The Global Payment Summit is aimed at easing the global exchange of new developments and lessons learned in the payments industry, worldwide. The Summit has been positioned in Asia, specifically in Singapore, because of the huge growth this region has shown, offering enormous opportunities for capitalizing on many lessons learned from leapfrogging countries in the Asian part, and from other countries worldwide. Mobile payments and online payments, Asian and African case-studies, regulatory trends, fraud, financial inclusion, and financial literacy agenda, were all brought together through a very diverse range of stakeholders, making the conversation during the Summit highly stimulating.
With a less mature financial infrastructure, Asia-Pacific is a great place for innovation. Advances in technology, the rapid growth of broadband internet, and mobile penetration, are all predicted to lead this region to become the driver of most future payment innovation. China is the second-largest economy in the world, and is a critical part of the payment discussion worldwide. But countries like the Philippines, Indonesia and Thailand are showing tremendous growth in areas such as online payments and mobile payments.
As developments and innovation in payments space are crucial for fostering economic growth, there is a significant need for new solutions in payments and, essentially, that this remains a collaborative model. Banks and payment providers should work together to achieve growth. Bringing together people from different parts of the payments industry to consider current and future opportunities for collaboration to increase online payments and to move cash out of the system to make it electronic, was a common goal of all those attending the summit, though it was certainly not the only one.
During the panels, we reflected on developments of the past 15 years, and considered that there certainly has been positive news in some areas like wholesale payments, high-value payments and security settlements, all of which are becoming increasingly sound. Fraud was also part of the discussions, with a key takeaway: behavioral analysis, as part of the payment processing strategy to deal with fraud will be fundamental for any merchant. It’s all about closing the feedback loop and ensuring you are constantly reviewing not only your chargeback levels, but also that you are not upsetting genuinely good and legitimate buyers at the same time.
Another important insight reiterated during the Global Payment Summit, as well as during other important payments conferences, such as CNP Expo or ETA (Electronic Transactions Association), is that doing cross-border e-commerce implies that we have to think globally, but act locally. Growing up with a certain mindset, whether Asian or European, it’s not always easy to understand how the industry works in a local country. So we need to consider what kind of value a chain has and how to extend it, considering the uncontrolled innovations in the payment space, the collaborative model, and more.