Well, another PayExpo is over and whilst many are resting weary feet (and maybe some weary heads), we take a look at some of the themes and trends that came out over the two days.
• Payment Networks – whilst there was plenty of talk and appetite to move away from the MasterCard and Visa duopoly, it seems we are a little way off from this becoming a reality in Western Europe and the US. We have definitely seen an expansion of closed loop networks like Starbucks (around 20% of all in-store Starbuck payments are made using the Starbucks card), but overall market share remains very low and growth is not particularly scalable. The main challengers to the current hegemony might indeed come from further afield – with the national payment networks like Rupay (India) and Union Pay (China) who are beginning to follow migrating workers out beyond their own territories. It will be truly fascinating to see what happens if they reach a tipping point in market share in a Western economy.
• Cryptocurrency – Bitcoins, blockchain companies and cryptocurrencies were popular and exciting themes at the expo but the feeling from many of the delegates that we spoke to was that for now it will remain a niche area for making payments. In one of the conference debates, the point was made that if you look at recent big payment trends, such as the m-wallet, they work because they actually solve a problem for a large group of consumers. The point being that Bitcoins and cryptocurrencies really don’t do that yet, especially as consumer behaviour is still entrenched in the confines of the status quo. Time will tell if circumstances will change.
• A Global Affair – many fintech innovations are undoubtedly coming from the EU, however the trend still looks set to continue eastward. Asia is continuing to expand as a source of growth and ideas. This could be due to a more relaxed regulatory environment – an issue not helped by the current legislative quagmire of PSD2 (a point certainly not lost on delegates). Whilst regulators may argue that slower change in the EU is no doubt a positive thing as it secures a safe environment to innovate, many delegates felt that this might be at the cost of harnessing and bringing new ideas to market.
There were other trends too such as biometrics (major growth predicted), agnostic payment systems (one size fits all, please) and wearables (will it really create a positive user experience in regards to payments?). For us though, the expo showed the exciting range of talent (and matching desire) to bring new products and services to the payments industry. Whether the pace of that change is slow or rapid, remains to be seen, but we’re still predicting an exciting few years ahead!
Well, another PayExpo is over and whilst many are resting weary feet (and maybe some weary heads), we take a look at some of the themes and trends that came out over the two days.
• Payment Networks – whilst there was plenty of talk and appetite to move away from the MasterCard and Visa duopoly, it seems we are a little way off from this becoming a reality in Western Europe and the US. We have definitely seen an expansion of closed loop networks like Starbucks (around 20% of all in-store Starbuck payments are made using the Starbucks card), but overall market share remains very low and growth is not particularly scalable. The main challengers to the current hegemony might indeed come from further afield – with the national payment networks like Rupay (India) and Union Pay (China) who are beginning to follow migrating workers out beyond their own territories. It will be truly fascinating to see what happens if they reach a tipping point in market share in a Western economy.
• Cryptocurrency – Bitcoins, blockchain companies and cryptocurrencies were popular and exciting themes at the expo but the feeling from many of the delegates that we spoke to was that for now it will remain a niche area for making payments. In one of the conference debates, the point was made that if you look at recent big payment trends, such as the m-wallet, they work because they actually solve a problem for a large group of consumers. The point being that Bitcoins and cryptocurrencies really don’t do that yet, especially as consumer behaviour is still entrenched in the confines of the status quo. Time will tell if circumstances will change.
• A Global Affair – many fintech innovations are undoubtedly coming from the EU, however the trend still looks set to continue eastward. Asia is continuing to expand as a source of growth and ideas. This could be due to a more relaxed regulatory environment – an issue not helped by the current legislative quagmire of PSD2 (a point certainly not lost on delegates). Whilst regulators may argue that slower change in the EU is no doubt a positive thing as it secures a safe environment to innovate, many delegates felt that this might be at the cost of harnessing and bringing new ideas to market.
There were other trends too such as biometrics (major growth predicted), agnostic payment systems (one size fits all, please) and wearables (will it really create a positive user experience in regards to payments?). For us though, the expo showed the exciting range of talent (and matching desire) to bring new products and services to the payments industry. Whether the pace of that change is slow or rapid, remains to be seen, but we’re still predicting an exciting few years ahead!
Well, another PayExpo is over and whilst many are resting weary feet (and maybe some weary heads), we take a look at some of the themes and trends that came out over the two days.
• Payment Networks – whilst there was plenty of talk and appetite to move away from the MasterCard and Visa duopoly, it seems we are a little way off from this becoming a reality in Western Europe and the US. We have definitely seen an expansion of closed loop networks like Starbucks (around 20% of all in-store Starbuck payments are made using the Starbucks card), but overall market share remains very low and growth is not particularly scalable. The main challengers to the current hegemony might indeed come from further afield – with the national payment networks like Rupay (India) and Union Pay (China) who are beginning to follow migrating workers out beyond their own territories. It will be truly fascinating to see what happens if they reach a tipping point in market share in a Western economy.
• Cryptocurrency – Bitcoins, blockchain companies and cryptocurrencies were popular and exciting themes at the expo but the feeling from many of the delegates that we spoke to was that for now it will remain a niche area for making payments. In one of the conference debates, the point was made that if you look at recent big payment trends, such as the m-wallet, they work because they actually solve a problem for a large group of consumers. The point being that Bitcoins and cryptocurrencies really don’t do that yet, especially as consumer behaviour is still entrenched in the confines of the status quo. Time will tell if circumstances will change.
• A Global Affair – many fintech innovations are undoubtedly coming from the EU, however the trend still looks set to continue eastward. Asia is continuing to expand as a source of growth and ideas. This could be due to a more relaxed regulatory environment – an issue not helped by the current legislative quagmire of PSD2 (a point certainly not lost on delegates). Whilst regulators may argue that slower change in the EU is no doubt a positive thing as it secures a safe environment to innovate, many delegates felt that this might be at the cost of harnessing and bringing new ideas to market.
There were other trends too such as biometrics (major growth predicted), agnostic payment systems (one size fits all, please) and wearables (will it really create a positive user experience in regards to payments?). For us though, the expo showed the exciting range of talent (and matching desire) to bring new products and services to the payments industry. Whether the pace of that change is slow or rapid, remains to be seen, but we’re still predicting an exciting few years ahead!