Enhanced Virtual Payment Systems

The UK is transforming its payments system with the New Payments Architecture (NPA), a bold initiative designed to simplify and modernize how money moves between banks. But what does this mean for you, whether you’re a business owner, a consumer, or just someone who transfers money to friends? Let’s break it down with real-life scenarios. Imagine the current payment system as multiple roads leading to the same destination—each with its own rules, speed limits, and tolls. Systems like BACS, Faster Payments, and Cheque Clearing operate separately, creating inefficiencies. The NPA brings all these systems together under one highway: a unified platform built on ISO 20022 standards. This means faster, safer, and more flexible transactions for everyone. Here are some examples of how NPA will make life easier: 1. For Businesses: • Scenario: You’re a small business owner paying salaries via BACS. Currently, it takes up to three days for payments to process. • With NPA: Payments will settle in real-time, ensuring your employees get paid instantly. 2. For Consumers: • Scenario: You’re splitting the bill at dinner and transferring money to a friend using Faster Payments. • With NPA: The transaction will be faster and more secure, with enhanced fraud protection. 3. For Banks and Fintechs: • Scenario: A new fintech wants to offer innovative payment services but faces high entry barriers due to outdated systems. • With NPA: Lower barriers will encourage competition and innovation, benefiting consumers with better services. The key benefits include: • Real-Time Payments: Say goodbye to delays; transactions will happen instantly. • Enhanced Security: Improved fraud prevention protects your money. • Better Data Insights: ISO 20022 enables richer data exchange for tracking payments. • Innovation and Competition: New players like fintechs will bring fresh ideas to the market. With increasing digitization, stricter regulations, and rising fraud risks, the old systems can no longer keep up. The NPA ensures resilience and adaptability in an ever-changing financial landscape. Whether you’re paying bills, running a business, or developing fintech solutions, the New Payments Architecture promises faster, safer, and smarter transactions for everyone in the UK.

Apple’s move to open its contactless payments technology on iPhones to third-party developers will certainly shakeup the payments landscape. As new payment solutions emerge, we’ll likely see increased competition and elevated consumer expectations. There's a distinct opportunity for banks to be at the forefront of this advancement. What might access to Apple’s NFC chip mean for banks? 💵 Expanded Payment Options: Banks may integrate more deeply with Apple’s technology, enhancing in-app payment capabilities and offering new features for a more seamless transaction experience. 🔐 Enhanced Security: Apple’s technology could improve security with features like biometric authentication and tokenization, making transactions more secure. 💳 Broader Compatibility: Virtual debit cards may become usable in a wider range of third-party apps, increasing flexibility and convenience. 📱Consistent Experience: In-app payments and banking services might become more streamlined and consistent with Apple Wallet, reducing friction. Banks focused on owning the payments experience will be well-positioned. Adapting to increased regulatory scrutiny and maintaining robust security will also be crucial. This evolving landscape underlines the importance of agility, innovation, and a commitment to delivering a leading payments experience to clients. #Payments #PaymentsTechnology #Banking #Banks #Apple #AppleWallet #iPhone https://lnkd.in/ehpeA4GB

