Payment integration is a powerful way to improve the user experience on any software platform by offering benefits that extend far beyond simple transaction processing. However, many business owners may hesitate to hand over such a critical function to an outside party.

During a PaymentsJournal podcast, Jessica Tate, manager of customer success at CSG Forte, Nathan Miller, president and founder of Rentec Direct, and Don Apgar, director of merchant payments at Javelin Strategy & Research, discussed the benefits of integrating payments, the remarkable growth it can drive, and the future of payments integration in the software industry.

One-Stop Shop

One of the central benefits of payment integration is its ability to keep users engaged on the platform. However, users also have high expectations for the payment experience, including access to diverse payment options and secure transactions. Meeting these demands can be a heavy lift, which is why many software companies partner with dedicated payment providers.

“It’s a one-stop shop, which improves the user experience,” Tate said. “Merchants can offer multiple payment options like ACH, credit cards or debit cards, which accommodates diverse customer preferences. There are also increased revenue opportunities. Some payment partners offer revenue-sharing models, while others will bill the merchant directly. Or we can bill a partner and the partner will, in turn, bill their merchants.”

Integrating payments also opens opportunities for upselling and cross selling by leveraging insights from payment data to identify new products or services to offer. As an added benefit, many payment processors can leverage their connections to a larger framework of financial institutions and processors.

Most payment partners offer advanced fraud detection and prevention tools alongside their payment integration solutions. They also offer data encryption and compliance tools to ensure secure handling of sensitive payment data, which helps maintain trust with end users.

“For a software company like us, we want to focus on what we do well,” Miller said. “We write software for property managers and landlords, and our job is to streamline their day and make their life and their processes easier. Payment processing is a whole different beast, and we wouldn’t want to recreate that when it’s already been created by others. It makes a whole lot more sense for us to integrate into an existing solution.”

A Growth Driver

Better payment processing improves the user experience, and is also a powerful growth driver for organizations. Faster transactions improve cash flow, allowing companies to reinvest in operations more quickly. Reducing payment failures also ensures consistent revenue.

“A lot of software companies are realizing that payments are not only integral to the functionality of the software, but a good revenue driver as well,” Apgar said. “Our research found that less than half of merchants now source their payment acceptance or merchant account from their bank versus their technology provider, which really speaks to the fact that payments align better with the technology workflow than with a bank.”

Turning to a dedicated payment partner can help software platforms implement a recurring payments model for steady and predictable income streams from subscriptions. Organizations will also be able to streamline their operations because all services and functionalities are available on a single platform.

“It reduces the need to switch between different systems or interfaces for the customer, and in tandem with that comes increased time efficiency,” Tate said. “Payments platforms can provide real-time data sharing across departments or teams, which enhances collaboration. Software companies can also leverage integrated data to offer tailored recommendations or services to their customers, which enhances the user experience by customizing it.”

A Double-Pronged Challenge

In the case of property managers, the ability to accept online payments is customers’ most requested feature. Adding payment support can not only bring in new customers, it can also help existing customers add more services.

“Payments is probably the number one reason for a software like ours to grow,” Miller said. “In fact, just in the last four years, we doubled the percentage of online payments that we were taking, while simultaneously adding about 1,200 customers a year. That’s a huge growth percentage that’s based around online payments.”

One of the major challenges in the property management space is that renters come from all backgrounds and span a wide range of ages, and some demographics are more familiar with (and comfortable using) payments technology than others. This means the platform must be simple enough for all users to make or schedule a rent payment in just a few clicks.

Simplifying billing related to merchant accounts presents another challenge, because these accounts are often highly complex. The right payments platform can ensure that property managers only see the charges they need to see on their bill.

“There are two layers of the customer experience in the software space,” Apgar said. “There are the merchants, in this case the landlords, who are looking for better reconciliation, automated posting and the business tools to manage payments better. At the same time, the end user is looking for an easier, low-friction way to pay. The software company has a double-pronged challenge to make it easier for both the merchant, [who’s] their direct customer, and for the end user.”

An Instant Payments World

The ease of use for all customers is one of the reasons that payments will continue to be integrated into the software landscape across all verticals. However, new challenges will arise as emerging new payments technologies, especially faster and instant payments, are connected to software offerings.

“Our customers love the idea of instant payments,” Miller said. “They want a tenant to make a payment and for it to land in their bank account three seconds later. On the flip side, when they pay their owner, they want to be able to run the report, email the report to the owner and the owner to be able to check their bank balance and it’s there. The dream of an instant payments world is always there.”

