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Forbes
07-08-2025
- Business
- Forbes
Breaking Barriers: How Payments Infrastructure Is Evolving
Mustafa Khanwala is the Founder and CEO of MishiPay Ltd. Payments infrastructure may look sleek today, but the foundations were built decades ago, and many legacy dynamics still shape the industry. New players are pushing innovation faster than ever, delivering better experiences, smarter technology and faster go-to-market strategies. The payments landscape is shifting fast, shaped by legacy entrenchment, challenges facing new methods and the rise of smarter, more agile solutions. The Legacy Lock: How Traditional Banks Tied Payments And POS Together Payments and point of sale (POS) have always been deeply intertwined. As a retailer, you weren't given much choice because banks offered bundled packages: 'Do you want POS systems? We'll provide POS and payment processing.' This bundling built powerful relationships between banks and early giants like WorldPay, Verifone and First Data. They didn't dominate by offering better tech; they tied payments to essential financial products that businesses relied on. Even today, that lock persists. The leader of a $100 million business seeking a line of credit often hears, 'We'll offer great rates if you take our payment processing.' The incumbents are still bundling payments with business-critical services, making it hard for new entrants to compete. The Rise Of The Disruptors For decades, the payments world moved slowly, tied to banking relationships, old tech and complicated onboarding. Disruptors broke that model. New providers decoupled payments from banks, focusing on speed, simplicity and APIs. Onboarding could be completed in hours. Businesses could integrate through a modern API and instantly access new payment methods. Better experiences and faster deployments allowed these companies to charge premium margins—something legacy providers couldn't match. This model gained traction first in the U.K. and Europe, then rippled into the U.S. As more acquiring licenses opened up, barriers fell, and agility, innovation and customer experience began to matter more than legacy ties. Why New Payment Methods Struggle To Break Through When people ask why new payment methods like open banking haven't exploded in markets like the U.K. or U.S, the answer comes down to a few key points: entrenched networks, superior user experiences and the lack of a true 'sign-up moment.' Strong companies like Visa and MasterCard want to keep their structures firmly in place. They're deeply embedded across merchants, banks and consumer habits due to the sheer entrenchment of their systems globally. When open banking launched, it wasn't offering a dramatically better experience for consumers in the U.K. and U.S., because we already have systems such as Apple Pay. And looking at it from a user experience perspective, Apple Pay and open banking are the same. You tap, you authenticate with Face ID or Touch ID, and you're done. There was no compelling reason for the average consumer to switch to something new. Compare that to markets like India or China, where open banking services like WeChat Pay, PayTM and UPI emerged because services like Apple Pay or Google Pay weren't established. Those ecosystems were wide open for disruption because the baseline experience was still more manual. Beyond that, there's the 'sign-up moment.' In London, for example, when the London Metro enabled direct TAP access with your bank card during the Olympics, it created a huge inflection point. Millions of people were given a reason to use contactless payments seamlessly and necessarily. Open banking never had a moment like that in Westernwestern markets, a large-scale, practical reason for consumers to try something new. Without a better experience and a catalyst moment, new payment methods have struggled to break through. The bar for changing consumer behavior in payments is incredibly high, and Visa, MasterCard and contactless wallets still meet or exceed that bar. The Critical Role Of POS Evolution The future of payments is about fully integrated POS systems. That's why Fiserv acquired Clover, and Square bundled payment processing with its POS offering. Controlling both sides lowers costs and deepens merchant relationships. But scaling from small businesses to enterprises is tough. Large retailers can't afford one minute of POS downtime—it would mean a massive loss of revenue. Enterprise businesses demand industrial-grade reliability, uptime and performance, making it difficult for some providers to move upmarket. They need to be able to guarantee operational scale. How Customer Expectations Are Driving Change Customer expectations are now the biggest force reshaping payments. Consumers want the fastest, best and cheapest experience. That's why buy now, pay later (BNPL) models like Klarna took off. They made it easy: users were already signed up and could split payments instantly. The experience stayed fast and simple, while purchasing power improved. Today, it's not enough to offer cheaper processing behind the scenes. You have to improve the customer experience while making it easier on their wallets. Without both, adoption