DIGITAL PAYMENTS
Three main drivers behind future of paytech Wood adds : “ The future of payment technologies is ostensibly anchored on three pivotal axes : cryptocurrency , artificial intelligence ( AI ), and blockchain .
“ Cryptocurrencies , spearheaded by bitcoin , are progressively being recognised as a legitimate alternative to traditional currencies .”
“ The irrefutable allure of cryptocurrencies lies in their decentralisation , which extricates transactions from the clutches of traditional banking systems , thereby mitigating fees and augmenting transaction speed . However , the mass adoption of cryptocurrencies is fettered by regulatory scrutiny and a lack of understanding amongst the general populace .
“ On a parallel trajectory , the blockchain – the underpinning technology of cryptocurrencies – is showing promise in enhancing payment systems by fostering transparency and reducing fraud . By creating an immutable ledger of transactions , blockchain curtails the propensity for financial misdemeanours and accelerates the verification process , which is imperative in a world where the velocity of transactions is escalating exponentially .
“ AI and machine learning ( ML ) are the linchpins in the evolution of payment technologies . My tenure as a visionary at Spectrum Search , an AI and ML-led recruitment agency , and the pivotal role I play at the Outlier Ventures accelerator , have reinforced my belief in the transformative power of AI in payment systems . AI can streamline the payment process by predicting consumer behaviour , detecting fraud , and automating routine tasks , thereby ameliorating the user experience and bolstering security .”
“ The future of payments is unfolding in ways that were once considered unimaginable ”
PAUL STAPLES HEAD OF EMBEDDED BANKING , CLEARBANK
Indeed , the prevalence within financial services of these three technologies – once the stuff of sci-fi-induced fever dreams but now the hottest topics in boardrooms around the world – is a testament to how the industry has embraced cuttingedge technology . Of course , they all have their detractors . However , business leaders throughout the financial world are embracing change and deploying the technology that is powering it .
It is helping to tackle long-standing issues within the industry , as well . According to research from American Express , nearly a third of businesses ( 29 %) have seen an uptick in payments fraud over the last year . They are responding . Nearly half ( 45 %) of those companies have introduced new security and anti-fraud measures , while a third ( 34 %) have taken steps to bolster their existing payments security capability . These firms are spending an average of 7 % of their annual turnover on fraud protection .
It ’ s not just fraud , either , although this is a clearly advantageous use-case . Over the past two years , seven in 10 ( 69 %) businesses have adopted or considered
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