing alternatives.
\nBy way of example, she offered up J.P. Morgan\u2019s continued journey with Closinglock, which provides wire fraud prevention and FinTech solutions to the real estate industry. The bank has supported Closinglock from the seed stage to its current role of providing traditional banking services to the company. Beyond those interactions, J.P. Morgan has also helped Closinglock embed payments into its platform.
\nSmith said traditional banks can bring a multi-disciplinary approach to helping client firms manage cash flow and operations more efficiently \u2014 in contrast to FinTechs, which as partners, may have niche expertise but lack that broader worldview. But there\u2019s been a positive knock-on effect from the rise of FinTechs, she added, as they\u2019ve forced banks to fine-tune their own innovations and how they partner with corporate clients in the startup community.
\nThe financial institutions, she said, \u201care learning a little bit from the FinTechs and how nimble they\u2019ve been in terms of the client experiences that they have built.\u201d The banks also have inherent advantages tied to the scale and breadth of their payments and cybersecurity and risk management offerings.
\n\u201cHaving the perspective of some of the largest [client] companies in the world, and how they\u2019ve built their own infrastructure to get there, is advice and dialogue worth having with the earliest stage companies,\u201d Smith said.
\nIn the coming months and years, Smith noted, J.P. Morgan is focused on honing its digital experiences for its customer bases, improving its onboarding capabilities and offering digital end-to-end workflows to a variety of sectors and subsectors.
\n\u201cWe\u2019re not here to just be what people would consider a traditional banking provider,\u201d Smith said. \u201cWe want to be a partner to these companies, these firms, these founders in order to help meet any of their businesses\u2019 challenges or objectives and help them scale and grow \u2026 and supporting the founders as investors in the innovation economy.\u201d
\nThe post J.P. Morgan: Collaboration Helps Startups Scale the Innovation Economy appeared first on PYMNTS.com.
\n", "content_text": "For smaller firms and startups seeking capital \u2014 the lifeblood of growth \u2014 the last few months of 2024 are holding some promise after a long drought of high interest rates and stubborn inflation.\nThe IPO market has rebounded, up 30% for the first half of 2024 year over year. Venture capital has also seen a 20% uptick from last year. Deal sizes have increased across sectors as diverse as artificial intelligence, healthcare technology and climate technology.\n\u201cWe\u2019re starting to see more and renewed interest from crossover and mutual fund investors in later stage rounds \u2026 and there\u2019s a record amount of dry powder for venture capital and growth equity firms that have been kind of sitting on the sidelines,\u201d Melissa Smith, co-head of innovation economy and head of specialized industries for J.P. Morgan commercial banking, told PYMNTS.\nLooking out to the end of the year, based on public filings and J.P. Morgan\u2019s own pipeline visibility, the current year could log $30 billion in terms of IPO volumes, above $19 billion in volume seen last year, Smith said.\nBeyond those optimistic developments, like just about everyone else, she noted, founders are \u201ctrying to figure out where things are headed from a broader macroeconomic perspective.\u201d\nThe prevailing wisdom is that the Federal Reserve will start lowering rates at some point during the third quarter of 2024. Against that backdrop, the U.S. economy seems like it\u2019s moving toward a soft landing.\nServing and Shaping the Ecosystem\nBut founders must be ready for all sorts of permutations of reality and in the meantime are steering their firms through growth, investment and seed rounds, using a combination of funding and partnerships to bring their innovations to market. Preserving cash flow is imperative, and banking partners can help provide stability and visibility into day-to-day cash management, Smith said.\nThe investment community is a tight-knit one, Smith said, adding that \u201cfounders and partners and firms are clearly constantly talking to each other, sharing ideas, seeking advice and forming powerful connections.\u201d\nAt the center of it all lies J.P. Morgan, with a full suite of solutions and expertise to help those companies connect and innovate collectively.\nSmith noted that \u201cwe want to, and can, holistically serve the ecosystem\u201d across portfolio companies, founders and VC partners with payments and liquidity solutions and financing alternatives.\nBy way of example, she offered up J.P. Morgan\u2019s continued journey with Closinglock, which provides wire fraud prevention and FinTech solutions to the real estate industry. The bank has supported Closinglock from the seed stage to its current role of providing traditional banking services to the company. Beyond those interactions, J.P. Morgan has also helped Closinglock embed payments into its platform.\nSmith said traditional banks can bring a multi-disciplinary approach to helping client firms manage cash flow and operations more efficiently \u2014 in contrast to FinTechs, which as partners, may have niche expertise but lack that broader worldview. But there\u2019s been a positive knock-on effect from the rise of FinTechs, she added, as they\u2019ve forced banks to fine-tune their own innovations and how they partner with corporate clients in the startup community.\nThe financial institutions, she said, \u201care learning a little bit from the FinTechs and how nimble they\u2019ve been in terms of the client experiences that they have built.\u201d The banks also have inherent advantages tied to the scale and breadth of their payments and cybersecurity and risk management offerings.\n\u201cHaving the perspective of some of the largest [client] companies in the world, and how they\u2019ve built their own infrastructure to get there, is advice and dialogue worth having with the earliest stage companies,\u201d Smith said.\nIn the coming months and years, Smith noted, J.P. Morgan is focused on honing its digital experiences for its customer bases, improving its onboarding capabilities and offering digital end-to-end workflows to a variety of sectors and subsectors.\n\u201cWe\u2019re not here to just be what people would consider a traditional banking provider,\u201d Smith said. \u201cWe want to be a partner to these companies, these firms, these founders in order to help meet any of their businesses\u2019 challenges or objectives and help them scale and grow \u2026 and supporting the founders as investors in the innovation economy.\u201d\nThe post J.P. Morgan: Collaboration Helps Startups Scale the Innovation Economy appeared first on PYMNTS.com.", "date_published": "2024-08-01T04:00:13-04:00", "date_modified": "2024-07-31T22:07:40-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/JPMorgan-banking.jpg", "tags": [ "Banks", "cash flow management", "Closinglock", "Embedded Payments", "FinTech", "funding", "Innovation", "Investments", "jpmorgan", "Main Feature", "Melissa Smith", "News", "partnerships", "PYMNTS News", "pymnts tv", "SMBs", "startups", "video", "working capital", "Payments Innovation" ] }, { "id": "https://www.pymnts.com/?p=2019344", "url": "https://www.pymnts.com/news/payments-innovation/2024/citi-services-head-of-payments-says-instant-is-in-as-global-dynamics-shift/", "title": "Citi Services Head of Payments Says Instant Is In as Global Dynamics Shift", "content_html": "Change in payments, as in life, happens slowly and then all at once.