𝐇𝐨𝐰 𝐀𝐈 𝐦𝐢𝐭𝐢𝐠𝐚𝐭𝐞𝐬 𝐟𝐫𝐚𝐮𝐝 𝐢𝐧 𝐀𝐜𝐜𝐨𝐮𝐧𝐭-𝐭𝐨-𝐀𝐜𝐜𝐨𝐮𝐧𝐭 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 by Visa👇 — 𝐓𝐡𝐞 𝐏𝐫𝐨𝐛𝐥𝐞𝐦 𝐢𝐧 𝐀2𝐀 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬: ► Account-to-Account (A2A) payments are rapidly growing, with a forecasted 161% growth between 2024 and 2028. ► The fundamental characteristics of Real-Time Payments (RTP), such as speed, 24/7 availability, irrevocability, and lack of network visibility, contribute to the increasing fraud risks. ► Fraud is evolving with the growth of A2A payments, making it crucial for financial institutions to implement real-time fraud prevention strategies. — 𝐖𝐡𝐲 𝐢𝐬 𝐀𝐈 𝐂𝐫𝐢𝐭𝐢𝐜𝐚𝐥𝐥𝐲 𝐈𝐦𝐩𝐨𝐫𝐭𝐚𝐧𝐭 𝐢𝐧 𝐅𝐫𝐚𝐮𝐝 𝐏𝐫𝐞𝐯𝐞𝐧𝐭𝐢𝐨𝐧? ► 𝐒𝐩𝐞𝐞𝐝 𝐚𝐧𝐝 𝐀𝐜𝐜𝐮𝐫𝐚𝐜𝐲: AI enables real-time fraud detection and prevention, essential for instant payment transactions that are completed within 10 seconds. ► 𝐏𝐚𝐭𝐭𝐞𝐫𝐧 𝐑𝐞𝐜𝐨𝐠𝐧𝐢𝐭𝐢𝐨𝐧: AI can recognize patterns and detect irregularities, linked to mule accounts or changed geolocation. ► 𝐀𝐝𝐚𝐩𝐭𝐢𝐯𝐞 𝐋𝐞𝐚𝐫𝐧𝐢𝐧𝐠: AI models adjust to new fraud trends in real-time, unlike traditional rules-based systems that require post-loss analysis. ► 𝐑𝐞𝐝𝐮𝐜𝐞𝐝 𝐅𝐚𝐥𝐬𝐞 𝐏𝐨𝐬𝐢𝐭𝐢𝐯𝐞𝐬: AI-enhanced systems provide more accurate fraud detection, reducing the need for manual reviews and minimizing false positives. ► 𝐍𝐞𝐭𝐰𝐨𝐫𝐤-𝐋𝐞𝐯𝐞𝐥 𝐕𝐢𝐬𝐢𝐛𝐢𝐥𝐢𝐭𝐲: AI leverages a multi-financial institution (FI) view, enabling a comprehensive view of fraud across payment networks, which is crucial for detecting cross-network fraud schemes. — 𝐑𝐮𝐥𝐞𝐬-𝐁𝐚𝐬𝐞𝐝 vs. 𝐀𝐈-𝐄𝐧𝐡𝐚𝐧𝐜𝐞𝐝 𝐒𝐲𝐬𝐭𝐞𝐦𝐬: 𝐑𝐮𝐥𝐞𝐬-𝐁𝐚𝐬𝐞𝐝 𝐒𝐲𝐬𝐭𝐞𝐦: 1️⃣ Transaction Initiated 2️⃣ Massive Volume of Transactions: High volume of transactions are flagged for manual review due to basic rule triggers. 3️⃣ Manual Review: Transactions are manually reviewed, leading to delays and operational inefficiencies. 4️⃣ Transaction Assessed: Risk is evaluated based on pre-set rules. 5️⃣ Transaction Authorized: If no rule is violated, the payment is authorized. 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬: High false positives, time-consuming manual reviews, and delays in payment processing. 🆚 𝐀𝐈-𝐄𝐧𝐡𝐚𝐧𝐜𝐞𝐝 𝐒𝐲𝐬𝐭𝐞𝐦: 1️⃣ Transaction Initiated 2️⃣ Curated Volume of Transactions: AI intelligently filters transactions, reducing the volume that requires review. 3️⃣ AI-Assisted Review: Transactions are reviewed with AI input, providing real-time risk assessment. 4️⃣ Data & Model Assessment: AI evaluates transactions using data patterns and predictive models. 5️⃣ Transaction Authorized: If deemed low-risk, the payment is instantly authorized. 𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬: Reduced false positives, real-time risk assessment, operational efficiency, and improved customer experience. — Source: Visa — ► Sign up to 𝐓𝐡𝐞 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐁𝐫𝐞𝐰𝐬 ☕: https://lnkd.in/g5cDhnjC ► Connecting the dots in payments... and Marcel van Oost

Digital payments have become the norm for conducting financial transactions in today's fast-paced world. From online shopping to peer-to-peer transfers, the convenience and speed of digital payments have transformed how we handle our finances. Behind the scenes, #ai plays a significant role in ensuring these digital payment systems' efficiency, security, and seamless experience. 3 key areas we see the use of #AI in digital payments and its impact on the financial landscape. 1.Enhancing Fraud Detection One of the critical areas where conventional AI shines in digital payments is fraud detection. Machine learning algorithms analyze vast amounts of transactional data to identify patterns and anomalies that may indicate fraudulent activities. By continuously learning from historical data, AI systems can adapt to evolving fraud techniques and provide real-time alerts when suspicious transactions are detected. Solutions like Brighterion, a Mastercard Company can analyze multiple factors, including transaction amounts, geographic locations, and user behaviour, to assess the risk associated with a particular payment. Consequently, they help minimize fraudulent activities, protecting both consumers and businesses. 