stalls. What's Next: Wallets, Credit Products And Embedded Finance The next wave of disruption will come from smarter credit products, digital wallets and embedded financial services. Credit options like BNPL are just the beginning. Companies like Adyen and Stripe already offer microloans based on real transaction histories, not outdated credit scores. Instead of applying for financing the old way, retailers can access capital instantly, based on how their business is performing. Wallets will also keep expanding. Apple Pay offers a great tap-to-pay experience, but the future is about more than speed. Wallets will soon integrate payment, financing, loyalty and even identity into one seamless platform. We're also starting to see true frictionless commerce with biometric payments. On Yas Island in Abu Dhabi, visitors link their Face ID to a wallet and pay for rides, food and shopping without pulling out a card or phone. It's faster, smarter and better for both consumers and merchants. The payments industry is moving faster than ever, but the challenges of legacy systems, customer expectations and operational scale aren't going away. Success will come to those who can blend the best of both worlds, delivering smarter, more affordable solutions without sacrificing the seamless experiences that consumers and businesses demand. Payments infrastructure may look sleek today, but the foundations were built decades ago, and many legacy dynamics still shape the industry. New players are pushing innovation faster than ever, delivering better experiences, smarter technology and faster go-to-market strategies. The payments landscape is shifting fast, shaped by legacy entrenchment, challenges facing new methods and the rise of smarter, more agile solutions. The Legacy Lock: How Traditional Banks Tied Payments And POS Together Payments and point of sale (POS) have always been deeply intertwined. As a retailer, you weren't given much choice because banks offered bundled packages: 'Do you want POS systems? We'll provide POS and payment processing.' This bundling built powerful relationships between banks and early giants like WorldPay, Verifone and First Data. They didn't dominate by offering better tech; they tied payments to essential financial products that businesses relied on. Even today, that lock persists. The leader of a $100 million business seeking a line of credit often hears, 'We'll offer great rates if you take our payment processing.' The incumbents are still bundling payments with business-critical services, making it hard for new entrants to compete. The Rise Of The Disruptors For decades, the payments world moved slowly, tied to banking relationships, old tech and complicated onboarding. Disruptors broke that model. New providers decoupled payments from banks, focusing on speed, simplicity and APIs. Onboarding could be completed in hours. Businesses could integrate through a modern API and instantly access new payment methods. Better experiences and faster deployments allowed these companies to charge premium margins—something legacy providers couldn't match. This model gained traction first in the U.K. and Europe, then rippled into the U.S. As more acquiring licenses opened up, barriers fell, and agility, innovation and customer experience began to matter more than legacy ties. Why New Payment Methods Struggle To Break Through When people ask why new payment methods like open banking haven't exploded in markets like the U.K. or U.S, the answer comes down to a few key points: entrenched networks, superior user experiences and the lack of a true 'sign-up moment.' Strong companies like Visa and MasterCard want to keep their structures firmly in place. They're deeply embedded across merchants, banks and consumer habits due to the sheer entrenchment of their systems globally. When open banking launched, it wasn't offering a dramatically better experience for consumers in the U.K. and U.S., because we already have systems such as Apple Pay. And looking at it from a user experience perspective, Apple Pay and open banking are the same. You tap, you authenticate with Face ID or Touch ID, and you're done. There was no compelling reason for the average consumer to switch to something new. Compare that to markets like India or China, where open banking services like WeChat Pay, PayTM and UPI emerged because services like Apple Pay or Google Pay weren't established. Those ecosystems were wide open for disruption because the baseline experience was still more manual. Beyond that, there's the 'sign-up moment.' In London, for example, when the London Metro enabled direct TAP access with your bank card during the Olympics, it created a huge inflection point. Millions of people were given a reason to use contactless payments seamlessly and necessarily. Open banking never had a moment like that in Westernwestern markets, a large-scale, practical reason for consumers to try something new. Without a better experience and a catalyst moment, new payment methods have struggled to break through. The bar for changing consumer behavior in payments is incredibly high, and Visa, MasterCard and contactless wallets still meet or exceed that bar. The Critical Role Of POS Evolution The future