Will 2017 be the year payments change for good?

Are we at the tipping point for a change in payment method?

The pace of change in the payments industry means 2017 may be the year that changes the ways we pay for good, according to a new report published by Payments UK.

The Changing Payments Landscape report examines trends over the past decade and the factors that are driving change today. It outlines the influence of regulatory and legislative developments ranging from the industry’s strategy-setting body, the Payments Strategy Forum, to the consolidation of Payment Scheme Operators including Bacs and Faster Payments.

The report assesses how they are influencing developments such as Open Banking, Confirmation of Payee and important behind-the-scenes activities like the development of new standards.

Commenting on the report, Maurice Cleaves, Chief Executive of Payments UK, said:“I have worked in the payments industry for more than thirty years, and it seems to me that we will look back on 2016 and 2017 as the time when foundations were laid that changed the ways we pay for good.

“Whether it’s the proposals for a new ‘Confirmation of Payee’ safeguard that could stop money going to the wrong account, a ‘Request to Pay’ service that gives more control and flexibility for paying bills, or ‘Enhanced Data’ that can help payments be more easily reconciled – we are on the verge of a whole range of new services that will benefit many different types of customers. In parallel, Payments Services Directive II could create entirely new types of payment companies and services, the Bank of England is creating a blueprint for a new real-time gross settlement (RTGS) system and the delivery of an API Open Banking standard will enable customers to use trusted third parties and pan-industry services to make smarter payment decisions based on their particular needs.

“With so much change on the horizon, there is now a great opportunity to continue to deliver world-class payments across the board. The industry’s collaborative know-how will be tested like never before, but with customers remaining as the industry’s key focus I’m confident great outcomes will be achieved.”

‘Changing Payments Landscape – How 2017 will change the way we pay for good’ is available to download here

(Infographic: Payments UK)