\nAnd as we navigate through 2024, the payments industry is undergoing transformative changes, driven by innovations spurred by the rise of new payment rails and ongoing efforts toward standardization.
\n\u201cWe\u2019ve been tracking the momentum in instant payments, or real-time payments, for a long time,\u201d Debo Sen, head of payments at Citi Services, told PYMNTS during a conversation for the series, \u201cWhat\u2019s Next in Payments: The Halftime Report.\u201d
\nSen highlighted the rapid adoption of these new payment rails in regions like Asia-Pacific (APAC) and Latin America, with India and Brazil leading the charge. In India, about 85% of all payments are now real time, thanks to the Unified Payments Interface (UPI) system, a testament to the country\u2019s leap in digital payments infrastructure.
\nBrazil follows closely, with nearly 80% adoption. But this trend is not limited to emerging markets, she added, noting that the U.S. and the European Union are also advancing regulations and infrastructure to support real-time payments.
\n\u201cThe interesting thing is there is always a lot of conversation as to whether instant payments will cannibalize other methods of payment \u2014 but in fact, it is digitizing cash in those economies and eliminating cash in many cases,\u201d Sen explained.
\nThe shift to real-time payments is driven by the demand for faster, more convenient, and secure payment options. For merchants, these new rails offer reduced transaction costs and the finality of payments, crucial for cash flow management.
\nThe immediacy of transactions also improves customer satisfaction, allowing businesses to provide quick refunds and compensate for service disruptions, such as delayed flights, thereby maintaining customer loyalty even during challenging times, Sen said, noting that Citi Services itself operates in 65-plus markets for instant payments, and is continually enhancing its cloud-based, always-on payment capabilities.
\nShe added that innovations like pay by bank, QR codes, and instant direct debits are reducing friction and costs for consumers and merchants alike.
\nStill, the transition to real-time payments and other digital payment methods necessitates significant infrastructure investments. Banks and financial institutions must upgrade their systems to handle always-on, high-volume transactions. This includes enhancing data verification processes and ensuring the security and reliability of payment networks.
\nSen pointed out that while the industry is making strides in infrastructure readiness, challenges remain, particularly in areas like account verification, which varies widely across markets. Developing consistent and efficient solutions for issues like credential management and dispute resolution is crucial for the widespread adoption of these new payment systems.
\nCross-border payments remain an area of focus for innovation. Sen explained that Citi has been working to improve the speed, cost-effectiveness and transparency of these transactions. Initiatives like Swift GPI and the adoption of ISO 20022 are pivotal in this regard. These efforts are aimed at providing richer data, reducing friction and enhancing the traceability of cross-border payments.
\nThe integration of cross-border payments with instant payment systems and digital wallets is another area where progress is being made, she added, noting that FinTech companies also play a crucial role in the payments ecosystem, driving innovation and reducing friction in processes like know-your-customer (KYC) and remittances.
\nCiti collaborates extensively with FinTechs, leveraging their capabilities to enhance its service offerings while also providing these companies with access to Citi\u2019s extensive infrastructure. This symbiotic relationship fosters a more dynamic and responsive payments environment.
\nAnd of course, any discussion of payments innovation would not be complete without touching on the ongoing migration to ISO 20022, a standard for electronic data interchange between financial institutions.
\nThis standardization effort aims to improve interoperability, reduce manual interventions, and enhance compliance capabilities. The richer, more structured data enabled by ISO 20022 will support better customer experiences, streamline reconciliation processes, and provide the foundation for new value-added services, Sen said.
\nAs the payments industry evolves, new technologies such as tokenization and smart contracts are emerging as potential game-changers.
\nSen explained that Citi has been experimenting with tokenized bank liabilities and smart contracts for trade transactions, showcasing the practical applications of these technologies. Initiatives like Project Agora, involving central banks and commercial banks, are exploring the potential of tokenized assets for cross-border payments, indicating a future where digital tokens could revolutionize the way we conduct international transactions.
\nThe post Citi Services Head of Payments Says Instant Is In as Global Dynamics Shift appeared first on PYMNTS.com.
