The World of Payments in 2019

The Movement of Money


The payments landscape is broad, and the many changes occurring within the financial industry are from the FinTech and RegTech segments. Gone are the days when you are required to carry a cheque book to get a transaction across the line. Soon physical plastic credit and debit cards will be as ancient as cheque books. The old school methods of payments are dying out, and digital forms payments are replacing the traditional.

In 2019 we discovered that major corporations around the world all had a vested interest in paving the way or exploring the future forms of digital money and the encompassing ecosystems that will drive the exchange throughout the world of payments.

If we were to go through an overview of the payments landscape, we would be able to identify the value chain within. The credit card and debit card value chain, begin with the merchant and end with the cardholder. We could explain it as follows;

The Merchant

The Acquiring Functions

The Card Network

The Issuing Bank

The Card Holder

The significance of explaining the current value chain is due to the rapid investment and development of new payment solutions and the future interconnected methods that will enable every person to pay for goods and services with ease across multiple platforms. For example, in today's world, we head to a shopping centre, browse through the products on offer and make a selection then proceed to the till or Point-of-Sale to conclude the purchase. The PoS is static in this instance. Yet, with the astronomical increase in e-commerce activity, the shift to payment ecosystems and solutions has been the main focus in 2019. The objective is to architect a more structured yet fluid methodology around PoS solutions. Artificial Intelligence has been deployed throughout the payments ecosystem enabling the change in payments to encompass e-wallets.

What are Electronic Wallets, also known as E-Wallets or Digital Wallets?

These wallets are electronic versions of your payment cards that are authorised to conduct transactions on your behalf. These wallets are generally located on devices like smartphones, desktops or notebooks. Your e-wallet contains your specific debit of credit cards that you have linked to your e-wallet, which may also be connected directly to your bank account. The physical benefit of not having to carry your wallet, purse, debit cards or credit cards in physical form continues to be widely adopted, even more so in Asia in comparison to the rest of the world.

So besides the convenience factor, what are the other advantages of having an e-wallet? There are several, but I will cover off the three main benefits of e-wallets.

  1. An e-wallet can contain many payment types in one location and in addition, also links up to your loyalty rewards cards associated with your various card loyalty programs. Allowing you to carry less and yet accomplish more. As more providers improve on the compatibility gaps across platforms, the opportunities to link seamless transactions across platforms continues to expand.
  2. Having an e-wallet draws less attention to you and you are protected by the security protocols of your device and the applications that connect you to your banks. You are then freed from having to carry large sums of cash and become a harder target for opportunistic criminals. In short, less risk and more security. Transacting also requires users to authorise every transaction through biometrics or PIN.
  3. More retailers and online stores are accepting e-wallets to allow multiple options of payment and smoother transactions that encourage rewards to purchases. As AI (Artificial Intelligence) algorithms learn your habits of spending, there are cost benefits offered to you as you go about your daily transacting life. These same algorithms could assist you with bargain hunting and money management.

FinTech businesses are being promoted and tested at a staggering pace all around the globe to extract maximum value over the shortest time frame. We call the testing phase of FinTechs within a confined environment "sandboxing".

You may have heard of "Worldpay" as it is a credit card processor which offers a secure proprietary platform that allows organisations to accept a wide array of payment types. WorldPay integrates with numerous business systems and applications that include ApplePay, QuickBooks, Oracle, NCR, and CyberSource. You can also import WorldPay data into PayPal to generate user reports within your PayPal account. Worldpay also allows users to accept PayPal transactions through their Business Gateway account. This will enable you to be able to view your transactions in one place while customers receive an accelerated checkout process. The flexibility and versatility of platforms like Worldpay are insights into the activity and level of activity taking shape in the world of payments.

P2P Payments

There have also been significant developments across P2P payments worldwide. P2P stands for peer to peer payments that allows funds to be transferred between to parties using their individual banking accounts, credit cards or via mobile apps such as Alipay or WeChat. We could call the two examples of Alipay and WeChat, closed-loop ecosystems. Closed-Looped ecosystems work to the benefit of consumers and merchants. It works as follows;


Transfer into mobile wallets of Alipay or WeChat

Shopping experience online or offline

The fear for banks and card networks is that P2P payments might be able to sidestep the banks and card networks to survive and ultimately thrive independent of the financial institutes that have dominated payment services for multiple decades.

P2P of tomorrow would look more like this;


Transfer into a mobile wallet

First P2P, then shop online and offline 

If you are interested to learn more about payments and would like to discover the options on hand for your business, then reach out to explore the services and solutions we offer.


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