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Open Payments Require Collaboration for Successful Innovation

Applying this analogy to the business of payments may seem unconventional, but if you were to sit back and think about what is happening in the ecosystem today, you will note the similarities. We are witnessing the initial planting of seeds in the first steps toward opening up access to the banking and payment services

Partnerships are Crucial to Navigate the New Payments Ecosystem 

PSD2 has ushered in a willingness to cooperate and partner the likes of which we have never seen in our industry. This is partially because it has been dictated to the institutions from the markets’ governing authorities. But I believe most of us view this shift as a seasonal change, providing the opportunity to survive, but also necessary for long-term survival. The comfortable borders we all enjoyed in the ‘old’ ecosystem were well defined and each participant, either by a gentleman’s agreement or lack of desire or ability, stayed more or less within their patch, with minimal threat to their business models. As we transition to the New Payments Ecosystem, those borders have suddenly disappeared, and the tidy garden has become a wildflower meadow, with new varieties and species competing for space.  

Rethinking Payments in an Open Ecosystem 

What we have seen in response to this change is the exposure of APIs for business services, data access, and endpoints. Banks, processors, merchant service providers, financial service firms and startups are all working in this garden together to grow new solutions that will solve emerging consumer needs and pain points. The ability to completely rethink banking and payments, from the services and products to the way in which we send and receive payments (either from friends and family, or our employers), is in play. Imagine getting paid hourly for your salary job, every hour on the hour, or being able to pay your utility bills every night as you turn off your light. You could reduce the rate you pay on that service with prompt payment. In the past, these ideas were held back by technical limitations, but now the brightest minds in our world can start to play with the new tools, thanks to payments technology evolution.  

We are just starting to see the first seeds sown in our garden. The exposure of APIs and the growth of this market has to be carefully watched, nurtured and maintained by the watchful green thumbs all around us. I, for one, can’t wait to see what we reap at harvest time! 

Want to find out more about making the most of the opportunities the Open ecosystem holds? Download our eBook: OPEN! Open payments and their impact.

Head of Digital Banking Solutions

As the Head of Digital Banking Solutions, Mark works closely with financial institutions discussing, exploring, and examining market trends and key drivers in the evolving digital solutions space with a key focus on mobile, tablet and the future of wearable technology. Prior to moving into the sales organization Mark was Senior Product Marketing Manager for ACI's Digital Banking solutions. He was responsible for developing and executing product launch and go to market activities for the related product lines. Prior to joining ACI in 2012, Mark worked at Greenwich Associates as a Senior Project Director on their Custom Projects team. Mark holds a Bachelor of Arts from Lafayette College.  The future of Fintech and where the digital banking evolution will take us is at the heart of what Mark reads about, researches, discusses, promotes and debates. As a proud card carrying millennial, Mark's primary goal is to bring a fresh yet informed point of view to the discussion. It is truly an exciting time to be in the industry as everything down to the foundation of the financial society is being challenged by innovative individuals and start-ups alike. Mark looks forward to helping companies and banks alike navigate the disruptive environment they are in today towards a successful future.

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