The Global Payments Innovation Jury report, unveiled by Interswitch Group in Nairobi, Kenya, with a special focus on a new era for payments has shed light on the future of the payments industry after a period of significant market shifts.
The report, titled “Market Meltdown – Impacts on Infrastructure, Regulation and Innovation,” is the most diverse in the Jury’s 16-year history, with participation from over 130 payment experts worldwide. This year saw a significant increase in representation from central banks, regulators, and investors, providing a more comprehensive view of the industry’s challenges and opportunities.
Commenting on the report, Mitchell Elegbe, Interswitch’s Founder and CEO highlighted that the report’s value is fostering a balanced understanding of the evolving global payments landscape.
The findings from the report offer valuable insights for businesses across the payments ecosystem, helping them navigate the new market realities and position themselves for success in the years to come.
Meanwhile, here are six key takeaways from the report:
- Profitability Takes Center Stage: Gone are the days of hyper-growth at any cost. Investors are now prioritizing profitability, and the jury believes this is a positive change for the industry’s long-term health.
- Cost Management is King: Businesses that can effectively manage expenses will thrive in the new normal. While some worry this focus might stifle innovation, others see it as a necessary step towards sustainable growth.
- AI and Climate Fintech on the Rise: With investment shifting away from pure payments companies, businesses developing solutions in artificial intelligence and climate-focused fintech stand to gain.
- Cards Face Challenges in Emerging Markets: Mobile money and account-to-account (A2A) payments are gaining traction in regions where cards haven’t taken root, making it difficult for cards to get a foothold.
- Developed Markets: Cards Remain Strong, But Growth Slows: Credit and debit cards will likely maintain their dominance in developed markets, but significant growth will be harder to achieve.
- Banks are the Future of Mobile Wallets: Surprisingly, the jury believes banks, not fintechs or mobile network operators (MNOs), are best positioned to be the major players in the mobile wallet space, especially as regulations become more stringent. Banks’ experience in managing compliance at scale gives them a significant advantage.
The full report is available at innovationjury.com