Unfortunately, with faster payments comes higher potential for fraud. When there is a one- or two-day hold, all parties have a chance to evaluate the transaction. That safety net isn’t there with instant payments, so it is important that the software companies and payments providers that are moving toward instant payments acceptance understand the risks.

Aligning With Payments

The risks associated with payments processing are one of the main reasons why many software companies are turning to payments platforms. In addition to fraud concerns, platforms must also be aware of the Payment Card Industry (PCI) standards and any local regulations.

The goal is to find a partner that can mitigate all these risks while facilitating the best user experience. The partner should be equipped to support the platform’s current payments volume, but also able to scale as the company grows.

“My biggest advice would be to understand your business needs and your user needs,” Tate said. “How do payments align with your product? Are you facilitating rent payments, subscriptions, one-time purchases or marketplace transactions? All these things shape your payment integration strategy and help you create a seamless, intuitive payment experience.”

The post How Integrating Payments Enhances User Engagement, Drives Revenue appeared first on PaymentsJournal.

The United States employs multiple real-time payment schemes; however, unlike those in many emerging markets, these methods are not driven by a central government or central bank. In the absence of a centralized entity to organize payment processes, other stakeholders must take the lead in enabling instant, cross-border transactions.

In a recent PaymentsJournal podcast, Alex Johnson, Chief Payments Officer at Nium and Albert Bodine, Director of Commercial and Enterprise Payments at Javelin Strategy & Research, discussed the latest efforts aimed at integrating the U.S. into the realm of international real-time payments.

The U.S Plays Catch-Up

In many ways, the U.S. economic landscape lags behind some emerging economies in payments innovation. This is partly because emerging markets have faced more pressing challenges, driving them to harness technological advancements to help solve specific, regionally unique use cases.

“Compared to networks like UPI in India and Pix in Brazil, our level of maturity and sophistication in the United States is not quite there yet,” Bodine said. “As most people know, RTP and FedNow are not even interoperable now.”

But, it’s time for the U.S. to catch up. One of the key drivers of payments innovation in the U.S. is the global supply chain. Even small and medium-sized businesses are starting to source goods and services from regions like India. In India, real-time payments are the most widely used payment method for both citizens and businesses. Extending the supply chain to India therefore requires developing systems that can facilitate real-time payments effectively in that market.

A significant advantage of real-time payments is their efficiency. They always provide complete visibility into the payment’s status, letting buyers optimize their working capital for a longer period. However, sellers may prefer traditional payment methods, as they often receive their funds slightly earlier.

“CFOs don’t want to see money go out of their account in 20 seconds,” said Bodine. “We have to look at the strategic coexistence of all the pay types and not assume that any one is going to be applicable to all situations.”

Fraud Concerns

With the rise of real-time payments, there has been an increase in account-to-account fraud for those sending payments. But, real-time payments are not inherently riskier than traditional methods. Since the money moves instantly, there is never any question about its status at any point in time.

Account verification plays a big role in boosting confidence in the global adoption of real-time payments. For example, if someone is completing a transaction to Nigeria or Thailand, it’s now possible to verify the ownership of the receiving account.

“You can put in an account number and name, ping our API, and within seconds you get a response to say, ‘Yep, that matches’ or ‘No, it doesn’t,’” said Johnson. “In some jurisdictions, we can also pass back the actual name on the account. You can be absolutely certain that the money’s going to exactly who you think it’s going to, separate from and prior to a transaction. That’s a huge prevention of fraud, giving people more comfort in using real time payments. We’ve seen a 58% reduction in return transactions just by the use of this tool.”

A Partnering Plan

The global cross-border payments network is led by Swift, run by a consortium of international banks. What many may not realize is that a Swift transaction is not the payment itself, but rather the messaging service.

Swift acts as a tool that creates interoperability between different payment systems. Most financial institutions have already completed the integration with Swift, allowing them to use its functionality to send wires globally.

“At Nium, we can now accept transactions via Swift messages from financial institutions,” said Johnson. “They can make Nium an intermediary on those transactions, and we can route those payments into mostly real time. About 85% of the transactions we handle are delivered within 15 minutes or less.”

Because the differing global payment systems don’t speak to each other, a third-party like Nium is needed to bridge these connections. With the connections that have been made, these third parties are now beginning to create locally interoperable systems.

