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CoverStory

ceived challenge to traditional payment processing, as prises.
I recall, was Google Wallet in 2011. A lot of us had a
scare that the whole niche industry would be gone in a • Maintain agility and flexibility with the expecta-
flash. It didn't disappear, and more seemingly unstop- tion of change. For example, we may not know for
pable challenges have come along since then, with the certain how local and national regulations around
core function and service remaining more or less un- fees, consumer protection or privacy will evolve.
changed. But we are certain there will be changes and the
best companies will be able to respond nimbly to
2. Get ready for settlement in stablecoin: Visa Ramp in these and other market disruptions.
Europe is already acquiring with settlement in stable- Dee Karawadra
coin. It's just a question of time before the same comes
to the United States, in particular with the openness of Impact PaySystem
the current administration to crypto. The payments industry has a Ph.D. in handling curve-
balls. Recessions? We pivot. Startups trying to eat our
Be careful of wiz-bang POS platforms: A number of lunch? We adapt. Compliance nightmares? We drink …
ISOs have put a lot of eggs in one basket with neat cloud- and then we comply. Every time we think we’ve seen it
based POS systems. When those systems fail, ISOs can all, something new pops up: regulation changes, lawsuits,
lose their whole portfolio. ISOs should always have a fraud schemes that look like they were cooked up in a
Plan B system for merchants to use if the primary POS Hollywood script. And yet, here we are, not just surviv-
system disappears. ing, but thriving.
Rod Hometh
RPY Innovations Why? Because payments isn’t just about processing trans-
actions—it’s about keeping businesses running. When
1. Why the payments industry continues to thrive: things get tough, merchants still need to get paid, con-
The payments industry is foundational and evergreen sumers still need to buy, and we still need to find new
because it serves the fundamental exchange of value for ways to make all of that smoother, safer and more profit-
goods and services. As a result, interest in investment able.
remains at high levels regardless of economic condi-
tions. Even when confronted with challenges the pay- The next 12 months won’t be any different. Here’s what’s
ments industry demonstrates remarkable resilience. coming and how we prepare:

By quickly integrating emerging technologies such as 1. Embedded everything: Payments alone isn’t enough.
mobile wallets and real-time payments, we have been If you’re not layering in software, lending or something
able to not only maintain market relevance but also set that makes your merchants’ lives easier, you’ll be left in
new standards for efficiency, security and the customer the dust.
experience. 2. Regulation: As always, expect more crackdowns on
surcharging, compliance headaches and card brands
In addition, the payments industry’s data-driven ap- making life interesting.
proach helps us stay ahead of threats. Rigorous ana-
lytics enable real-time detection of fraudulent activity, 3. AI: AI is coming for fraudsters and underwriting de-
and ongoing monitoring of legislative changes ensures cisions alike. If you’re still making risk decisions like
that we can remain responsive. This alertness is criti- it’s 2010, good luck.
cal when responding to curveballs like data breaches or
regulatory shifts. 4. Changing merchant expectations: The new genera-
tion of merchants don’t just want to accept payments;
2. Plans payments enterprises should have in place they want a complete business solution. If you’re not of-
for challenges in the next 12 months? fering integrations, automation and insights, someone
else will.
• Good business fundamentals should remain a
priority. Payments enterprises should have robust Patti Murphy
contingency plans that include diversified revenue ProScribes Ink
streams and scalable infrastructure. Conduct regu-
lar stress tests on operational processes, and engage The resiliency of our industry reflects the entrepreneurial
in scenario planning. spirit of those who make up the industry, and the fact that
payments are the fuel that keeps the economy running.
• Equally important is the old-fashioned act of
maintaining open lines of communication with The second point cannot be understated. In the best of
regulators and industry peers. Stay alert and stay economic times people spend money seemingly with
connected to minimize the likelihood of real sur- wild abandon. When times are bad they don’t stop spend-

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