Collaboration ‘inevitable’ for the payments industry

MAJOR payment service providers (PSPs) emerged during a time when the payment ecosystem was not nearly as vast and complex as it is today. They addressed a significant problem in the industry, paving the way for innovations that continue to shape the landscape.

In the earlier days, the payments industry was fragmented, existing in silos with companies racing to become the biggest and best within their domains. Each PSP developed its unique infrastructure, adding services and functionalities to cater to their customers and their evolving needs. This model proved successful, given the context of the time.

However, today we find ourselves in a rapidly evolving payments ecosystem. The past 10 to15 years have witnessed a proliferation of payment providers, not to mention a vast array of alternative payment methods, such as digital wallets that are predicted to make up over 52 per cent of transaction value by 2025.