“Fortune 1,000 companies absolutely need to partner in these situations,” said Bodine. “They simply don’t have the resources or funding to support and maintain legacy systems while they’re branching out of these areas. Partnering with organizations like Nium is incredibly important.”

The Promise of ISO 20022

Despite the challenges of implementing it as a new messaging standard, ISO 20022 has been a boon to the world of instant payments.

“If we could get every scheme, SWIFT and otherwise, to ISO 20022, then interoperability becomes so easy,” said Johnson. “But a lot of the local schemes aren’t there yet. Once everyone is talking the same language, the translation between a SWIFT message to whatever that local scheme is becomes a lot easier.

“Interoperability will be a theme that we’ll continue to ride on in the next few years as we explore what that looks like,” she said. “There’s so much experimentation happening right now that I really look forward to seeing in the next couple years how this evolves.”

Bodine added: “We can communicate pretty much with every human being on earth. There is absolutely no reason we shouldn’t be able to transact funds between every human being and every business on Earth.”

The post The Power of Real-Time Payments on a Global Scale appeared first on PaymentsJournal.

The most familiar example of surcharging might be the cash-or-credit pricing at gas stations, but more businesses are following that lead. While it’s becoming common for customers to pay for the right to use a credit card at restaurants and retailers, credit card surcharging hasn’t been a common practice in the healthcare industry. 

In a recent PaymentsJournal podcast, Ali Badawy, Director of Enterprise Healthcare Payments Solutions at U.S. Bank, and Don Apgar, Director of Merchant Payments at Javelin Strategy & Research, discussed how healthcare providers can leverage credit card surcharging to cut costs significantly while keeping their customers engaged.

Consumer Conditioning

Credit card surcharging has been permitted in most states since 2013, and it allows businesses to offset the credit card processing fees charged by card brands like Visa®, Mastercard®, and Discover®. The fees are instead passed to the customer when they use a credit card at the point of sale.

The surcharge amount is often a percentage of the overall purchase and can range from 1% – 4% and can be applied in any environment where a cardholder makes a payment—in-store, online, and even in text-to-pay. Surcharges are only allowed for credit card transactions, so consumers can avoid them if they pay by debit card, check, ACH, or cash.

“When surcharging was launched, business customers were skeptical, and understandably so,” Badawy said. “However, as it has developed over the years, consumers are more conditioned to it. If a customer’s transaction is in the government space, or with an online retailer or service business, those environments have adopted surcharging to where now consumers expect it.”

The Proliferation of Surcharging

The normalization of surcharging has expanded its use cases, which now covers industries across the spectrum. As businesses have shifted online, surcharging has evolved to become a factor in e-commerce.

The driving force behind the proliferation of surcharging is cost savings. Even though credit card fees of 1% to 4% might seem relatively nominal, the aggregate can quickly become a significant amount. Reducing those costs is what makes surcharging attractive to business owners, especially for enterprise-scale businesses.

“For example, a large healthcare franchise in the ambulatory space was exploring options to help their franchisees reduce their overall costs,” Badawy said. “After they researched surcharging, they found out they could save over $1 million each year based on their volume numbers.”

A Safe Strategy

The main concern about surcharging is that it could alienate customers, but that is rarely the case. Once a business starts a surcharge program, they are highly unlikely to terminate it.

“There are often apprehensions when an organization’s average ticket size is large, ranging from $5,000 to $20,000,” Badawy said. “The business owner might be concerned that if they apply a surcharge, they will lose the customer, but that’s usually the farthest thing from the truth.

Healthcare providers might still be reluctant to surcharge because it isn’t a common practice in the industry yet, but those concerns are likely unfounded.

“Most consumers aren’t shopping for a healthcare provider based on cost,” Apgar said. “They go to a doctor or a dentist because they have a connection with that provider and they’re receiving good care. Especially in industries like healthcare, where there can be substantial inelasticity in pricing, a nominal credit card surcharge isn’t enough to alienate a customer. From a business perspective, it’s an increasingly safe strategy to use.”

Every Endpoint

When researching banks or processors that offer both credit card processing and surcharging, business owners should also look for a processor that specializes in healthcare. In addition, the business owner should understand if the platform allows surcharging at every endpoint where the provider collects payments.

“If the software only allows surcharging in the front office of a healthcare entity, for example, but the majority of its collections are in the back office or online, then that service is not likely to help the business achieve its goal,” Badawy said. “A business that’s considering credit card surcharging will have to evaluate every end point where they’re collecting payments and verify if the process can support their needs.”

