Tag Archives: open banking

Shifting the U.S. Payment Ecosystem

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The ideal payment system: Fast, Seamless and Cost effective

The US payment system is continuing to improve as both public and private players in the ecosystem realize that merchants,consumers and businesses will benefit from cost effective digital payments.

Interbank connectivity through ACH, The Clearing House’s RTP network and FedNow services are prime examples of how account to account payments are getting “upgraded”. These instant payments will help drive digital commerce in secure, transparent channel.

Payment innovation will require the ability to know not only recent transactions but proactively predicting future customer /business needs and transactions.

The emergence of payment Fintechs is an opportunity for traditional financial institutions to partner and support the growth of an alternate payment system that benefits everyone with the adequate levels of risk and security covered. (the consumer, the merchant, the system behind the scenes and the financial institutions on both ends of the transaction flow)

Electricity and Payments – there is a synergy

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As I continue my journey in the payments ecosystem I realize that the “pay by card” norm continues to fade as consumers and businesses are transacting by using their phones, watches, cars, accounts.

Money movement from either a tangible device or intangible origination point (such as an account) reminds me of electricity. We need electricity in modern society (just like we need payments) but we don’t see the current moving from the origination point to the lamp, router,device. We have transformed how we use electricity through cars, etc. just as payments continues to evolve.

I would say that the USA is behind as far as usage for the payment method (cards are still the norm for the mass market) but disruption is occurring in small pockets and broader adoption is inevitable.

The synergy between electricity and payments will continue as innovators continue to challenge the norms, invent more frictionless experiences and deliver the end output that we all depend on.

So the next time you turn on a light think payments and how the future is bright for both industries:0