The positive trend has however faltered since the beginning of 2010, as a result of increased regulatory and security pressures (EMD, PSD1 and 2, regulation of interchange fees, PCI-DSS, etc.), opening up to competition, and the acceleration of innovation driven by the smartphone boom. All of these factors have helped to make the payments value chain a new playing field which, one link at a time, is changing profoundly and attracting new players that are challenging this once highly profitable business model for banks.
Having already withdrawn from the business of the acquisition of e-money flows in some countries, and being disintermediated by payent service providers (PSPs) in the acceptance of e-commerce flows, banks will now have to contend with the advent of account aggregators authorized by PSD2 to originate payments.
Lastly, pressure from the ECB to develop real-time transfers in Europe will trigger the emergence of a new generation of payments truly in sync with tomorrow’s digital world, a digital world strongly linked to the extension and growing industrialisation of the risk of fraud.
At Exton we believe in bold payment strategies, which challenge the paradigm of the status quo on the map, which leverage real-time technologies and the use of data, and flip European regulations to their advantage. We want a strong Europe of payments and our clients to be its champions.