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2018 predictions platform. Can we find ways to partner to better integrate
all the steps in the process to make it smoother and more
for global payments, efficient for all involved?

3. The vertical-ization of payments
receivables In many industries, payments are becoming more

verticalized – optimized for specific sets of customers
By Mike Massaro and requirements. We already can see examples of this in
healthcare, higher education, K-12 education, kids' sports,
Flywire Corp. real estate and travel. The drivers behind this can be type
of transaction, specific industry regulations, connected
o matter your business, industry, geography accounts, international requirements or payment-related
or politics; globalization is happening. In this customer support needs. Expect to see more of this in 2018
environment, cross-border payments have as businesses and institutions look more holistically at how
N become common. Yet, for the most part, they to create frictionless relationships with their customers.
remain costly, complex and inconvenient for businesses,
institutions and individuals. Will this change in 2018? 4. Geo-political impacts
Here are five things to watch for. No matter what region of the world you are in, many
1. Incumbents – Will good intentions deliver real variables impact payments – security, taxation, import/
results? export regulations, trade agreements, monetary policy,
demographic shifts, immigration, politics and more. In
A large majority of cross-border payments are still response, we see different countries collaborating more
controlled by banks and other large incumbents. If we closely to create more predictability in their markets and
are going to make these global transactions easier for protect their common interests.
payers and receivers, these incumbents must accelerate
their progress and level of innovation. We saw good signs These collaborations also lead to competition with other
in late 2017 with a flurry of announcements about cross- regions – to attract new trade, build new skillsets or offset
border payment initiatives from big names including Citi, aging populations. The Asia-Pacific region has been
First Data, IBM, JPMorgan Chase, Mastercard, PayPal, dominant and grown the fastest in recent years, but we're
Royal Bank of Canada, Swift and Visa. starting to see Latin America and Africa emerge, building
off their mobile technology infrastructures. What impact
Banks will always play a critical role in the cross- will these geo-political shifts have on global trade and
border ecosystem, and we continue to find new ways to commerce? Will it shift volumes through different
collaborate with them to remove friction from the process. payment corridors? How will different players in the
These recent announcements show more promise, but will payments ecosystem respond?
they drive real innovation? 2018 will tell us a lot.
5. Predictive analytics
2. Financial interoperability and end-to-end global
transaction management The pace of change today requires everyone in the
payments industry to predict the future to some extent.
Today, the lifecycle of an international payment involves And we're beginning to see that as different players in our
multiple players and handoff points. Different solutions are ecosystem start to incorporate the principles of artificial
focused on optimizing different aspects of the transaction intelligence and machine learning into their business.
– from the creation of an invoice, to initiation of a payment, Whether this is predicting exports, foreign exchange
to the foreign exchange transaction, to payment delivery rates or the trajectory of bitcoin investments, the business
and, ultimately, reconciliation in the biller's accounting of payments will increasingly depend on these types
system. In many cases, these handoffs create added cost, of predictive models for success. How quickly will the
complexity, cycle time and lack of transparency for both industry adapt as a whole?
payer and receiver.
Mike Massaro is the CEO of Flywire, a leading provider of cross-border
Payers and receivers want solutions that work for them payment and receivables solutions. He has extensive experience in
and with the systems and tools they already like using solution engineering, sales and marketing and a history of leveraging
– whether that's integration with their invoicing and technology to solve gaps in consumer and business transactional expe-
accounting systems, choice of payment methods or local riences. His background spans global payments, mobile software and
currencies. Those "best" solutions that can plug in with hardware, and e-billing at high-growth technology companies. As CEO,
other "best" solutions will win over solutions that require he has led Flywire’s expansion in North America, Europe and Asia-Pacific
compromising capability and flexibility to run on a single regions. Contact him at mike@flywire.com.

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