Future-Proofing Payments

Watch video: An introduction to future-proofing payments.

Transcript

Ben Matthews, Baringa
Payments are fundamental to help society run effectively. A core purpose of the payments industry is to keep us safe and secure and to protect those more vulnerable in society. These are universal values, borderless. Whether it’s between individuals and organisations, employers and employees, or across supply chains and borders – payments form the thread of how financial institutions enable the safe exchange of value every single day. The pace of change is picking up speed.
Consumers are changing their behaviour. Bank cards are being replaced by mobile wallets and integrated, wearable devices. Open banking offers new ways to deliver account to account payments, such as variable recurring payments. And in parallel, the transition from cash to digital assets is here, with CBDCs being explored globally and payments being made using tokens in the metaverse.

Anna Orriss-Baxter, Baringa
Global innovations and architecture are driving change too. The move from lengthy clearing cycles to real time payments has accelerated and ISO20022 standards are being embedded across the world. In the UK, we are seeing the New Payments Architecture (NPA) and the real time gross settlement (RTGS) renewal programme coming online. In the US, FedNow is launching in July 2023. Similarly, there are ambitious ventures with payments modernisation in Australia, where they recently announced the payments roadmap for the industry, which includes phasing out cheques by 2030. In India the Unified Payments Interface (UPI) has enabled digital payments to overtake credit and debit card use in the last year.

Cross-border payments particularly in the low-value market continues to evolve, with many different players and models now available for transferring funds internationally. The possibilities offered now from proven and scalable distributed ledger technology means that there’s a re-think on global and local regulation with new opportunities for interoperability.

Ben Matthews, Baringa
The payments ecosystem needs to be ready, agile and look ahead to stay competitive in this market. That means maintaining business as usual so your customers can make payments safely, securely and on time. It means looking ahead to new innovations so you’re not falling behind the competition and losing customers. It means having the right data to be able to respond robustly to changing regulations. And it means being a driver for transformation in your organisation. At Baringa we understand how payments work in the real world. Our expertise runs deep – we've done everything from advising C-suite on payments strategy, to coding payments systems, to delivering some of the largest, most complex payments transformations in the market.

Anna Orriss-Baxter, Baringa
We work with payment schemes, banks, regulators, fintechs, payment service providers and more. We know every client has different starting points, different challenges, and different ambitions. What makes us different is that we understand how central payments are to customer experience, loyalty and trust and we will work alongside you to develop bespoke solutions –bespoke because every client is unique

A positive payment experience means satisfied customers. That’s because payments are fundamental; to help society run effectively, to exchange value and to provide peace of mind.

To deliver great customer experiences you need a partner who understands how payments work in the real world. That’s where we come in.

We work with payment schemes, banks, regulators, fintechs, payment service providers and more. We know every client has different starting points, different challenges, and different ambitions. What makes us different is how we work with you to develop bespoke solutions – bespoke because every client is unique.  

Future proof your organisation. Future proof payments.

Our Insights

Reimagining the payments function

Right now, there’s a huge opportunity for banks to transform payments from a cost line item into a valuable new revenue stream. We explore what it will take for banks to tap into this revenue-generating opportunity and deliver sustained growth and long-term value creation.

Maximising the value of your payments function

We explore how enterprise value creation can help banks achieve sustainable efficiencies, free up capacity and funding, and transform payments from a utility into a truly commercial revenue stream.

Why banks need to evolve their legacy payments operating models

Evolving your payments operating model could hold the secret to greater customer-centricity and value creation. Discover our three steps to building a strategy centered on innovation and growth.

Meet the payments leader of the future

Traditional banks are starting to realise the huge revenue-generating potential of their payments functions and are transforming their operating models, embracing new technologies, and ushering in fresh ways of working. But there's a piece of the puzzle remaining: people.

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Tokenisation - the next big thing?

Tokenisation is often touted as an exciting innovation in financial services. We unpick the potential use cases and considerations for the payments market.

Payment innovations: where should you invest?

We explore the payment innovation ecosystem and provide guidance on the key innovations we believe will have the most significant impact on the payments.

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Navigating payments innovation

While new products, technologies and partnerships are being introduced at a pace never seen before, the financial services industry isn’t yet aligned on which payments innovations to invest in.

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Reflections on the Future of Payments Review

Baringa is pleased to have contributed to the ‘Future of Payments Review.’ In this video, we share our reflections on the report and what this means for the UK payments market.

Regulated Liability Network: the future of the UK market

We look at the role the Regulated Liability Network could play in the UK market, the roadmap required to achieve it, and how regulation will impact it.

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A guide to operationalising your payments modernisation journey

Establishing an operating model that supports a modern payments architecture is a key component of a successful payments transformation journey.

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Finding the right modernisation approach: is your payments architecture fit for the future?

How can you take a tailored approach to modernising your payments architecture? We share six steps to determine the best approach for your organisation.

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Payments modernisation in financial services: building the foundations for future success

With waves of changes sweeping the payments industry, it’s essential that firms modernise their payments architecture now to set the foundations for future success.

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Modernising payments architecture

To keep up with the pace of change and future-proof their organisation, now is the time for financial services firms to modernise their payments architecture.

A customer-centric culture is needed to future proof the payments ecosystem

How can providers, customers and regulators create an innovative payments ecosystem?

Payments in Web 3 – redefining the role of traditional banks and intermediaries

Web 3 represents an evolution of how technology and data are used. In this article, we look to unpick the impact that Web 3 will have on the payments industry.

Is Web 3 the future of payments?

Web 3 represents the next iteration of the internet – it will be powered by distributed ledger technology (DLT)

Variable recurring payments: The next step for open banking

Variable recurring payments are one of the latest innovations in open banking, allowing customers to initiate recurring payments securely. In this article, we look at how they’re used, how they compare to other payment methods, and the benefits they provide.