The Future Of Payments
Worldline Rise 2021 India chapter is a global initiative powered by Worldline. The recently concluded event was based on 8th October 2021 was based on the theme ‘Driving Growth Through Innovation In Payments’ where industry leaders from across the spectrum of the payment value chain came together to discuss key developments in the ecosystem. Payment is one of the fastest-growing industries that thrive on innovation. We explore diverse aspects of this theme through insightful sessions and panel discussions.
The next segment of Worldline Rise India chapter featured a panel discussion on The Future Of Payments and how payment preferences of consumers are changing in the new normal. The list of panellists included Mihir Gandhi (Partner and Leader - Payment Transformation, PWC), Yezdi Lashkari (Founder, Flexmoney), Simone Lavicka (VP Strategy and Business Office, Worldline). The session was moderated by Usha Shankar (AVP and Head Platform Business, Worldline). Read on for more insights from the discussion.
There are a few trends observed in the payment space. They are:
- Change in consumer payment behaviour due to the pandemic: Consumers are looking for convenience, choice, and speed in payment while shopping online. Therefore, the cashless and contactless payments trend is here to stay. Cross-border purchases have also risen given the globalisation of the market.
- Adoption of cashless payments: small and medium businesses that preferred traditional cash-based payments are now leaning towards digital payments to meet consumer preferences.
- Buy Now, Pay Later: Accelerated by the pandemic, the expansion of online commerce, and the need to go digital has made this the fastest growing online payment method.
- Commerce embedded purchase: The mode of payment has changed from a bank-led model to a commerce embedded purchase where the merchant controls the entire payment process.
How is mobile commerce shaping the payment industry?
As consumers get comfortable with online shopping and digital transactions, merchants are channelling mobile commerce and offering a wholesome experience on social media platforms like WhatsApp, Instagram, and Facebook. This is likely to be a game-changer with the rising number of mobile users in the country.
The entry of blockchain technology and the open banking network in the payment space
India has just launched the account aggregator framework, an open banking architecture. The move has been much appreciated for helping financial inclusion and enabling pocket-sized payment options for a wider population. The account aggregator model is bound to change the way we look at payments.
On the other hand, blockchain is gradually being rolled out in use cases like cross-border remittance and Central Bank Digital Currency (CBDC). However, large-scale adoption of this technology will happen over a period of time.
What payment method is going to prevail in the future?
In countries like India and other Asian countries, there has been a visible shift from cash to cashless payments accelerated by the pandemic, UPI (United Payments Interface) being the classic example. That being said, the payment space is going to look completely different 10 years from now due to digitisation.