The cause of these changes boils down to these 3 major things: jurisdiction, modernization, and demand. Jurisdictions enable legislation to foster payments, modernization, and openness. Increasing regulatory change is aimed at increasing competition as well through: challenger banks, foreign banks, and non-banks. Modernized and sophisticated capabilities online have been created by financial service organizations, Paytechs, and Fintechs. Demand has increased customer experience capabilities and digital payment methods through businesses and the everyday consumer as well.
How is the American and Canadian Industry Impacted by Global Payments Trends?
Here are a few places organizations are impacted by global payment trends. Businesses large and small need to be ready and prepared to respond.
• An accelerated focus in the industry ( banks, wirehouses, corporations big and small) being ahead of the digital transformation curve in payments instead of lagging behind.
• Ability to deliver on a broad array of new use cases that improve customer experience and reduce payments related to friction and do so in a cost-effective manner.
• Ability to improve their accounting, payroll, procurement-related processes with payments innovation, specifically, rich data that will come with new payments solutions
• Creating and submitting e-invoices on behalf of the client leveraging ISO 20022.
• For SMEs, a full suite of accounting services, including Accounts Receivables/Accounts Payable or API integration into accounting software (e.g. Quickbooks).
• There is increasing popularity of APIs used to expose data, functionality, and services to create better value this is known as the Open Banking trend.
Read our article on Open Banking Explained for Canadian Markets