Payment trends series #3 - The New Payments Ecosystem

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Evolution of the Payments Ecosystem

The third instalment of the series, The New Payments Ecosystem, explores the transformation within the payments ecosystem that is powering the acceleration of payments convergence and the shift in value of a payment. We consider new entrants into the payments ecosystem and strategic pivots made by traditional payments players, how these interactions are being reshaped, and which models are starting to emerge that may have a profound impact on the way value is being created in the new payments ecosystem. 

Direct customer owner -The direct customer owner provides a platform through which customers can make and receive payments through an interface. Direct customer owners typically have their own digital wallet or e-wallet that provides an application that allows users to make payments.

Payment Intermediator - Payment intermediaries act as a bridge between merchants and purchasing customers. They provide both confidence to buyers and a means of ensuring payments to sellers. The growth in e-commerce has driven the adoption of electronic payments and prompted both incumbent and non-bank entrants to innovate their product offerings to penetrate this space. 

Payment hybrid - Connects owners and intermediaries who produce units that act as a "one-stop-shop" for buyers and sellers. These hybrid businesses operate on both sides of a two-sided market, serving both businesses and third-party payment processors, as well as consumers, using applications or online platforms that facilitate retail transactions.