116 VIEWPOINT The way we handle payments is shifting fast, as banks and financial institutions adapt to keep up with customer expectations ANOOP GALA: ORION INNOVATION Evolving payments processes Consumers and businesses want convenient, reliable and secure ways to secure financial transactions. Over the years, the financial industry has answered with several payment innovations that push the boundaries of what’s possible. More and more people are turning to digital payments. In 2024, the total transaction value for digital payments is forecasted to reach $11.53 trillion, according to Statista Market Insights. Whether online or in-store, customers want options in how payments are made. Contactless and mobile payments such as Apple Pay, Google Wallet, and Samsung Pay became the norm because of the pandemic, and they’re still increasing in popularity today. With just a tap or a swipe on their phone, customers can pay for almost anything on the go. Payment options are also becoming more flexible and accessible. ‘Buy now, pay later’ solutions allow customers to purchase something now and pay in instalments over time, often without extra interest. This approach is reshaping how people handle their finances and is becoming a favourite among both shoppers and retailers. Speed is an integral aspect of digital payments. Customers and businesses expect to complete transactions within mere seconds and get immediate confirmation and settlement. Instant payment systems around the globe such as FedNow and RTP in the US, SEPA Instant Credit Transfer in Europe, UPI in India, and Pix in Brazil make this possible. They play a crucial role in reducing processing efforts, keeping transaction costs low and improving cash flow. Innovations in virtual money such as blockchain and central bank digital currencies (CBDCs) are also taking digital payments a step further. Blockchain is the underlying technology behind cryptocurrencies such as Bitcoin. It improves transaction efficiency and security with its decentralised, transparent, and tamper-proof nature. Meanwhile, the world’s central banks are exploring CBDCs to modernise how money works and boost financial inclusion for the unbanked. With the number of payment solutions rising, customer experience is key to stand out in the space. Banks and fintech organisations need to prioritise creating human-centred, frictionless experiences that make payments a natural and invisible step in the process. As customer and business expectations evolve, so will payment platforms and services. Next-gen technologies will drive payment innovation further by revolutionising experiences and creating new revenue streams for businesses. In our work as a digital partner for some of the world’s leading organisations, we’ve seen banks and financial institutions maximise available technologies to build successful payment solutions: Real-time capabilities – Real-time payments are becoming a standard expectation. They allow transactions to be processed instantly, cutting out the wait time of traditional systems. This speed is crucial for meeting today’s demand for quick and seamless financial transactions. Microservices-based cloud-native architecture and platforms – Banks are moving towards microservices-based, cloud-native architectures.
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