Innovative Disruptions in the Payment Industry

JP Jolly shares his valuable insights into the future of the payment industry, highlighting how major disruptions and technological advancements will transform the landscape.

Key Disruptions in Payments:

• Pay by Bank: JB Jolly emphasized the anticipated shift towards a "pay by bank" model, where consumers and small businesses can directly debit from their bank accounts instead of using credit or debit cards. This model, already prevalent in Europe, promises real-time transactions and could revolutionize the U.S. payment ecosystem.
• Global Patterns: Numerous markets are experiencing this disruption at varying paces. For instance, India has already adopted real-time payments due to the lack of established credit card infrastructure, while the U.S. relies on traditional payment methods.

Role of Technology Companies:

• Tech Partnerships: JB Jolly highlighted the importance of technology companies like Tech Mahindra in supporting banks through this transition. By understanding the banks' priorities and providing efficient solutions, tech companies can facilitate the upgrade to real-time payments and enhance online and mobile banking experiences.
• Infrastructure Upgrades: Banks are increasingly investing in technology to modernize their legacy systems. Collaborating with tech partners can help them achieve their goals more efficiently, such as moving towards real-time payments or improving mobile app experiences.

Future of Payments:

• Real-Time Payments and Data: The future of payments lies in real-time transactions and the ability to reconcile data instantly. This capability is crucial for both treasury functions and payroll systems, especially for gig workers who prefer immediate payment upon task completion.
• Payroll Innovations: Real-time payroll for blue-collar workers and gig economy participants is another area poised for innovation. This shift could significantly improve financial stability for workers needing timely earnings access.

The payment industry is undergoing a transformative shift fueled by technological advancements and changing consumer expectations. As banks and tech companies partner to implement real-time payment systems, they aim to drive data-driven solutions that enhance the payment experience for businesses and consumers alike.