\n", "content_text": "Change in payments, as in life, happens slowly and then all at once.\nAnd as we navigate through 2024, the payments industry is undergoing transformative changes, driven by innovations spurred by the rise of new payment rails and ongoing efforts toward standardization.\n\u201cWe\u2019ve been tracking the momentum in instant payments, or real-time payments, for a long time,\u201d Debo Sen, head of payments at Citi Services, told PYMNTS during a conversation for the series, \u201cWhat\u2019s Next in Payments: The Halftime Report.\u201d\nSen highlighted the rapid adoption of these new payment rails in regions like Asia-Pacific (APAC) and Latin America, with India and Brazil leading the charge. In India, about 85% of all payments are now real time, thanks to the Unified Payments Interface (UPI) system, a testament to the country\u2019s leap in digital payments infrastructure.\nBrazil follows closely, with nearly 80% adoption. But this trend is not limited to emerging markets, she added, noting that the U.S. and the European Union are also advancing regulations and infrastructure to support real-time payments.\n\u201cThe interesting thing is there is always a lot of conversation as to whether instant payments will cannibalize other methods of payment \u2014 but in fact, it is digitizing cash in those economies and eliminating cash in many cases,\u201d Sen explained.\nEnhancing Payment Experiences and Benefits\nThe shift to real-time payments is driven by the demand for faster, more convenient, and secure payment options. For merchants, these new rails offer reduced transaction costs and the finality of payments, crucial for cash flow management.\nThe immediacy of transactions also improves customer satisfaction, allowing businesses to provide quick refunds and compensate for service disruptions, such as delayed flights, thereby maintaining customer loyalty even during challenging times, Sen said, noting that Citi Services itself operates in 65-plus markets for instant payments, and is continually enhancing its cloud-based, always-on payment capabilities.\nShe added that innovations like pay by bank, QR codes, and instant direct debits are reducing friction and costs for consumers and merchants alike.\nStill, the transition to real-time payments and other digital payment methods necessitates significant infrastructure investments. Banks and financial institutions must upgrade their systems to handle always-on, high-volume transactions. This includes enhancing data verification processes and ensuring the security and reliability of payment networks.\nSen pointed out that while the industry is making strides in infrastructure readiness, challenges remain, particularly in areas like account verification, which varies widely across markets. Developing consistent and efficient solutions for issues like credential management and dispute resolution is crucial for the widespread adoption of these new payment systems.\nPath to ISO 20022 Standardization\nCross-border payments remain an area of focus for innovation. Sen explained that Citi has been working to improve the speed, cost-effectiveness and transparency of these transactions. Initiatives like Swift GPI and the adoption of ISO 20022 are pivotal in this regard. These efforts are aimed at providing richer data, reducing friction and enhancing the traceability of cross-border payments.\nThe integration of cross-border payments with instant payment systems and digital wallets is another area where progress is being made, she added, noting that FinTech companies also play a crucial role in the payments ecosystem, driving innovation and reducing friction in processes like know-your-customer (KYC) and remittances.\nCiti collaborates extensively with FinTechs, leveraging their capabilities to enhance its service offerings while also providing these companies with access to Citi\u2019s extensive infrastructure. This symbiotic relationship fosters a more dynamic and responsive payments environment.\nAnd of course, any discussion of payments innovation would not be complete without touching on the ongoing migration to ISO 20022, a standard for electronic data interchange between financial institutions.\nThis standardization effort aims to improve interoperability, reduce manual interventions, and enhance compliance capabilities. The richer, more structured data enabled by ISO 20022 will support better customer experiences, streamline reconciliation processes, and provide the foundation for new value-added services, Sen said.\nAs the payments industry evolves, new technologies such as tokenization and smart contracts are emerging as potential game-changers.\nSen explained that Citi has been experimenting with tokenized bank liabilities and smart contracts for trade transactions, showcasing the practical applications of these technologies. Initiatives like Project Agora, involving central banks and commercial banks, are exploring the potential of tokenized assets for cross-border payments, indicating a future where digital tokens could revolutionize the way we conduct international transactions.\nThe post Citi Services Head of Payments Says Instant Is In as Global Dynamics Shift appeared first on PYMNTS.com.", "date_published": "2024-07-31T04:02:24-04:00", "date_modified": "2024-07-30T22:38:48-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/Citi-Sen.jpg", "tags": [ "Citi", "Citi Services", "Debo Sen", "Featured News", "FinTech", "instant payments", "ISO 20022", "News", "PYMNTS News", "pymnts tv", "real time payments", "SWIFT gpi", "tokenization", "video", "WhatsNextInPaymentsSeries", "What\u2019s Next In Payments: The Halftime Report 2024", "Payments Innovation" ] }, { "id": "https://www.pymnts.com/?p=2018774", "url": "https://www.pymnts.com/news/payments-innovation/2024/maverick-coo-says-embedded-finance-drives-growth-and-personalization-in-digital-ecosystems/", "title": "Maverick COO Says Embedded Finance Drives Growth and Personalization in Digital Ecosystems", "content_html": "The integration of financial products and services into digital ecosystems is transforming commerce.
\n\u201cWith the advancements of technology and the platforms businesses rely on to run their operations, they are looking to integrate financial products to give their customer base more value,\u201d Ben Griefer,\u00a0COO at Maverick Payments, told PYMNTS for the series \u201cWhat\u2019s Next in Payments.\u201d
\n\u201cOn the flip side, it ultimately drives more revenue,\u201d he added.
\nWhile historically, non-financial platforms and applications were hesitant to venture into financial services, steering clear of payments, banking products and lending due to the complexities involved, these barriers have diminished as turnkey technology marches on.
\nThe term \u201cembedded finance\u201d can include anything from offering loans at the point of sale to providing insurance within a product purchase journey. The goal is to create a more seamless and convenient experience for customers, who can access these services without leaving the platform they are already using.
