Paying in a 3.0 world

Global economy has drastically changed in the past decades with the development of Internet and online payments. What lies behind these contactless payments, void of human interactions, and how can we entrust our devices with our money?

The 2018 edition of Money20/20, Europe’s largest FinTech event, was held in Amsterdam in June and focused on 14 track themes based on industry research and audience feedback.

One of the key talking points this year, both on stage and on the event floor, was “real time” payments as they are getting more prevalent through online, in-app and mobile payments. Furthermore, physical transactions are giving way to virtual ones, thus leading to high-speed settlement times (as per European regulations), increased system automation, etc.

On the customer side of things, “invisible payments” are becoming more widespread. This qualification encompasses both payments made by customers without a concrete action on their part (for instance when using Uber) and payments made automatically by their devices and under their control. The aim is to facilitate payments as much as possible for clients while ensuring they remain in total control over what they are spending.

As a result, technology is paramount to ensuring payments (which are the basis of our economy) go through and meet today’s needs.

This leads us to the delicate issues of trust and transparency in the world of online payment. From the outset, businesses have built trusted relationships with their clients over time and in the same way, financial institutions build the trust they have vis-a-vis their clients with in-house data they use for behavioral analysis. Today, as online business, merchants, clients increasingly use online payments (in all forms) this trust has to be built through new means and faster. Major players use techniques such as risk assessment, credit rating, data mining, etc., and tools such as big data and artificial intelligence to conduct their analyses and assessments.

The result is a Web space in which customers and merchants coexist and for which it is the payment industry’s responsibility to ensure seamless transactions though secured processes and procedures in order to comply with numerous government rules, regulations and specifications.