the new payments ecosystem - aci worldwide · the new payments ecosystem is fast, open and secure...
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CONSUMERSCORPORATES
SMEs
MERCHANTS ISSUERS
ACQUIRERS PROCESSORS& NETWORKS
ACISCHEME
THE NEW PAYMENTS ECOSYSTEM
The New Payments Ecosystem is fast, open and secure and thrives on disruption.
INF6093 10-16
The introduction of cards was a game-changer for payments. It is organized, secure and trusted; however, the
advent of new payment methods has highlighted that it can be restricted and inaccessible in nature.
What does the traditional payments landscape look like today?
Merchants, businesses and consumers are demanding more choice and flexibility from
payment providers. At the same time, schemes, technology firms and regulators are
intensifying the disruption with new policies and standards.
How is the traditional payments landscape changing?
The payments landscape will become increasingly fragmented as RegTech levels the playing field.
New technologies and business models such as Open APIs, platform payments and immediate
payments will drive continued innovation that shapes the New Payments Ecosystem.
What does the future payments landscape look like and how should payment providers prepare?
New entrants and existing players are embracing the disruption in the pursuit of modern payment platforms.
Who is challenging the current paymentsenvironment and what is their motivation?
The last millennium experienced steady incremental innovation in payments with card the principal disruptive element. Today, regulators and consumers are
demanding FAST, OPEN and SECURE payments causing the pace of innovationto accelerate and payment models to become fragmented.
Welcome to a new era of DISRUPTION in payments!
Google Wallet
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Paym
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1973250 De La Rue Barclaycash machines are in operation throughout Britain
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1986The first standard for smart payment cards is deployed in France
Google Wallet
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2012ACI introduces UP Framework for next generation payments
2009The launch of Uber sparks debate as to what extent “uberization” will displace traditional business models
2015ACI receives Technology Aggregator Accreditation for UK’s New Access Model
2016ACI launches its SaaS-based UP eCommerce Payments solution
Credit Cards
Debit Cards
ATMs
? Augmented Reality
? Virtual Reality
? IOT
Charge Cards
Cash
Online Banking & Shopping
Payment by text message & contactless payment
EMV Standard
In-App Payments
Mobile Wallets
Tokenization
IS0 20022
mPOS
PayPal acquires Braintree
PSD2
Wechat introduces first virtual Hong Bao
Apple Pay / Samsung Pay / Android Pay
Internet of Things
SEPA Inst
New Access Model UK Faster Payments
Distributed Ledger & CrypotcurrencyFaster Payments UK
Open APIs
Social Payments
Electronic Bill PaymentsAmazon & eBay launch
?
Regional regulatory initiatives such as implementation of immediate payments systems cascading to a global scale
2008Faster Payments is the first new payments system to be introduced in the UK for over 20 years
Demanding instant, secure
personalized choice
CONSUMERSCORPORATES
SMEs
Impact by challenger banks & FinTechs
Increase of fraud
Demand for innovative new products
Legacy systems no longer fit for purpose
BANKS
Revenues under pressure
Demand for value-added services
Need to growvolumes
Card to non-card payments
PROCESSORS& NETWORKS
MERCHANTS
Increase of fraud
Demand for new ways to pay
Demand for omni-channel
BlockchainOpen APIs
Internet of thingsSaaSPaaS
TECHNOLOGY
EMVInterchange/MIF
Immediate paymentsRewardsLoyalty
SCHEMES
PSD2Interchange/MIF
Immediate paymentsSEPA Inst
Scheme consolidation
REGULATORS
PO
LIC
Y &
STA
ND
AR
DS
Online payment platforms
mPOS
P2P Social
Embedded payments
Mobile payments
eWallets
P2P social
P2P lending
Immediate payments
Account 2 account
Bill pay providers
Online payment platforms
Direct connect
New payment methods
Remittance
eWallet
Mobile payments
Cash management
P2P lending
Cross border
CONSUMERSCORPORATES
SMEs
BANKS PROCESSORS& NETWORKS
MERCHANTS
NEWENTRANT
NEWENTRANT
NEWENTRANT
REGULATORS,TECHNOLOGY
SCHEMES
NEWENTRANT
NEW PAYMENTECOSYSTEM
PLAYERS
Banks, Processors, BigTechs, FinTechs,
Central Infrastructures, Networks, PSPs, ISOs,
VARS, Merchants, Corporates, SMEs,
Consumers
DATA PROTECTION
CRYPTOCURRENCIES
CUSTOMER EXPERIENCE
TOKENISATION
CROSS-BORDER PAYMENTS
BLOCKCHAIN
ALWAYS ON
OPEN APIs
IMMEDIATE PAYMENTS
INTERCHANGE
POS / m-POS
SEPA INSTCENTRAL INFRASTRUCTURESNEW WAYS TO PAY
BIG DATA
NATIONAL REGULATION
KYC
PLATFORM PAYMENTSPSD2
LOCAL REGULATION
API GATEWAYS
OMNI-CHANNEL
ACCOUNT TO ACCOUNT
INTERNET OF THINGS
PASSPORTING
ACCOUNT INFORMATIONSERVICE PROVIDERS
PAYMENT INITIATIONSERVICE PROVIDERS
PEER TO PEER
XS2A
IMMEDIATE SETTLEMENT
eWALLETS
EMBEDDED PAYMENTS
AUTHENTICATION
eCOMMERCE / xCOMMERCE
VIRTUAL REALITY
?
?
?
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MULTIPLE WAYS TO PAY
1975ACI is founded
Over 350 ways to pay
1910$3,148 million of cash value is in circulation in the U.S.
1951 20,000 Diners Club cards are in circulation
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smart payment cards is deployed in France
We
lco
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to th
e N
ew
Paym
en
ts Eco
syste
m
Online Banking & ShoppingOnline Banking & Shopping
EMV Standard
eP
aym
en
ts shift fro
m p
hysic
al to
virtu
al
Electronic Bill PaymentsElectronic Bill PaymentsAmazon & eBay launchAmazon & eBay launch 1997
Payment by text is offered through a limited number of vending machines inthe U.S.
In-App Payments
Mobile WalletsMobile Wallets
Tokenization
IS0 20022
Distributed Ledger & CrypotcurrencyFaster Payments UK
2008Faster Payments is the first new payments system to be introduced in the UK for over 20 years
Payment by text message & contactless payment
Amazon & eBay launchAmazon & eBay launch 1997Payment by text is offered through a limited number of vending machines inthe U.S.
1994The first encrypted online payment is made between friends for Sting’s Ten Summoner’s Tales album
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2012ACI introduces UP Framework for next generation payments
Open APIsOpen APIs
Social PaymentsSocial Payments
Over 350 ways to payOver 350 ways to pay
Distributed Ledger & CrypotcurrencyDistributed Ledger & CrypotcurrencyFaster Payments UKFaster Payments UK
2015Wearable payments total close to-$35 billion worldwide, set to increase to $95 billion in 2018
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regulatory initiatives such as implementation of immediate payments systems cascading to a
initiatives such as implementation of immediate payments systems cascading to a global scale
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Regional regulatory
$95 billion in 2018
By 202530% of revenues are at risk in payments due to existing and future market disruptions
SOURCES:1910 Federal Reserve Bank of Atlanta | 1951 CreditCards.com | 1973 https://lra.le.ac.uk/bitstream/2381/8163/3/ATM_v7_wtables.pdf.txt | 1986 Wikipedia
1994 Fast Company | 1997 NearFieldCommunication.org | 2008 Faster Payments Scheme Limited | 2015 Juniper Research
Regional regulatory initiatives CapGemini | 2025 McKinsey & Company
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