\nPlatforms like customer relationship management (CRM) systems and shopping cart platforms, which businesses rely on for daily operations, are now able to offer financial products. This integration fosters a \u201cstickiness factor,\u201d as Griefer described it, enhancing customer loyalty and retention.
\nThe embedded finance model also allows businesses to collect data on customer behaviors, he noted, such as spending habits and chargeback history. This data can be used to offer personalized financial products and services, such as tailored loan offers or customized insurance plans.
\nBy leveraging this data, businesses can better understand their customers\u2019 needs and provide more relevant and timely financial solutions. This personalization not only improves customer satisfaction but also increases the likelihood of customers using these services.
\nAnd for merchants, the integration of embedded finance presents lucrative opportunities, especially in the card-not-present eCommerce sector.
\nAccording to Griefer, platforms that focus on subscription management, eCommerce websites, and similar services are looking to offer financial products like fraud prevention, chargeback management and payment processing. The key to success in these integrations lies in a frictionless onboarding process, which is crucial for achieving high adoption rates.
\nThe adoption of embedded finance varies, with payments, lending and general banking products being the most prevalent. Griefer explained that the adoption often depends on the specific needs of the platform\u2019s end users. For instance, business-to-business (B2B) platforms may see more adoption in commercial card issuance, while eCommerce platforms may focus on payments and fraud prevention.
\nA critical concern for businesses considering embedded finance solutions is scalability. Griefer emphasized that these solutions are highly scalable, leveraging the infrastructure and technology of established payment processors, such as Maverick Payments. This approach allows businesses to white-label payment systems, thereby benefiting from robust compliance and regulatory frameworks without the associated overhead.
\n\u201cIt\u2019s extremely scalable,\u201d Griefer said, \u201cbecause businesses can focus on their core offerings while relying on our infrastructure for payments and compliance.\u201d
\nAnd market sentiment around embedded finance is positive. As businesses become more educated about the benefits, there is a growing interest in integrating these solutions. While platforms from the software-as-a-service (SaaS) world may not have a traditional payments background, they recognize the value of offering financial services to supplement their core products, Griefer explained.
\nThat\u2019s why, as embedded finance continues to evolve, Griefer predicts further integration of financial services into non-financial platforms. \u201cThere\u2019s a huge need for businesses to have more tools and services at their fingertips,\u201d he said, pointing to the potential expansion into areas like payroll and more sophisticated banking services. The trend suggests that businesses will seek to offer a consolidated system that can handle various financial and operational needs, providing a comprehensive solution for their customers.
\n\n
The post Maverick COO Says Embedded Finance Drives Growth and Personalization in Digital Ecosystems appeared first on PYMNTS.com.
\n", "content_text": "The integration of financial products and services into digital ecosystems is transforming commerce. \n\u201cWith the advancements of technology and the platforms businesses rely on to run their operations, they are looking to integrate financial products to give their customer base more value,\u201d Ben Griefer,\u00a0COO at Maverick Payments, told PYMNTS for the series \u201cWhat\u2019s Next in Payments.\u201d\n\u201cOn the flip side, it ultimately drives more revenue,\u201d he added. \nWhile historically, non-financial platforms and applications were hesitant to venture into financial services, steering clear of payments, banking products and lending due to the complexities involved, these barriers have diminished as turnkey technology marches on.\nThe term \u201cembedded finance\u201d can include anything from offering loans at the point of sale to providing insurance within a product purchase journey. The goal is to create a more seamless and convenient experience for customers, who can access these services without leaving the platform they are already using.\nEmbedded Finance in eCommerce and Beyond\nPlatforms like customer relationship management (CRM) systems and shopping cart platforms, which businesses rely on for daily operations, are now able to offer financial products. This integration fosters a \u201cstickiness factor,\u201d as Griefer described it, enhancing customer loyalty and retention.\nThe embedded finance model also allows businesses to collect data on customer behaviors, he noted, such as spending habits and chargeback history. This data can be used to offer personalized financial products and services, such as tailored loan offers or customized insurance plans. \nBy leveraging this data, businesses can better understand their customers\u2019 needs and provide more relevant and timely financial solutions. This personalization not only improves customer satisfaction but also increases the likelihood of customers using these services.\nAnd for merchants, the integration of embedded finance presents lucrative opportunities, especially in the card-not-present eCommerce sector. \nAccording to Griefer, platforms that focus on subscription management, eCommerce websites, and similar services are looking to offer financial products like fraud prevention, chargeback management and payment processing. The key to success in these integrations lies in a frictionless onboarding process, which is crucial for achieving high adoption rates.\nAdoption Trends and Future Directions\nThe adoption of embedded finance varies, with payments, lending and general banking products being the most prevalent. Griefer explained that the adoption often depends on the specific needs of the platform\u2019s end users. For instance, business-to-business (B2B) platforms may see more adoption in commercial card issuance, while eCommerce platforms may focus on payments and fraud prevention.