of payments is about fully integrated POS systems. That's why Fiserv acquired Clover, and Square bundled payment processing with its POS offering. Controlling both sides lowers costs and deepens merchant relationships. But scaling from small businesses to enterprises is tough. Large retailers can't afford one minute of POS downtime—it would mean a massive loss of revenue. Enterprise businesses demand industrial-grade reliability, uptime and performance, making it difficult for some providers to move upmarket. They need to be able to guarantee operational scale. How Customer Expectations Are Driving Change Customer expectations are now the biggest force reshaping payments. Consumers want the fastest, best and cheapest experience. That's why buy now, pay later (BNPL) models like Klarna took off. They made it easy: users were already signed up and could split payments instantly. The experience stayed fast and simple, while purchasing power improved. Today, it's not enough to offer cheaper processing behind the scenes. You have to improve the customer experience while making it easier on their wallets. Without both, adoption stalls. What's Next: Wallets, Credit Products And Embedded Finance The next wave of disruption will come from smarter credit products, digital wallets and embedded financial services. Credit options like BNPL are just the beginning. Companies like Adyen and Stripe already offer microloans based on real transaction histories, not outdated credit scores. Instead of applying for financing the old way, retailers can access capital instantly, based on how their business is performing. Wallets will also keep expanding. Apple Pay offers a great tap-to-pay experience, but the future is about more than speed. Wallets will soon integrate payment, financing, loyalty and even identity into one seamless platform. We're also starting to see true frictionless commerce with biometric payments. On Yas Island in Abu Dhabi, visitors link their Face ID to a wallet and pay for rides, food and shopping without pulling out a card or phone. It's faster, smarter and better for both consumers and merchants. The payments industry is moving faster than ever, but the challenges of legacy systems, customer expectations and operational scale aren't going away. Success will come to those who can blend the best of both worlds, delivering smarter, more affordable solutions without sacrificing the seamless experiences that consumers and businesses demand. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Arabian Post
04-06-2025
- Business
- Arabian Post
Stablecoins Cement Dominance in Crypto Spot Trading
Stablecoins now account for over 80% of total spot trading volume in the cryptocurrency market in 2025, solidifying their position as the primary medium of exchange across major digital asset platforms. This shift marks a significant evolution in the structure of crypto markets, where fiat-backed digital tokens have overtaken traditional currency pairs in trading activity. Tether's USDT leads this transformation, commanding approximately 80% of stablecoin payment volume, underscoring its role as the most liquid and widely used asset in the ecosystem. The stablecoin market has experienced substantial growth, with its total capitalization surpassing $250 billion. This expansion is attributed to increasing institutional adoption and the demand for stable, dollar-pegged assets in volatile markets. USDT's market cap alone has exceeded $90 billion, reflecting its central role in facilitating crypto transactions. ADVERTISEMENT Regulatory developments have played a crucial role in this growth. In the United States, the proposed Guiding and Establishing National Innovation for U.S. Stablecoins Act aims to provide a comprehensive regulatory framework for stablecoins, encouraging broader issuance by traditional financial institutions. Similarly, the European Union's Markets in Crypto-Assets regulation, effective from December 2024, offers legal clarity for crypto assets, including stablecoins, fostering their integration into the financial system. The dominance of stablecoins is also evident in trading behaviors. USDT pairs, such as BTC/USDT and ETH/USDT, have become the preferred trading pairs on major exchanges, offering high liquidity and minimal slippage. This preference is particularly pronounced during periods of market volatility, where traders seek the stability of dollar-pegged assets. The integration of stablecoins into traditional financial systems is further exemplified by their use in cross-border payments and settlements. Companies like WorldPay have reported a 50% reduction in settlement times through the adoption of stablecoin-based systems. Additionally, the use of stablecoins in cross-border transactions is gaining traction in regions like Asia and Europe, where regulatory clarity and technological infrastructure support their adoption. The strategic importance of stablecoins is underscored by their growing role in global finance. With the majority of stablecoins pegged to the U.S. dollar, they reinforce the dollar's dominance in international trade and finance. This trend is expected to continue as regulatory frameworks mature and institutional adoption increases.
