What’s Next for the Future of Payments?

This article was first published on Insights – Ripple

International Payments Will Continue to Get Faster and Smaller
Payment providers and banks will continue to offer ever faster cross-border payment services to their customers, enabling them to send and receive low-cost payments in real-time. The cost overhead of these payments will also continue to shrink. This trend will accelerate in 2020 as customer demand for frictionless, on-demand payments grows—enabling solutions like the Interledger Protocol (ILP) and distributed ledger technologies to gain traction and scale up.

Leveraging Emerging Technology for Competitive Advantage
More banks will use banking-as-a-service tech platforms to revolutionize their cost-to-serve and cost-to-change. As technology costs associated with running and development continue to climb, we can expect banks will turn to cloud providers of banking technology to help radically reduce these costs.

Because cloud-hosted banking technology providers have developed new platforms with modern methods, pioneers of cloud service providers are ideally positioned to easily and inexpensively integrate into emerging blockchain networks, Artificial Intelligence (AI) engines and other emerging fintech categories—meaning the competitive advantage of innovative banks over slower-moving rivals will be intensified.

The long-awaited tipping point from on-premise, traditional banking technology to agile, low-cost, cloud-hosted banking technology is getting closer. 2020 perhaps is the year?

Building Consumer Solutions
Additionally, 2020 will see new consumer purchase solutions emerge for tourists and travelers that don’t require cards or card rails. Imagine if a Japanese tourist visiting Thailand could buy goods using a mobile app or QR code, triggering an immediate cross-border payment from their Japanese yen account to a Thai baht merchant’s account. If more consumer purchase solutions start leveraging blockchain technology in the same way, the payoff will—quite literally—be huge!

The global economy will see continued growth of micro and wallet payments to support immediate, low-cost payment flows. The use case for micropayments has traditionally been confined to messaging ...

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