The Economist Intelligence Unit’s latest report, ‘Going digital: payments in the post-Covid world’, provides guidance on what companies can do to benefit from the digital payments boom, and how governments and regulators can nurture innovation in the sector.
Key findings from the report include:
- Governments in countries with a low level of digitalization and unsatisfactory financial inclusion must recognize that an enabling policy framework and public investment are keys to the successful widespread adoption of digital payment systems.
- Payment-platform providers must create additional capacity to prepare for greater demand for digital-payment services, as well as opportunities to migrate customers to financial services that yield higher margins. They must also prepare for the rising costs and complexities of compliance with regulatory requirements.
- Firms and service providers in adjacent areas must rapidly transform their businesses to benefit from these developments. Their strategies should include improving the interoperability of their digital platforms and deploying application programming interfaces (APIs) to allow the use of embedded payment systems.
- Regulators must adopt a proactive, multi-level approach to technological changes when formulating new standards, as well as closely monitoring any financial risks within payments systems.