\nA critical concern for businesses considering embedded finance solutions is scalability. Griefer emphasized that these solutions are highly scalable, leveraging the infrastructure and technology of established payment processors, such as Maverick Payments. This approach allows businesses to white-label payment systems, thereby benefiting from robust compliance and regulatory frameworks without the associated overhead. \n\u201cIt\u2019s extremely scalable,\u201d Griefer said, \u201cbecause businesses can focus on their core offerings while relying on our infrastructure for payments and compliance.\u201d\nAnd market sentiment around embedded finance is positive. As businesses become more educated about the benefits, there is a growing interest in integrating these solutions. While platforms from the software-as-a-service (SaaS) world may not have a traditional payments background, they recognize the value of offering financial services to supplement their core products, Griefer explained. \nThat\u2019s why, as embedded finance continues to evolve, Griefer predicts further integration of financial services into non-financial platforms. \u201cThere\u2019s a huge need for businesses to have more tools and services at their fingertips,\u201d he said, pointing to the potential expansion into areas like payroll and more sophisticated banking services. The trend suggests that businesses will seek to offer a consolidated system that can handle various financial and operational needs, providing a comprehensive solution for their customers.\n \nThe post Maverick COO Says Embedded Finance Drives Growth and Personalization in Digital Ecosystems appeared first on PYMNTS.com.", "date_published": "2024-07-30T04:03:01-04:00", "date_modified": "2024-07-29T21:58:04-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/Embedded-finance-Maverick.jpg", "tags": [ "Ben Griefer", "customer data", "data analysis", "ecommerce", "embedded finance", "Featured News", "Maverick Payments", "News", "Payments Innovation", "PYMNTS News", "pymnts tv", "video", "WhatsNextInPaymentsSeries", "What\u2019s Next In Payments: The Halftime Report 2024" ] }, { "id": "https://www.pymnts.com/?p=2018584", "url": "https://www.pymnts.com/news/payments-innovation/2024/payments-orchestrators-become-open-payment-platforms-to-improve-ecommerce-efficiency/", "title": "Payments Orchestrators Become Open Payment Platforms to Improve eCommerce Efficiency", "content_html": "As digital commerce evolves, businesses are constantly seeking innovative solutions to enhance their payment processes.
\nAnd providers are working around the clock to give them exactly that.
\nThe emergence of open payment platforms, as one example, represents a significant step forward, offering a more flexible, secure and efficient approach to managing transactions, Andy McHale, senior director of product and market strategy at Spreedly, told PYMNTS.
\n\u201cIt\u2019s an evolution of payments orchestration \u2026 as eCommerce has evolved over the last 10 to 15 years, consumer expectations have grown around how seamless their embedded payments experiences are,\u201d McHale said. \u201cThe best payment experience is one that a customer doesn\u2019t even notice.\u201d
\nWhile orchestration focuses on facilitating transactions from point A to point B, open payment platforms encompass a broader spectrum of functionalities.
\nOpen payment platforms aim to meet new expectations by integrating additional value-added services and providing a more seamless experience for consumers and merchants alike. This evolution, McHale said, is driven by the need for solutions that not only handle payments but also offer support tools for merchants and enhance the overall payment flow.
\nThe goal of open payment platforms is to seamlessly connect and facilitate merchants\u2019 payment flows, addressing their unique needs and helping them expand into new markets with minimal friction.
\nMcHale gave as an example a U.S.-based streaming content platform looking to extend its reach to Latin America, Africa or Europe by leveraging the flexibility of an open payment platform without needing additional integrations.
\n\u201cThe nice thing about an open payments platform is it gives you flexibility. You can start small and grow into other things, and you don\u2019t have to go get another integration to add the next piece, you can do it through the existing platform, and in many cases it\u2019s a low-code, perhaps a toggle, or something very simple to add to a workflow,\u201d he said, adding, \u201cIf a merchant starts as a U.S. business and wants to expand to another region, they can very easily add a second provider through their existing platform.\u201d
\nThis flexibility is particularly beneficial for subscription platforms, streaming content providers and marketplaces, allowing them to adapt and scale their operations.
\nFor businesses considering the integration of an open payments platform, McHale recommended a \u201ccrawl, walk, run\u201d approach. This method allows merchants to start with basic orchestration and gradually build upon their success.
\n\u201cThe payment stacks inside a merchant or ISV [independent software vendor] are high-risk things to touch. We talk about getting the building blocks going so that you see success and can grow on top of that success,\u201d McHale said.
\nIn an era marked by frequent cyberattacks and data breaches, security is paramount. Open payment platforms offer robust security measures to protect data and combat fraud.
\n\u201cSecurity and fraud are never one-and-done,\u201d McHale said. \u201cYou always have to be keeping up with trends, patches and breaches as they come up in the market.\u201d
\nAnd open payment platforms provide foundational tools for PCI compliance, tokenization and secure payment method management. They also connect merchants to third-party fraud prevention vendors and other security services, ensuring they remain protected against evolving threats. McHale said this approach reduces merchants\u2019 risk by minimizing their exposure to sensitive data.
\nHe said Spreedly is at the forefront of the technological advancements represented by open payments platforms, continually exploring various avenues to integrate emerging technologies such as open banking, security, fraud prevention, data analytics and artificial intelligence (AI) into its open payment platform.
\n\u201cWe\u2019re excited about the opportunities and interesting problems out there to solve for platforms, merchants and ISVs. It\u2019s an interesting time in the industry,\u201d McHale said. He noted that as these platforms continue to evolve, they will likely play a crucial role in optimizing authorization rates, reducing loss rates and accelerating time to market for businesses expanding into new regions.
\nThe post Payments Orchestrators Become Open Payment Platforms to Improve eCommerce Efficiency appeared first on PYMNTS.com.