2.Improving Personalized Customer Experiences Conventional AI enables digital payment platforms to deliver highly personalized customer experiences. #AI algorithms can offer tailored recommendations and promotions by analyzing user data such as spending habits, preferences, and demographics. For instance, a digital payment app can suggest relevant offers or discounts based on a user's purchase history. AI-powered chatbots and virtual assistants enhance customer experiences by providing instant support and resolving transactions, refunds, or account management queries. Through these personalized interactions, AI fosters customer loyalty and engagement. 3.Streamlining Payment Processes AI-powered algorithms streamline payment processes, making them faster and more efficient. #AI can automate routine tasks such as payment reconciliations, invoice processing, and account settlements. By eliminating manual intervention and reducing the likelihood of errors, businesses can significantly improve operational efficiency and reduce costs. #AI has become an indispensable tool in the realm of digital payments. Its ability to detect fraud, personalize customer experiences, streamline payment processes, and ensure security has transformed the way we transact online. As AI continues to evolve and integrate with other cutting-edge technologies, we can expect digital payments to become even more #secure, #efficient, and #tailored to individual needs. With its continued advancements #AI is set to shape the future of the financial landscape, empowering individuals and businesses in the realm of digital payments..

💡 𝐁𝐞𝐲𝐨𝐧𝐝 𝐓𝐫𝐚𝐝𝐢𝐭𝐢𝐨𝐧𝐚𝐥 𝐁𝐚𝐧𝐤𝐢𝐧𝐠: 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐖𝐚𝐥𝐥𝐞𝐭𝐬 𝐚𝐧𝐝 𝐂𝐨𝐫𝐞 𝐓𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐢𝐞𝐬 𝐑𝐞𝐝𝐞𝐟𝐢𝐧𝐢𝐧𝐠 𝐅𝐢𝐧𝐚𝐧𝐜𝐞 by Tuum The latest whitepaper, developed in collaboration with KPMG and Mia-FinTech, provides an in-depth exploration of how digital wallets and advanced core banking technologies are redefining the financial industry. This resource is essential for financial institutions aiming to modernize their payment systems and stay competitive in a digital-first world. 𝕂𝕖𝕪 𝕋𝕒𝕜𝕖𝕒𝕨𝕒𝕪𝕤 1️⃣ 𝐓𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐢𝐜𝐚𝐥 𝐀𝐝𝐯𝐚𝐧𝐜𝐞𝐦𝐞𝐧𝐭 & 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐒𝐡𝐢𝐟𝐭𝐬: Emphasis on the necessity of modern core banking solutions to keep up with the changing regulatory landscape, including PSD3 and Instant Payments. 2️⃣ 𝐈𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐀𝐝𝐯𝐚𝐧𝐜𝐞𝐝 𝐂𝐨𝐫𝐞 𝐁𝐚𝐧𝐤𝐢𝐧𝐠 𝐚𝐧𝐝 𝐎𝐫𝐜𝐡𝐞𝐬𝐭𝐫𝐚𝐭𝐢𝐨𝐧 𝐂𝐚𝐩𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬: How integrating Tuum’s advanced core banking platforms with Mia-FinTech’s orchestration capabilities transforms payment functions for both traditional and digital currencies. 3️⃣ 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐋𝐚𝐧𝐝𝐬𝐜𝐚𝐩𝐞: Key regulatory changes such as PSD3, ISO20022, and the push for instant euro payments, highlighting the importance of compliance and the timeline for enforcement. 4️⃣ 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐖𝐚𝐥𝐥𝐞𝐭 𝐔𝐬𝐞 𝐂𝐚𝐬𝐞𝐬: Examples of how different industries, including utilities and insurance companies, can leverage digital wallets to enhance customer interaction and streamline operations. 5️⃣ 𝐏𝐥𝐚𝐭𝐟𝐨𝐫𝐦 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲: The importance of adopting a platform strategy to bridge the gap between legacy systems and digital experiences, ensuring faster time-to-market and enhanced customer satisfaction. 6️⃣ 𝐂𝐨𝐫𝐞 𝐁𝐚𝐧𝐤𝐢𝐧𝐠 𝐌𝐨𝐝𝐞𝐫𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧: Benefits of modern core banking platforms, including flexibility, scalability, and the ability to support new business models like Open Finance. 🔗 Source: https://lnkd.in/e-M4m9yR

