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All industries claim to be subject to technology-driven disruption. In many cases, that technology is simply the means by which the sector evolves. In these industries, disruption has become an of-the moment way to describe natural change or the latest new development. That’s not the case in financial services, and particularly not in payments and transactions. As providers of all kinds know well, the nature of the changes wrought by technology and the pace at which those changes subsequently become an essential feature of the landscape can be whiplash-fast. Online, mobile, digital, multi-channel, omni-channel, and invisible payments continue to fundamentally change not just the services that payment providers deliver, but who those service providers are.
The complex, diverse and fragmented payments landscape that has resulted creates challenges for all participants. Even the fintechs that led the disruptive wave are facing challenges of their own – often around trust, scale and compliance. Having dislodged traditional providers from various payment processes, they are now feeling the first cold fingers of disintermediation as potential replacements come onto the market.
While all this is going on, there is one specific problem faced by fintechs and traditional financial institutions alike. Payments are becoming an integral part of the service offered by the retail, travel, and hospitality sectors among others. Payments are becoming invisible. And, in their effort to create a seamless experience for customers in a fragmented market, so do payment providers of all backgrounds.
As we explore in this paper, the digital success that has created a demand for invisible payments is appreciated by customers but is turning payments back into a commodity service – just another way to enable the dopamine rush produced by other, exciting and more customer-facing services or businesses. We look at the implications of invisible payments, and how providers will fit into this invisible world, and how they can avoid being swept away by the next wave of technological change.