\n", "content_text": "As digital commerce evolves, businesses are constantly seeking innovative solutions to enhance their payment processes.\nAnd providers are working around the clock to give them exactly that. \nThe emergence of open payment platforms, as one example, represents a significant step forward, offering a more flexible, secure and efficient approach to managing transactions, Andy McHale, senior director of product and market strategy at Spreedly, told PYMNTS. \n\u201cIt\u2019s an evolution of payments orchestration \u2026 as eCommerce has evolved over the last 10 to 15 years, consumer expectations have grown around how seamless their embedded payments experiences are,\u201d McHale said. \u201cThe best payment experience is one that a customer doesn\u2019t even notice.\u201d\nWhile orchestration focuses on facilitating transactions from point A to point B, open payment platforms encompass a broader spectrum of functionalities. \nOpen payment platforms aim to meet new expectations by integrating additional value-added services and providing a more seamless experience for consumers and merchants alike. This evolution, McHale said, is driven by the need for solutions that not only handle payments but also offer support tools for merchants and enhance the overall payment flow.\nUnderstanding Open Payment Platforms\nThe goal of open payment platforms is to seamlessly connect and facilitate merchants\u2019 payment flows, addressing their unique needs and helping them expand into new markets with minimal friction. \nMcHale gave as an example a U.S.-based streaming content platform looking to extend its reach to Latin America, Africa or Europe by leveraging the flexibility of an open payment platform without needing additional integrations.\n\u201cThe nice thing about an open payments platform is it gives you flexibility. You can start small and grow into other things, and you don\u2019t have to go get another integration to add the next piece, you can do it through the existing platform, and in many cases it\u2019s a low-code, perhaps a toggle, or something very simple to add to a workflow,\u201d he said, adding, \u201cIf a merchant starts as a U.S. business and wants to expand to another region, they can very easily add a second provider through their existing platform.\u201d\nThis flexibility is particularly beneficial for subscription platforms, streaming content providers and marketplaces, allowing them to adapt and scale their operations.\nFor businesses considering the integration of an open payments platform, McHale recommended a \u201ccrawl, walk, run\u201d approach. This method allows merchants to start with basic orchestration and gradually build upon their success. \n\u201cThe payment stacks inside a merchant or ISV [independent software vendor] are high-risk things to touch. We talk about getting the building blocks going so that you see success and can grow on top of that success,\u201d McHale said.\nVision for Open Payments\nIn an era marked by frequent cyberattacks and data breaches, security is paramount. Open payment platforms offer robust security measures to protect data and combat fraud. \n\u201cSecurity and fraud are never one-and-done,\u201d McHale said. \u201cYou always have to be keeping up with trends, patches and breaches as they come up in the market.\u201d\nAnd open payment platforms provide foundational tools for PCI compliance, tokenization and secure payment method management. They also connect merchants to third-party fraud prevention vendors and other security services, ensuring they remain protected against evolving threats. McHale said this approach reduces merchants\u2019 risk by minimizing their exposure to sensitive data. \nHe said Spreedly is at the forefront of the technological advancements represented by open payments platforms, continually exploring various avenues to integrate emerging technologies such as open banking, security, fraud prevention, data analytics and artificial intelligence (AI) into its open payment platform. \n\u201cWe\u2019re excited about the opportunities and interesting problems out there to solve for platforms, merchants and ISVs. It\u2019s an interesting time in the industry,\u201d McHale said. He noted that as these platforms continue to evolve, they will likely play a crucial role in optimizing authorization rates, reducing loss rates and accelerating time to market for businesses expanding into new regions.\nThe post Payments Orchestrators Become Open Payment Platforms to Improve eCommerce Efficiency appeared first on PYMNTS.com.", "date_published": "2024-07-30T04:01:10-04:00", "date_modified": "2024-07-29T22:26:08-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/payments-orchestration.jpg", "tags": [ "Andy McHale", "cross-border payments", "data security", "digital commerce", "ecommerce", "Featured News", "Fraud Prevention", "News", "Open Payments", "open payments platform", "Payment Methods", "Payments Innovation", "Payments Orchestration", "PYMNTS News", "pymnts tv", "Spreedly", "video" ] }, { "id": "https://www.pymnts.com/?p=2011847", "url": "https://www.pymnts.com/news/payments-innovation/2024/temenos-and-visa-partner-to-provide-money-movement-solution-to-banks/", "title": "Temenos and Visa Partner to Provide Money Movement Solution to Banks", "content_html": "Banking software company Temenos has teamed up with Visa to provide the money movement solution Visa Direct to banks.
\nVisa Direct will be integrated with Temenos Payments Hub and made available to banks via Temenos Exchange, the company\u2019s ecosystem of partner solutions, the companies said in a Tuesday (July 16) press release.
\n\u201cBy combining Visa Direct\u2019s capabilities with our flexible Payments Hub and integrated account services, we are empowering banks to turn on a new distribution option with ease and provide their customers with seamless and secure international payment experiences,\u201d Mick Fennell, business line director \u2014 payments at Temenos, said in the release.
\nWith access to the Visa Direct network, banks can move money to billions of endpoints in more than 190 markets and 160 currencies with real-time cross-border and domestic payment solutions, according to the release. Use cases for cross-border payments include person-to-person (P2P) payments, funds disbursements and bill payments.
\nThe integration of this solution with Temenos Payments Hub will allow Temenos customers to incorporate Visa Direct\u2019s payment capabilities alongside other payments services on a single platform, the release said.
\nTemenos Payments Hub manages multiple payment clearing rails and services, as well as multiple payment types and schemes, with smart, intelligent routing, per the release.