Partnering with the right processor before shifting into surcharging is key because there are compliance requirements. Regulations don’t allow surcharges on debit cards, so the card acceptance technology must be able to discern a credit card from a debit card and only apply the surcharge to credit cards. 

A business is also required to advise customers that it will apply a surcharge to credit card transactions. There should be clear signage in the front office, but also everywhere a provider accepts payments, including online check-out. Another best practice is to detail surcharges on billing statements and invoices.

“A business has to apply a surcharge correctly and compliantly, but it should also generate a consistent user experience,” Apgar said. “As the customer does business with the organization across a variety of channels, whether it’s paying in an office or paying on a bill pay site, it’s important to find a process that that can support all those aspects.”

Getting Relief

Surcharging at the point of service will continue to gain momentum. Though some regulators have strived to reduce or eliminate credit card fees, there is no immediate shift on the horizon.

“The $30 billion settlement between Visa and Mastercard and merchants has been tabled, so who knows when businesses will see relief from interchange fees?” Apgar said. “Surcharging is a tool that merchants and healthcare providers can use today to offset some of the costs of credit card acceptance and still keep compliant and customer friendly.”

Particularly in healthcare, where many healthcare entities and systems have had lingering financial difficulties that were exacerbated by the pandemic, surcharging will pick up steam.

“As rewards cards, which often have higher processing fees, become more popular, surcharging is a means to offset those fees and keep business owners’ margins intact,” Badawy said. “Surcharging will grow within all verticals, but especially in healthcare, because it can substantially reduce costs. Healthcare providers can use those resources to serve their patients and scale their businesses.”

The post How Credit Card Surcharging Can Benefit Healthcare Providers appeared first on PaymentsJournal.

Financial institutions are exploring new ways to attract younger savers, and their payment habits are evolving in turn. Credit cards have now edged out debit cards as the preferred choice, even among younger generations. Additionally, digital wallets and peer-to-peer methods like Venmo and PayPal are gaining significant traction in this demographic.  

Velera’s Eye on Payments study, a comprehensive annual assessment of payment choices among credit union members and other financial institutions, examines how these trends shift over time. Now in its seventh year, the research delves into the factors shaping consumer choices across various payment methods, with a particular focus on how these preferences evolve at different life stages. 

In a recent PaymentsJournal podcast, Velera’s Tom Pierce, Chief Marketing & Communications Officer, and Norm Patrick, Vice President of Velera’s Advisors Plus, discussed the findings from this year’s survey with Brian Riley, Co-Head of Payments for Javelin Strategy & Research. They also explored how credit unions can leverage these insights to better serve their members.

Credit Over Debit

After five years of debit cards dominating payment preferences, Velera’s research reveals a notable shift toward credit. This year, 37% of respondents indicated a preference for using credit at the point of sale, surpassing debit at 35%. Relatedly, 40% of credit union members reported applying for a credit card within the past year.

Source: Velera’s Eye on Payments 2024 report

Among younger demographics, the trend is even more pronounced. Half of both older and younger millennials, as well as Gen Z respondents, stated that they had applied for a credit card in the last 12 months. Velera’s findings show a 40% preference for credit as the primary payment method within these younger age groups.

“That generational flip is really important in the credit union industry because of the aging membership,” said Riley. “Being able to react and have the right offerings in place for the younger generations is something that’s essential for credit unions.”

Other Payment Methods

Mobile wallet usage has seen a significant surge in recent years. The percentage of respondents using a mobile wallet at least a couple of times a month jumped from 27% in 2022 to 34% in 2023, and this year, that figure rose to 50%. Overall, about 60% of credit union members plan to implement mobile wallets within the next six months. Not surprisingly, the lion’s share of this activity is driven by younger consumers.

Source: Velera’s Eye on Payments 2024 report

This demographic also expresses strong concerns about fraud and identity theft, highlighting the importance of engaging with them to build trust and increase their comfort with the fraud prevention tools issuers offer.

Another payment method that has experienced a substantial increase is peer-to-peer (P2P) payments. Just 12% of respondents reported using P2P as a primary payment method in 2023, but that number more than doubled in 2024, rising to 25%.

“As we look at the younger generations, there are a lot more people who are using P2P as a primary method,” said Patrick. “It’s important that they be educated with the ins and outs of using those different solutions. When you have money sitting in your Venmo account, it is outside of the financial institution. It may not be insured, and it may not be a fraud check for losses.

