PAYMENTS
From complexity to currency: Monetizing global payments opportunities
The convergence of AI, real-time payments, and evolving consumer behavior is reshaping the payments landscape. Only the strategic and fast movers are able to successfully capture newly available opportunities, and navigate through competitor moves, technical complexity, and regulatory hurdles. Opportunities include:
Embedded Finance and B2B Payments
Third-party financial tools are now being integrated into non-financial platforms (e.g., Shopify Balance, Uber Wallet), creating low cost distribution for providers, simplified compliance for Enablers, Increased engagement for the Platform providers, and a more contextual experience for consumers.
Similarly, ISVs are embedding automated AR/AP workflows into tools like QuickBooks, triggering milestone payments without manual intervention. This trend reduces DSO by 14-18% for SMBs.
Real-time Payments Acceleration
Instant payments are becoming the global standard, driven by regulatory mandates and consumer demand:
- Cross-Border RTP – Central banks are pushing interoperable networks to enable seamless international transactions
- Pay-by-Bank Solutions – Open banking APIs and A2A payments reduce reliance on cards, lowering merchant fees
- One-Click Checkouts – RTP reduces cart abandonment rates from 70% to under 1% for mobile apps
Despite global RTP growth, siloed domestic systems (e.g., India’s UPI, EU’s SEPA) lack interoperability, creating $28B in annual hidden FX costs. Solutions like Visa Direct are bridging gaps, but regulatory coordination remains a hurdle.
BNPL Expansion into Non-Discretionary Spending
BNPL is quietly moving beyond retail into sectors like utilities, housing payments, car repairs, and healthcare. This shift challenges traditional credit models and requires new risk-assessment frameworks.
A2A Payments in Emerging Markets
While Western markets focus on digital wallets, account-to-account (A2A) payments are surging in India, Brazil, and China due to open banking adoption and merchant-driven instant settlement. These systems are bypassing card networks entirely, with transaction fees 50-70% lower than card payments, pressuring legacy revenue streams.
Client Successes:
- Generated $50M in cost savings across 3 years through customer and agent chatbots
- Achieved #1 J.D. Power ranking through targeted servicing improvements
- Achieved 74% cost reduction in processing fees
- Designed a byte-sized, binge-worthy financial planning experience
- Streamlined servicing operations based on NPS analytics
$124T
forecast B2B payments value by 2028
30%
share of electronic payments that will happen in real-time by 2027
Perspectives: Payments
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Money Games
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From Cards to Chains – Payments in the Blockchain Era
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Digitizing the Back-Office
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