Closed-loop payment systems top the wish list of payment professionals for alternative payment products, followed closely by point-of-sale account-to-account payments, according to research from the watchdog agency Vixio regulatory.
The 2022 Payments Compliance Outlook report is based on research conducted at the end of last year among 113 compliance professionals (56 in the UK, 57 in the US) who work in financial technology and payout with over $10 million in revenue. It revealed that 52% plan to launch a closed-loop payment product in 2022 and 61% will develop one by the end of 2023.
It also found that 45% plan to launch an A2A product for POS payments in 2022 and 53% will launch one by 2023.
Additionally, a significant number plan to launch e-wallets and digital currencies, with 41% of financial services and payment functions planning to focus on these products over the next two years.
The demand for alternative payment solutions comes at a time when traditional card payments are coming under increasing scrutiny from regulators. The rise of open banking arrangements, supported by payments modernization initiatives such as the proposed new payment architecture in the UK or the new instant payment service FedNow due to launch in 2023, is driving the trend.
Andrew Neeson, Research Director at Vixio, said: “Brands need to innovate and seek growth opportunities in the face of a rapidly changing regulatory landscape, and alternative payment solutions can play an important role in this. Businesses are aware of the benefits of providing faster, efficient and frictionless user experiences that many alternative payment methods offer, and so are understandably keen to include them in their arsenal.
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