Key insights

• ⏰ Real-time payments (RTPs) are gaining popularity globally, impacting consumer payment preferences.
• 🤖 AI agents are likely to change commerce and introduce new challenges in sales, marketing, and product development.
• 🏛️ Payments are becoming more political, with governments leveraging payment systems for political agendas and geopolitical implications.
• 🌍 Governments use payment systems for foreign policy objectives, CBDC experiments and alternatives to Swift are being explored by many countries.
• ☁️ Accessibility of software was improved by the cloud, but fintech and embedded payments transformed business models, making smaller vertical SAS models viable.
• 🔐 Future of identity management online: verifying real identity, confirming ownership, ensuring sound decision-making.
• 💹 Cryptocurrency and blockchain transactions are becoming more accessible through platforms like Stripe.
• 💳 Buy now pay later (BNPL) methods are increasing revenue and driving sales, particularly among Gen Z.

Q&A

• What is the significance of integrating software and payments for businesses?

  The integration of software and payments is crucial for businesses, enabling them to offer tailored solutions, streamline transactions, and enhance consumer experiences, ultimately contributing to revenue growth and global market expansion.

• How are innovative payment methods like buy now pay later (BNPL) reshaping the payments industry?

  Innovative payment methods like buy now pay later (BNPL) are reshaping the payments industry by driving up conversions and average order values, especially among Gen Z, and are a key strategy for reaching and selling to younger demographics.

• What improvements have been made in the field of cryptocurrency?

  Cryptocurrency has made significant technical improvements, with faster transaction settlement times, lower costs, and stable coins becoming more regulated and widely used, contributing to the increasing adoption and integration of digital currencies in payment systems.

• What is the role of identity management in the future of payments?

  The future of payments involves evolving permissioning and identity tools to authenticate real identities, confirm ownership, and ensure sound decision-making, which will be crucial for enhancing security and trust in payment transactions.

• How is the future of payments being impacted by fintech, embedded payments, and AI?

  The future of payments is being transformed by fintech and embedded payments, similar to the way the cloud made software more accessible. Additionally, AI is poised to have a similar transformative impact by revolutionizing payment processes and business models.

• What efforts are being made to reduce payment costs?

  Efforts to reduce payment costs include a settlement between merchants and card networks, regulated fee reductions, and surcharging, all of which aim to lower transaction costs for businesses and consumers.

• In what ways are payments becoming more political?

  Payments are becoming more political, with governments leveraging payment systems for foreign policy objectives, exerting political pressure on financial service providers, and exploring alternatives to traditional payment networks like Swift, all of which have geopolitical implications.

• How is AI expected to impact commerce and payments?

  AI agents are likely to change commerce and introduce new challenges in sales, marketing, and product development by enabling personalized customer experiences, optimizing business processes, and potentially revolutionizing the payment industry.

• What are real-time payments (RTPs) and how are they impacting consumer preferences?

  Real-time payments (RTPs) are gaining popularity globally and impacting consumer payment preferences by offering immediate transaction processing, which is convenient and aligns with the need for instant gratification in the digital age.

• 00:03 The future of payments involves real-time payments, AI impact, and political considerations. Real-time payments are gaining popularity globally, impacting consumer preferences. AI agents are expected to change commerce, while payments are becoming increasingly political.
• 07:52 Governments are using payment systems to advance foreign policy objectives, with the exclusion of certain entities from networks, sovereign control, CBDC experiments, alternatives to Swift, political pressure on financial service providers, and efforts to reduce payment costs. A settlement between merchants and card networks aims to reduce payment costs in the US. Regulated fee reductions and surcharging are approaches to lower payment costs. Alex Rampel discusses the future of payments and the impact of AI.
• 15:24 The cloud made software accessible, but fintech and embedded payments revolutionized business models. AI is poised to do the same. Target's Red Card reduced payment processing costs and increased customer adoption. Permissioning and identity are evolving in the world of AI.
• 22:07 The future of identity management online involves verifying real identity, confirming the person's ownership of the identity, and ensuring the person is of sound mind to make decisions. Crypto has made significant technical improvements, with faster transaction settlement times, lower costs, and stable coins becoming more regulated and widely used. Stripe is reintroducing crypto payments with a better user experience and supporting stable coins for transactions.
• 29:09 The rise of innovative payment methods such as cryptocurrency and buy now pay later (BNPL) is reshaping the payments industry. BNPL methods are driving up conversions and average order values, especially among Gen Z, and are a key strategy for selling to younger demographics. Additionally, the shift towards vertical payments, where software companies like Mindbody are bundling payments and financial services, is transforming the payment landscape.
• 36:51 The integration of software and payments is crucial for businesses. Mindbody differentiated itself by offering broad consumer distribution through its app and class pass acquisition. Personalization in checkout experiences can significantly increase revenue. The future of payments and checkouts will be more personalized and global.