\n\u201cThe integration of Visa Direct\u2019s money transfer solutions with Temenos\u2019 payments capabilities will streamline the process of deploying, scaling and maintaining ongoing interoperability for cross-border payments,\u201d Edward Chandler, senior vice president and head of money movement solutions, Europe at Visa, said in the release.
\nVisa\u2019s efforts, via Visa Direct, have made headway into forging the connectivity needed to drive instant payments, Ruben Salazar, senior vice president and global head of Visa Direct, told PYMNTS\u2019 Karen Webster in an interview posted in December 2023.
\nThe payment network has developed, with partners, aliases and directories that allow instant access to sender and receiver bank accounts by linking to emails or mobile devices \u2014 even nicknames.
\n\u201cThe alias is connected to multiple payment capabilities or credentials and … connect one network to another network to facilitate [faster] transactions,\u201d Salazar said.
\nAs for Temenos, it said in January that it launched a program to help banks modernize, providing them with a fast and low-risk route to a modern cloud-native architecture.
\nThe post Temenos and Visa Partner to Provide Money Movement Solution to Banks appeared first on PYMNTS.com.
\n", "content_text": "Banking software company Temenos has teamed up with Visa to provide the money movement solution Visa Direct to banks.\nVisa Direct will be integrated with Temenos Payments Hub and made available to banks via Temenos Exchange, the company\u2019s ecosystem of partner solutions, the companies said in a Tuesday (July 16) press release.\n\u201cBy combining Visa Direct\u2019s capabilities with our flexible Payments Hub and integrated account services, we are empowering banks to turn on a new distribution option with ease and provide their customers with seamless and secure international payment experiences,\u201d Mick Fennell, business line director \u2014 payments at Temenos, said in the release.\nWith access to the Visa Direct network, banks can move money to billions of endpoints in more than 190 markets and 160 currencies with real-time cross-border and domestic payment solutions, according to the release. Use cases for cross-border payments include person-to-person (P2P) payments, funds disbursements and bill payments.\nThe integration of this solution with Temenos Payments Hub will allow Temenos customers to incorporate Visa Direct\u2019s payment capabilities alongside other payments services on a single platform, the release said.\nTemenos Payments Hub manages multiple payment clearing rails and services, as well as multiple payment types and schemes, with smart, intelligent routing, per the release.\n\u201cThe integration of Visa Direct\u2019s money transfer solutions with Temenos\u2019 payments capabilities will streamline the process of deploying, scaling and maintaining ongoing interoperability for cross-border payments,\u201d Edward Chandler, senior vice president and head of money movement solutions, Europe at Visa, said in the release.\nVisa\u2019s efforts, via Visa Direct, have made headway into forging the connectivity needed to drive instant payments, Ruben Salazar, senior vice president and global head of Visa Direct, told PYMNTS\u2019 Karen Webster in an interview posted in December 2023.\nThe payment network has developed, with partners, aliases and directories that allow instant access to sender and receiver bank accounts by linking to emails or mobile devices \u2014 even nicknames.\n\u201cThe alias is connected to multiple payment capabilities or credentials and … connect one network to another network to facilitate [faster] transactions,\u201d Salazar said.\nAs for Temenos, it said in January that it launched a program to help banks modernize, providing them with a fast and low-risk route to a modern cloud-native architecture.\nThe post Temenos and Visa Partner to Provide Money Movement Solution to Banks appeared first on PYMNTS.com.", "date_published": "2024-07-16T16:32:45-04:00", "date_modified": "2024-07-17T23:02:23-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/temenos-Visa.jpg", "tags": [ "B2B", "B2B Payments", "commercial payments", "cross-border payments", "Edward Chandler", "Mick Fennell", "money movement", "News", "Payments Innovation", "PYMNTS News", "temenos", "Temenos Exchange", "Temenos Payments Hub", "Visa", "visa direct", "What's Hot", "What's Hot In B2B" ] }, { "id": "https://www.pymnts.com/?p=2011084", "url": "https://www.pymnts.com/news/payments-innovation/2024/trustly-lays-out-vision-for-open-banking-at-retail/", "title": "Trustly Lays Out Vision for Open Banking at Retail", "content_html": "Open banking at retail \u2014 at the point of checkout \u2014 has the advantage of lowering the costs below traditional credit and debit options.
\nChristina Potter, head of eCommerce at Trustly, told PYMNTSTV that paying by bank also has benefits for end consumers, tied to a better user experience and better security. We\u2019re not all that far away from seeing cash-back and rewards programs being offered in tandem with those payments, as consumer- and transaction-specific data help tailor those perks.
\nFor the consumers, she said, paying via bank \u201callows them to leverage other payment methods beyond credit cards,\u201d which she noted can be an expensive option, given the current interchange rate environment.
\nThe company, she said, offers a low cost and easy way for retailers to accept payments via bank accounts, using ACH rails. Trustly, she said, operates as one of the largest providers of open banking payments \u2014 and is on track to enable $100 billion in transactions this year as the firm works with some of the largest marketplaces and retailers.
\nOpen banking has the potential to lower transaction costs, Potter said. She said credit card transactions are reliant on a five-party model \u2014 tied to customers/issuing banks/merchants and acquiring banks.
\n\u201cAt every part of the process,\u201d she said, \u201cthere\u2019s a fee to be paid.\u201d Trustly\u2019s ACH-focused model, she said, is a three-party construct, which cuts out the middlemen and gives merchants more control over payment flow, and consumers don\u2019t have to enter their information more than once, as they leverage bank logins and passwords to engage in transactions, which in turn leads to a better customer experience.
