News platforms such as American Express and Forbes conducted a survey, and based on that survey data, they released two insights reports evaluating the existing state of cooperation and innovation in the payment industries.
For a seamless process of payments, innovation in the field of technology, and consumer reliability, there is a need for collaboration and smart innovation, which also promote security advancement, efficiency, and user-friendliness in the payment sector.
As the collaboration report states:
Robust cooperation in the payment sector will be a growth factor for other industries; let’s support it through some points:
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High-level managers or leaders have their views on the importance of collaboration in the payment sector.
Yvette Bohanan, a 27-year-old experienced industrial payments consultant, believes that the newly introduced theory of “holistic payments” rightly encapsulates the right attitude of top personalities of an organisation required for collaboration and innovation; at Glenbrook, she already shared a clear view on this topic.
There is no individual or functional authority of an organisation exclusively dedicated to processing the payment system; it’s a group-oriented process in which every individual is interconnected to perform the overall payment procedure.
As per the survey, around one-third of the administrative leaders do not agree with the idea of cross-functional collaboration and information sharing as one of the stipulations for driving innovation in the payment sector.
The survey also states that only 50% of respondents agreed with the statement that the chief executives of their organisation are fully involved as a whole in the payment policy.
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In the name of collaboration, the product developer’s team stands below.
Product developers might want to collaborate with other teams involved in payment policy, as the top administrative body of product developers already plans their team objectives for the future.
As of 10 different functions, the product developer’s cooperation rate is lower, as reported by 54% of higher administrative positions in an organisation, and around 42% of them agree with the statement that product development units require more collaboration.
It indicates that organisations incorporate payment considerations from the initial stage of product development rather than waiting for product development to end, which will provide contemporaries with the payment process and reserves.
Bohanan states that the entire payment sector is rapidly changing with time, so in that case, every individual in an organisation must comprehend their responsibilities and the magnitude of their assistance in the organisation’s payment process.
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There is a requirement for greater collaboration within the organisation to eliminate fraud.
The automated fraud detection and advancement of cyber securities rank as one of the five most important steps to deal with the current payment trend. While advancement and implementation of risk mitigation plans rank 9th out of 13 prospective tactics.
First-party frauds, such as customer fraud, use different login addresses to avail the benefits to the first customer at the time of the transaction, so in this case, Bohanan suggests that there is a strong need for cross-team risk management strategies to eliminate the fraudulent activity. It is necessary to detect such fraud customers on time who are utilising the same benefits again and again and mark them as fraud individuals. Through different methods, such as the advancement of technology, improving marketing strategies, and enhancing the financial sector’s potential, companies can identify those fraud customers as the same individuals who are again and again coming in.
As the innovation report states:
Payment sector innovation requires strategic planning. Let’s support it with some points:
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Successful innovation demands a clear vision and a strong focus on expected returns.
Technology like a buy now option on any online site of an institution allows businesses to complete the transactions in one single click, while real-time transactions ensure that payment transactions should end within seconds, regardless of the time frame.
To fully utilise the benefits of this innovation process in payment sectors, businesses need to manage the increased speed and variety, added cost, risks, and complex system of the business.
Ron Shevlin states that the increased acceptance of new forms of payment systems forces large businesses to use multiple complex systems from different providers, and ultimately, this results in a need for significant management systems to handle those complex systems. Due to high labour costs, executives prioritised value propositions in determining innovation requirements.
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Real-time processing system as a cost-saving innovation:
As per the American Express survey, the real-time processing system is the best innovation, which is cost-saving, and this eagerness is likely to continue.
To provide a chance to handle transactions more smoothly and with cost efficiency, Shevlin suggested that businesses need to clear all payments more quickly than usual, which would also lessen the reconciliation work for the businesses.
American Express conducted a survey, and this survey states that around three-fourths of the higher officials agree with the statement that contactless payments will enhance their organisation`s cost-effectiveness in the upcoming years. Consumers are also satisfied with convenience, and higher officials have welcomed the technology for streamlining collections and improving cash flow control.
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To eliminate fraud, the payment system needs to be successful.
To generate a good amount of return through investments in innovation, organisations should improve their fraud detection capabilities. To eliminate fraud and flag unlawful fraudulent purchases before the transaction process ends and to prevent revenue loss, there is a need for an advanced fraud detection system.
As of now, only one-third of higher officials have prioritised automating fraud detection systems as their major three-level strategy to deal with changing payment trends. While two-thirds of executives believe that fraud detection and innovation will be beneficial for their future growth in the payment sector.
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Payment modernization is the future.
The entire payment system upgrade depends on innovation, collaboration, and business outcomes. Bank of America’s Wally Mlynarski states that the advancement of payment systems involves new transaction types, data, and business models, which are fuelled by consumer demand for a comfortable payment experience. The rise of SEPA and ZELLE in Europe and the United States is a sign of payment advancement. Now the technological industry is engaged in developing new innovative ideas in the payment sector to enhance user satisfaction.
The COVID pandemic became the elixir of payment system innovation.
During the pandemic, the use of cashless payment systems has increased globally. This is because cashless payment systems are a smooth, safe, and efficient mode of transaction. From 2017 to 2022, this technology has witnessed global acceptance, where the annual transaction saw a significant rise of 91 to 135 per person. Low- and middle-income countries have witnessed a doubled growth in digital payment system users, while larger economies estimated a growth of 17% during the same time frame.
Even after the COVID period, the use of digital modes of payment has gone through a large advancement process, which will be beneficial for the users to utilise those benefits more efficiently and easily without any security concerns. While development in the payment sector also boosts digital economies around the globe and fuels innovation, In 2025, PWC plans to release its inaugural digital report, highlighting the significant transformation of the global economy and the increasing adoption of digital payment systems following the COVID-19 pandemic.
https://blogs.worldbank.org/en/psd/a-survey-of-the-global-payment-systems-in-six-charts
