• Wednesday, June 12, 2024
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Interswitch, World Bank collaborate on global payment innovation report

Interswitch, World Bank collaborate on global payment innovation report

Interswitch Group has formally unveiled the 2022 Payments Innovation Jury Report, which was also supported by the World Bank and Global Processing Services (GPS).

The report titled: “Payment Innovation: Myths and Realities”, comes as part of the series which reveals some surprising insights from senior decision makers across the industry, and the 2022 report, which coincides with Interswitch’s 20th-anniversary commemoration, explores several key areas where payment innovation is currently focused.

These include A2A payments and BNPL, what actually drives innovation, and which areas of innovation are most overhyped, amongst other incisive global payment themes.

The 2022 Payments Innovation Jury, whose expert insights and perspectives essentially drove the report, was made up of 79 senior payments leaders across 30 different markets to give a full, 360- degree picture, a significant number of senior regulators and investors were recruited to the Jury for the first time since its inception, alongside national payments companies, banks, fintechs, and payments policy bodies. Importantly, all Jury members participate on an anonymous basis to allow them to speak freely, unencumbered by the innovation priorities of their current organisation. The 2022 report is the tenth in a series spanning 14 years.

According to Mitchell Elegbe, founder/group chief executive officer at Interswitch, “As one of the leading and influential players in payments who regard Africa as both our origin and primary catchment market, we are extremely enthused at Interswitch to yet again facilitate this timely and important research effort, which curates practical insights and expert perspectives of senior leaders globally, and across the entire spectrum of African retail payments.

Read also: Four themes to shape Africa’s digital payments in 2022

It is worth mentioning that this edition coincides with the 20th anniversary of Interswitch’s inception, and I am thoroughly delighted that at such a significant milestone in our journey as a front-row contributor to payment innovation in Africa, we once again have the privilege of supporting this worthy initiative that is facilitating balanced appraisal and better understanding of the payments industry as it continues to evolve”.

John Chaplin, founder/chairman of the Payments Innovation Jury and board director at Interswitch opines that “In the payments industry there have long been competing ideas on what will be the ‘Next Big Thing’, particularly as many good ideas fail to achieve the scale to operate economically. As such, what is surprising about the 2022 Payments Innovation Jury is the level of consensus achieved in almost all areas, from the future of BNPL to the end user benefits of CBDCs.

“It has been incredibly rewarding to gather the insights of 79 of the most senior players shaping the global payments industry. My grateful thanks to them for taking the time to share their views, which have been curated in this report. The support of Interswitch, the World Bank, and Global Processing Services is much appreciated, as their patronage allows us to operate on a not-for-profit basis and distribute the report free of charge to anyone with an interest in the future of innovation in the payments industry.”

Some of the report’s key findings include: Market share of account-to-account (A2A) transactions is expected to increase steadily over the next five years, but the lack of a sustainable income stream for participants calls elements of the A2A business case into question.

Although the dominance of the card model in developed countries will be hard to shake, volume growth in card payments will be harder to achieve as alternative payment methods such as A2A grow their market share.