Exciting #CBDC developments and financial markets digitalization Official Link: Enhancing domestic payments with wCBDC - OMFIF I had a chance to review an interesting report called “Enhancing domestic payments with wholesale CBDC” by Digital Monetary Institute. The report reveals the steps taken by central banks towards understanding whether digital currencies can transform payment systems and improve wholesale settlements. One notable insight from the report is that experts in this area of the industry are moving towards a consensus on tokenization as one important catalyst to financial system innovation. A survey conducted during an OMFIF-Visa panel even showed that 50% of the audience members claimed tokenization as the top innovation driver. The report shows the partnership between central banks and the Bank for International Settlements Innovation Hub in exploration as well as experiment CBDC. These projects aim to address some of the most pressing challenges, including credit and settlement risk, scalability and interoperability. The variety of opinions regarding the need for CBDCs is undoubted but the panelists agreed that wholesale CBDC development will be an evolutionary process rather than a sudden revolution. As custodians of financial stability, central banks understand the importance of a gradual and cautious approach to ensure resilience that prevents risks from emerging or growing bigger. The talks also stressed scalability and improved interoperability of payment systems. #Payment service providers, such as Visa continue to make ongoing attempts towards setting up interconnecting networks and practicing financial integration that helps in creating more unified global economies. Panelists in the report also talk about the tokenization benefits of #DLT and #blockchain, which granted improved operational efficiency. The availability of the opportunity depicts ownership rights to financial assets on the blockchain creating new possibilities for programmability and innovative applications. In the end, this report offers a unique perspective on retail CBDC progress and obstacles as well as the tokenization of financial markets. Both central banks and industry stakeholders are actively integrating these technologies to use in payment systems for better efficiency, effectiveness as well as financial stability. However, I strongly encourage readers to investigate the entire report because it gives a thorough overview of how wholesale CBDCs and tokenization impact today’s landscape in the financial industry. MEHDI SARDAOUI Zvonimir Filjak Arjun Vir Singh David Jimenez Maireles Igor Babych Maximilian Salomon Saleh ALhammad #cbdcs #digitalcurrencies #tokenisation #financialinnovation #paymentsystems #dlt #blockchain #financialmarkets #financialstability #OMFIF #digitalmonetaryinstitute

The future of payment systems is here. Payment processing is changing fast. Banks must adapt to stay relevant. Here’s how they can modernize: 1. Payment Processing at the Core: Banks used to manage payments in their core systems. This made sense since transactions come from customer accounts. Advantages: - Direct access to customer accounts. - Seamless integration with banking functions. Challenges: - Regulatory changes make updates costly. - Migrating to new systems is complex. - Legacy systems hold banks back. Many banks struggle with outdated core systems. According to Accenture, 68 percent say this is a major barrier to innovation. 2. The Gateway Connector as a Payment Processor: As demand grew, banks turned to external gateways. These connectors handle payments, easing the load on core systems. Advantages: - Less reliance on core systems. - Faster updates to payment standards. Challenges: - Multiple connectors needed for different networks. - Increased integration complexity. - Higher fraud risks. Many banks use systems like SWIFT and SEPA. Each requires separate integration, raising costs and complexity. 