Yahoo
01-06-2025
- Business
- Yahoo
Special Edition: Network Effect Podcast With Ahmed Zifzaf
Recorded live from the Global Dollar Network event, Network Effect in New York City please enjoy this conversation with Ahmed Zifzaf, Head of Crypto Partnerships, WorldPay and CoinDesk Indices' Andy Baehr. Sign in to access your portfolio
Forbes
21-05-2025
- Business
- Forbes
How Retailers Can Engage Shoppers Across Generations In 2025
As CTO of Engage People Inc. Len Covello helps companies differentiate loyalty programs to deliver a better experience for their customers. getty It's becoming increasingly clear that members of different generations have distinctly different shopping habits— and thus, different preferences for what they want from retail loyalty programs. For retailers, it can be difficult to navigate how to effectively tailor products, offerings and even communications to satisfy the needs of shoppers, no matter their age. One thing is clear, though. Regardless of generation, loyalty program members want to maximize program value through monetary benefits. According to Deloitte, "eight out of 10 consumers said earning and redeeming financial rewards was the most important attribute when looking for a loyalty program." While financial rewards are top of mind across the board, there are generational differences that retailers should be aware of and tap into. Below is a look at what the data shows and how retailers can implement strategies to foster loyalty across generations. Various factors are causing consumers to abandon even their most beloved brands. It often comes down to cost savings, convenience and finding better deals elsewhere, but there are also challenges within loyalty programs themselves that can cause members to disengage. Out of all generations, Baby Boomers are the least loyal, according to WorldPay. Their research found that personalization, rewards that don't expire and the ability to redeem across retailers are the most important attributes of loyalty programs for this generation. Retailers looking to capture engagement from Boomers should plan their perks and communications accordingly if they want to fuel engagement. Keep in mind that unclear rules can also lead older loyalty members to disengage. When it comes to younger generations, particularly Millennials, they're looking for rewards with a deeper meaning, Worldpay found, and members of Gen X through Gen Y crave rewards that aren't linked to spend. For younger generations who want to use their points to make an impact and older generations who want to use their points across the retail ecosystem, 'pay with points' could be the ticket to fueling engagement. My company recently commissioned a survey with The Wise Marketer and found that 78% of those surveyed would engage in loyalty programs more if they could exchange points for cash-like value. This gives customers across generations more choice, similar to what they'd expect from cashback incentives, while keeping an intimate connection with the rewards and the retailer. Experiential rewards, where brands reward loyalty members for participating in various brand-aligned activities, are on the rise. But that doesn't mean everyone has bought into them. While experiential rewards are useful for engaging millennials and Gen Z, older consumers focus more on immediate financial benefits. In addition, younger consumers show a stronger preference for experiential benefits and novel customer experiences, according to the Deloitte research cited above. They want stronger digital capabilities and a sense of community. These are just a few areas that indicate members of each generation have different preferences and needs when it comes to loyalty programs. Breaking this down further, loyalty program basics like discounts and promotions are demanded by members of the Silver Generation, particularly those age 70 and older, whereas members of Gen Z want access to quality products. Considering loyalty program participants' diverse needs and demands, it's more important than ever that retailers adopt omnichannel experiences. This ensures that each member has a streamlined shopping experience regardless of how they engage—whether in-store or through email, which is preferred by older generations, or on social media and via apps for younger members. The good news for retailers is that they don't have to pull out all the stops to appease every member of every generation. Trying to please everyone dilutes brand identity. It's important to focus on core customer segments while ensuring inclusiveness, and there are a few strategies to consider to find that balance. One is to evolve loyalty programs with new tools to engage effectively with target customer segments. This includes leveraging AI to inform tailored messages and offers. AI recommendations can help ensure that promotions remain relevant across members of different age groups. In addition, tools like AI-powered chat, personalized push notifications and interactive mobile experiences can build up engagement among younger generations who prefer to interact digitally. That's in addition to user-generated content and gamification. Brands looking to ramp up digital engagement should consider the plethora of tools at their disposal. Gamification, for example, helps fuel a sense of belonging, which younger consumers crave. When it comes to earning and redeeming, instant is best. Allowing customers to leverage their rewards instantly at the point of sale can increase engagement, whether that's through paying with points, redeeming via a gift card or earning cashback. These days, brand loyalty is not a given. Retailers have to work hard to keep their core customers engaged while opening doors for new pools of customers across generations to try their products and services. 2025 is a year for testing and learning, investing more in meeting the demands of core segments while offering diverse options that invite other generations to the table. While testing and learning, one thing is certain: Retailers must remember that amid ongoing economic uncertainty, offering strong financial rewards as part of their loyalty programs is key. That's something members across all generations want. Without it, loyalty programs will fall flat. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Forbes
29-04-2025
- Business
- Forbes
Integrating Digital Payments: A Strategic Imperative For Small Business Resilience