\n\u201cYou can set it and forget it,\u201d said Potter, who added that \u201cconsumers don\u2019t have to worry about card expiration dates or new card numbers.\u201d\u00a0 That experience is markedly different than what\u2019s typically seen with digital wallets and is of particular benefit to subscription firms.
\nAsked by PYMNTS about the specter of fraud, Potter said that enhanced consumer authentication protocols are in the mix through multifactor authentication with bank support. Trustly, for its part, also offers a guarantee, through its real-time connectivity with the banks, that the transactions will go through, unhindered by insufficient funds, fraud or payment stops.
\n\u201cWe\u2019ve been able to create our own risk algorithms and utilize data,\u201d as she said, \u201cto put our money where our mouth is.\u201d
\nRead more: Lenovo and Trustly Team to Offer Open Banking at Checkout
\nWith guarantees and an improved consumer experience, and better fraud controls, Potter said that merchants see higher approval rates thanks to open banking, and larger basket sizes as consumers don\u2019t wind up bumping up against their credit limits.
\nLooking into the product roadmap, Potter said that open-banking and pay-by-bank options will embrace rewards programs and increased discounts to help spur further adoption. When a consumer is linking their bank account, she said, retailers can get the information they need to determine creditworthiness, can identify consumer spending habits and provide better and more personalized offers.
\n\u201cThe retailers that adopt this are going to be among the most innovative players and will be steering \u2018ahead\u2019 in terms of payment acceptance. \u2026 There\u2019s a ton of room for growth and the innovation is there,\u201d she told PYMNTS.
\nSee more: Trustly Inc. CEO Says Pay by Bank Is the Next-Gen ACH
\n\n
The post Trustly Lays Out Vision for Open Banking at Retail appeared first on PYMNTS.com.
\n", "content_text": "Open banking at retail \u2014 at the point of checkout \u2014 has the advantage of lowering the costs below traditional credit and debit options.\nChristina Potter, head of eCommerce at Trustly, told PYMNTSTV that paying by bank also has benefits for end consumers, tied to a better user experience and better security. We\u2019re not all that far away from seeing cash-back and rewards programs being offered in tandem with those payments, as consumer- and transaction-specific data help tailor those perks.\nFor the consumers, she said, paying via bank \u201callows them to leverage other payment methods beyond credit cards,\u201d which she noted can be an expensive option, given the current interchange rate environment.\nThe company, she said, offers a low cost and easy way for retailers to accept payments via bank accounts, using ACH rails. Trustly, she said, operates as one of the largest providers of open banking payments \u2014 and is on track to enable $100 billion in transactions this year as the firm works with some of the largest marketplaces and retailers.\nLowering Transaction Costs\nOpen banking has the potential to lower transaction costs, Potter said. She said credit card transactions are reliant on a five-party model \u2014 tied to customers/issuing banks/merchants and acquiring banks.\n\u201cAt every part of the process,\u201d she said, \u201cthere\u2019s a fee to be paid.\u201d Trustly\u2019s ACH-focused model, she said, is a three-party construct, which cuts out the middlemen and gives merchants more control over payment flow, and consumers don\u2019t have to enter their information more than once, as they leverage bank logins and passwords to engage in transactions, which in turn leads to a better customer experience.\n\u201cYou can set it and forget it,\u201d said Potter, who added that \u201cconsumers don\u2019t have to worry about card expiration dates or new card numbers.\u201d\u00a0 That experience is markedly different than what\u2019s typically seen with digital wallets and is of particular benefit to subscription firms.\nAsked by PYMNTS about the specter of fraud, Potter said that enhanced consumer authentication protocols are in the mix through multifactor authentication with bank support. Trustly, for its part, also offers a guarantee, through its real-time connectivity with the banks, that the transactions will go through, unhindered by insufficient funds, fraud or payment stops.\n\u201cWe\u2019ve been able to create our own risk algorithms and utilize data,\u201d as she said, \u201cto put our money where our mouth is.\u201d\nRead more: Lenovo and Trustly Team to Offer Open Banking at Checkout\nWith guarantees and an improved consumer experience, and better fraud controls, Potter said that merchants see higher approval rates thanks to open banking, and larger basket sizes as consumers don\u2019t wind up bumping up against their credit limits.\nLooking into the product roadmap, Potter said that open-banking and pay-by-bank options will embrace rewards programs and increased discounts to help spur further adoption. When a consumer is linking their bank account, she said, retailers can get the information they need to determine creditworthiness, can identify consumer spending habits and provide better and more personalized offers.\n\u201cThe retailers that adopt this are going to be among the most innovative players and will be steering \u2018ahead\u2019 in terms of payment acceptance. \u2026 There\u2019s a ton of room for growth and the innovation is there,\u201d she told PYMNTS.\nSee more: Trustly Inc. CEO Says Pay by Bank Is the Next-Gen ACH\n \nThe post Trustly Lays Out Vision for Open Banking at Retail appeared first on PYMNTS.com.", "date_published": "2024-07-16T04:00:13-04:00", "date_modified": "2024-07-15T20:59:17-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/eCommerce-checkout-Trustly-pay-by-bank-TV-overlay.jpg", "tags": [ "ACH", "automated clearinghouse", "checkout", "Christina Potter", "customer experience", "ecommerce", "Featured News", "News", "Open Banking", "Pay By Bank", "Payments Innovation", "point of sale", "PYMNTS News", "pymnts tv", "Retail", "Trustly", "video" ] } ] }