3. The Payment Hub: A Centralized Solution: To solve these issues, banks are adopting payment hubs. This middleware manages payments across channels. Benefits of a Payment Hub: - Centralized processing for various payment types. - Improved scalability for growing volumes. - Reduced regulatory exposure. JP Morgan's global payment hub cut processing times by 30 percent and improved fraud detection. 4. The Future: Smart, Agile Payment Systems: Payment architecture is evolving to be modular, API-driven, and AI-powered. Key Trends Shaping the Future: - Real-time payments are rising, with a 20 percent annual increase. - Cloud processing cuts costs by 25 to 40 percent. - AI enhances fraud detection and payment orchestration. Conclusion: Modernizing Payment Infrastructure is Critical Banks must shift from old models to flexible, API-first architectures. By using payment hubs and smart routing, they can boost efficiency, scalability, and compliance.

FinTalks: The payment landscape has changed significantly in recent years. Tap-to-pay technology is now standard, banks are exploring blockchain, and generative AI is helping to improve fraud protection rates by up to 300%. Mastercard has announced that by 2030, shoppers will not need to enter a physical card number or password for online transactions. Here are ten key trends that may shape payments by 2025: 📍 Fighting AI Fraud with AI - Cybercriminals use generative AI for scams. Mastercard’s Decision Intelligence Pro reviews 1 trillion data points in milliseconds to check if transactions are genuine, improving fraud protection rates significantly. 📍 Empowering Small Businesses - Small businesses that quickly adopted digital payments and e-commerce during the pandemic have succeeded. Now, they can access platforms tailored to their needs, helping them automate tasks and create effective marketing plans based on data insights. 📍 Improving Digital Inclusion - Digital wallets are becoming essential banking tools in developing nations, offering convenience to many without bank accounts. Mastercard’s Pay Local allows users to connect their credit or debit cards to local digital wallets, making shopping easier without needing prepaid setups. 📍 Digital Identity Access - A secure digital identity is vital for safe online interactions. Advances in biometrics and machine learning are promoting passwordless authentication and enhancing user security and privacy. 📍 Simplifying B2B Payments - Business payments are evolving as companies see the benefits of virtual cards. These cards help with automated record-keeping and provide real-time financial information, opening new opportunities for small businesses. 📍 Enhancing Checkout Experiences - Contactless payments are now widely used. Solutions like Tap on Phone allow businesses to accept payments easily, simplifying the process and improving customer satisfaction. 📍 Real-Time Payments Are Growing - Real-time payment systems are available in over 100 countries. This development is making transactions faster and easier. As these systems connect internationally, cross-border payments will become more seamless. 📍 Building Collaborative Ecosystems - In today’s interconnected world, partnerships across different sectors are required. Collaboration between banks, tech companies, and governments is driving significant improvements in financial services. 📍 Harnessing Blockchain Technology - Blockchain is a powerful tool in global finance. Cryptocurrencies and digital assets are becoming easier to use in real-world transactions, and the future looks promising for using blockchain in business payments. 📍 Expanding the Token Economy - Mastercard aims to eliminate manual card entry through tokenization. This approach offers opportunities beyond standard payments, improving data privacy and optimizing various economic activities. #fintalks #mastercard #payments #trends #fintech

𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐚𝐧𝐝 𝐛𝐚𝐧𝐤𝐢𝐧𝐠 𝐟𝐨𝐫 𝐒𝐌𝐁𝐬: 𝐓𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐢𝐧𝐠 𝐡𝐨𝐰 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬 𝐩𝐚𝐲 𝐚𝐧𝐝 𝐠𝐞𝐭 𝐩𝐚𝐢𝐝 via Visa Consulting & Analytics (VCA) 💼 The landscape of payments and banking for small to medium-sized businesses (SMBs) is undergoing a remarkable transformation. The latest insights from Visa Consulting & Analytics reveal the opportunities and challenges in this dynamic environment. 🗝️ Key Insights: ➊ Vast Market Potential ↳ The global B2B commercial payments market represents a $145T opportunity. SMBs are at the forefront, demanding faster, cheaper, and more efficient payment solutions. ➋ Rise of Real-Time Payments ↳ Real-time payments (RTPs) are revolutionizing transactions, with a projected rise to nearly one-third of all electronic payments by 2028. In the US, RTPs already account for nearly half of B2B purchasing spend. ➌ Technological Adoption ↳ SMBs are embracing technologies like QR codes and contactless payments, with innovations like Tap to Phone making transactions simpler and more accessible. ➍ Embedded Finance Boom ↳ Embedded finance is set to triple by 2026, offering SMBs integrated financial services within platforms they already use, streamlining their financial operations. ➎ Card-Based Innovation ↳ Virtual cards are gaining traction, expected to grow fourfold to $13.8T by 2028, driven by enhanced security, user experience, and real-time analytics. ______________ 📈 The demand for integrated, seamless, and efficient payment solutions is on the rise. There’s a significant opportunity to innovate and capture market share by offering tailored solutions that meet the specific needs of SMBs. Leveraging these innovations can enhance payment processes, reduce costs, and improve customer satisfaction. Download the full report to dive deeper into these insights and prepare your business for the future of payments here ➡️: https://lnkd.in/guvX6--6 #fintech #payments #realtimepayments #embeddedfinance #SMBs

🌐 Exploring the Future of Payments: Key Global Trends in 2024 🌐 The global payments landscape is undergoing a dynamic transformation, driven by technological advancements, new digital business models, and evolving payments infrastructure. 📈 Key takeaways from HSBC’s 2024 Global Payment Trends report reveal pivotal shifts: 📲 Real-Time Payments and Digital Wallets: As consumers and businesses alike seek convenience, digital wallets and account-to-account (A2A) payments are expanding rapidly, particularly across Asia-Pacific. These innovations provide seamless, instant payment options tailored to modern demands. 💳 B2B Virtual Cards: Virtual cards are revolutionizing B2B payments, streamlining processes and enhancing fraud prevention. By 2028, virtual card usage is projected to grow over 250% in the B2B sphere! 🌍 Cross-Border Payment Optimization: As global commerce accelerates, there’s a pressing need for secure, efficient cross-border payment solutions that enhance transparency and efficiency in international transactions. 🔍 ISO 20022 Migration: The adoption of this global standard is enhancing cross-border interoperability and automation. This evolution in data quality and transaction visibility is set to benefit treasury teams globally. 🌐 The Next Frontier in Real-Time Cross-Border Payments: With regional collaborations underway, real-time payments across borders are closer than ever, promising to reshape P2P and B2B transactions globally. #Payments #DigitalTransformation #RealTimePayments #GlobalCommerce #CrossBorderPayments #TreasuryManagement #Innovation