Vikas Mendhe is a solution architect and digital transformation expert specializing in API-driven solutions in financial technology. As consumer behavior shifts rapidly toward digital-first experiences, small businesses must evolve or risk falling behind. Digital payments are no longer a luxury—they're a necessity. From mobile wallets and QR codes to Buy Now, Pay Later (BNPL) and AI-powered fraud prevention, today's payment ecosystem offers incredible opportunities. WorldPay, a global payment processing company, forecasts digital payments will account for 79% of e-commerce value and 53% of in-person transactions by 2030. The global payment landscape has transformed dramatically. Customers expect faster, easier ways to pay. Whether it's tapping a phone to pay in-store or using a Buy Now, Pay Later option online, shoppers prefer businesses that make the process simple. For small businesses, this shift means more sales, bigger purchases and better cash flow. In a competitive market, offering modern payment options helps small businesses attract and keep loyal customers. Digital payments simplify operations beyond customer convenience. Automation reduces manual work like invoicing, tax and reporting. Integration with accounting tools improves cash flow visibility, enabling faster, informed decisions. Even though digital payments offer big benefits, many small businesses find it hard to set them up. Most business owners don't have an IT team to help with the process. Picking the right payment system, setting up the connections and making sure it works with their current setup can feel confusing and overwhelming. Another challenge is cost. Even though digital payment tools can save money over time, getting started can be expensive. Small businesses may need to buy new systems, devices that support contactless payments and software licenses. This upfront cost can be hard to manage. Security and following the rules are ongoing concerns for small businesses. Many owners don't fully understand standards like PCI DSS, which are meant to protect payment information. Even when small businesses use outside services to help, many still have a hard time staying fully compliant. Small businesses often struggle with serious cash flow problems due to frequent delays in receiving payments. While access to instant payments is still limited for many of them, it's a vital solution that can help smaller firms manage their finances more effectively. To deal with these challenges, small businesses need a smart and simple plan. A good first step is to use easy-to-set-up, cloud-based payment systems like Stripe, Square or PayPal. These tools are user-friendly, come with built-in support and don't require a lot of technical setup. They also offer helpful features like fraud protection, help with following payment rules and the ability to grow as the business grows. For budget-conscious businesses, QR code payments and peer-to-peer apps like Zelle, Cash App and Venmo are affordable options. They are easy to use and don't cost much. Some businesses also use platforms like Coinbase Commerce to accept cryptocurrency, which can save on regular transaction fees and help them stay up to date with future payment trends. Training and education are important for long-term success. Payment providers should offer easy-to-follow guides, online workshops and support teams to help business owners and staff understand the system and follow the rules. Payments are a key service for financial institutions (FIs) to win and retain small business clients. Offering features like automation, real-time payments and clear reporting can drive loyalty, especially as many small businesses are open to switching providers. Since most small businesses are willing to pay fees for instant access to their funds, financial institutions have a clear opportunity to generate revenue by offering real-time payment solutions tailored to this segment. Many small businesses lack payment expertise and struggle with choosing the right options online. This gives FIs a chance to guide them, strengthening trust and relationships. They also seek data-driven insights to make smarter financial decisions and improve efficiency. Additionally, small businesses want timely alerts about payments at risk of being late so they can proactively address potential issues before they impact operations. More than half of small businesses suffer from late payments in the U.K. Buy Now, Pay Later services are rapidly becoming a game-changer for online and retail businesses. Providers like Klarna, Afterpay and Affirm allow customers to split their payments into interest-free installments. This not only boosts customer purchasing power but also significantly improves conversion rates. Government-backed instant payment systems have emerged as critical infrastructure for consumer payments. Instant payment systems combine payment authorization and settlement into a single process, allowing funds to transfer in seconds. Account-to-account transfers via various instant payment systems now account for 17% of e-commerce and 4% of physical retail regional transaction value in Europe. Looking ahead, AI-driven fraud prevention, embedded finance and subscription billing are transforming small business payments. These tools enhance security, offer predictive insights and support smarter decision-making. Embedded payment features like integrating checkout directly within social media or business platforms will reduce friction and increase conversion. Accenture projects social commerce to hit $1.2 trillion by 2025, driven largely by Gen Z and millennials. Subscription models are gaining popularity, providing steady revenue and improving retention. Shopify notes that 58% of consumers say great service impacts their buying decisions, with 43% likely to use live chat soon. Small businesses that embrace these trends early will lead, not follow. The integration of digital payments is more than a technical upgrade—it's a transformation that touches every part of a business. While challenges exist, the solutions are within reach. By adopting the right tools, forming strategic partnerships and investing in education, small businesses can thrive in this digital-first economy. Now is the time to move beyond hesitation and into action. Small businesses that prioritize smart payment integration today will not only increase sales and efficiency but will also be better prepared for the innovations of tomorrow. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
