Navigating payments innovation: How to adapt to new consumer demands & industry advancements

The payments ecosystem stands at an inflection point. The emergence of mobile wallets and payment innovations like buy-now-pay-later (BNPL) and Pay by Bank have radically altered the checkout experience, while Open Banking and emerging technologies such as AI enable more convenient and secure payment experiences. 

However, consumers are facing a confusing array of cashbacks, discounts and loyalty features from banks, payment providers and merchants, and alternative payment methods are challenging long-standing offerings built around credit and debit cards.

On March 21, 2024, in partnership with FStech, Ciklum hosted a Payments Innovation Breakfast in London. Industry experts gathered to discuss the current payments landscape, strategies for managing changing consumer habits and expectations, alongside the foundational shifts brought about by Open Banking and AI. 

The briefing covered a broad spectrum of topics, from the transformation at the checkout to the emerging challenges and opportunities within the financial sector.

Here are the key takeaways:

1. The Era of Open Banking:

Imran Gulamhuseinwala’s keynote speech, highlighted Open Banking's rapid growth as both an opportunity and a challenge. He emphasized its potential to transform both personal and business banking, while also noting the hurdles related to consumer adoption and regulatory compliance.

Whilst there is widespread Open Banking coverage, low adoption and public trust remain issues, especially while there are still gaps in consumer protection. On a broader scale, the topic of Open Finance also surfaced in discussion. At a time when people are increasingly keen to understand their financial footprint, Open Finance’s evolvement off the back of Open Banking will be prominent in the near future.

In summary: An open future

From the keynote and panel exchanges, it's clear that the payments field is on the brink of transformative changes. Innovations like mobile wallets, buy-now-pay-later schemes, and the advancements promised by Open Banking and AI are setting new standards for convenience, security, and consumer engagement. Yet, as these technologies advance, the financial sector must also address emerging challenges head-on, from cybersecurity threats to ensuring inclusivity and trust in digital finance.

The event's takeaways emphasize a balanced view: while there are hurdles to overcome, there's a tangible path forward driven by innovation, collaboration, and a deepened understanding of consumer needs.

Want to drive new Open Banking solutions? Need help with your underlying technology stack? Get in touch with Ciklum’s expert team today and let’s discuss your specific use cases and requirements.