Dec 16, 2020
The way we pay for goods and services has evolved constantly over the past 50 years.
Service providers such as Visa and Mastercard became a feature of daily life. We discovered PayPal, Apple Pay and Alipay, and then found that our mobile phones were all we needed to shop. As the means of payment changed, whole infrastructures adapted and developed around them.
Today’s unprecedented pace of technological change, indicates that payments are not just being disrupted, but utterly transformed by new technology.
Fintechs are injecting greater innovation, collaboration and competition into the payments arena and broader financial services. The advent of digital currencies has spurred a wave of research from governments and central banks. There is much potential for profound changes in how central banks can promote better speed, security and access to payments.
The shift from the age-old reliance on physical cash poses problems but also provides opportunities - particularly in the developing world. Innovation in payments must consider accessibility, affordability and inclusion for those on the periphery of the financial and payments infrastructure.
Regulators need to keep pace with these innovations. New, non-traditional payment entities will emerge as systemically important components of the financial system. Proactive central banks and regulators, keen to harness the benefits of payments innovation without undue policy risks, engage more with industry.
We’re excited to bring you insights for the future from across the payments industry, through a collaboration with OMFIF (Official Monetary & Financial Institutions Forum) DMI (Digital Monetary Institute), a high-level group which convenes policy-makers, technologists, financiers and regulators to explore the challenges and opportunities of digital finance.
This landmark report builds on OMFIF fields research and survey work and pulls in contributions and perspectives from Algorand, Citi, Cypherium, GrabPay, Mastercard, Novi (from Facebook), PayPal and SWIFT. It examines how the future of payments will look, and surveys central banks’ and regulators’ opinions as to the challenges and opportunities they face.