“With the boomer generation, there isn’t a ton of interest in P2P,” he said. “In fact, 62% of those surveyed said they do not use P2P type of methods at all. But that means that there is some that do, and there could be some opportunity to encourage them to do more.”

Design for Living

Card design is also top-of-mind. In fact, more than half of credit union members said that card design influences what type of card they choose to use on a regular basis.

“That was up from 39% last year, and we were pretty amazed with the number last year,” said Pierce. “It seemingly has taken place overnight.”

These design preferences can include various factors, such as the material of the card, its overall design and whether it offers contactless payment capabilities. Is it made from sustainable materials? Is it sleek? Or perhaps an affinity card that showcases their favorite sports team?

Card design is an especially important consideration for younger consumers. Among Gen Z respondents, 82% indicated that the design of the card was a key factor in their decision-making.

“At the end of the day, it’s a billboard for the financial institution,” said Riley. “It’s important to have that card engineered properly with a good-looking design, and have all the features that you’d expect, such as chip and pin and the contactless tie-in.”

Taking a Holistic View

Given the growth in credit card usage, it’s an important time for credit unions to look at their card programs holistically. Credit unions are increasingly targeting younger generations, and more than half of this group said they applied for a credit card in the past 12 months.

“How easy is it at your credit union to apply for a new card?” asked Pierce. “You’ve got to look closely at that and make sure you have a quick and effective origination process. Offering a good reward structure and customizing that card so it appeals to a wide range of age groups is also essential. And certainly, tying back to the younger group is an urgent need across the board.”

For more of these insights and to see the full results of the study, DOWNLOAD THE WHITE PAPER at Velera.com.

The post Shifting Trends: Credit Cards and P2P Payments Take Center Stage appeared first on PaymentsJournal.

Over the past five years, the U.S. has experienced an average of $18 billion annually in natural disaster-related damages. Millions of individuals are impacted by natural disasters each year, facing financial challenges such as damage to homes, the need for temporary shelter, and the replacement of personal belongings and food.

With delays in funds distribution due to legacy payout methods and outdated processes, there has been a focus on the benefits of using prepaid cards for payouts.

One popular solution to help people recover is prepaid cards. In a recent PaymentsJournal podcast, Marchelle Becher, Business Development Executive with B4B Payments and Jordan Hirschfield, Director of Prepaid at Javelin Strategy & Research, spoke about how these cards have become an essential tool for addressing the needs of disaster victims.

Looking for Ways to Help

The Federal Emergency Management Agency (FEMA) has been considering changes in the way it provides financial resources for victims of natural disasters. Given the frequency of disasters, aid programs and funders are becoming more proactive rather than reactive.

“We’ve seen this past year that while we’re reacting to Disaster A, Disaster B is hitting,” said Becher. “And when you look at what type of recovery aid is needed, there’s a gap between those who need immediate aid for basic necessities versus the need for long-term assistance.” Prepaid fills the critical gap to deliver funds immediately to those without bank accounts and to those who don’t have access to their bank cards due to disasters.

FEMA recognizes that prepaid cards are well suited to meet the distribution needs when disaster strikes. Traditional payment methods can be slow and costly, unlike prepaid cards that can be issued immediately, reloaded securely and simplify the reconciliation and reporting process. The flexibility of prepaid cards allows funders to set spend controls (closed-loop) for specific merchant purchases or (open-loop) allowing recipients to make purchases based on their individual family needs. Funders and recipients prefer the convenience and security of reloadable prepaid cards or virtual cards that can be used immediately for online purchases or loaded to a digital wallet. And the process is very streamlined.

Unfortunately, survivors of natural disasters are left to navigate complex bureaucratic processes and the painful task of putting their lives back together. Dealing with the loss of property, emotional trauma and potential change in employment is compounded when trying to navigate the complex financial aid paperwork leading to delays in aid disbursement,” said Becher.

“It can be months to years before funds are ever in the hands of those that need them. Most recently we’ve seen it with Maui, where over a year after those fires hit, there are still people who haven’t received any funds.”

Tracking Information

Another benefit of prepaid cards is the ability to track how the funds are being used. These programs receive funds from many different organizations, and often, the funders want to determine how the money should be spent. With a prepaid program, they can restrict those funds to be used solely for food and housing, or make them inaccessible via ATM.

At the same time, the ability to track spending gives funders insight into the needs of those affected. They can see how much is being spent in each category, as well as how quickly the funds are being used—whether that’s within the first couple days or over a longer period of time. Features like dynamic spend control and just-in-time funding help organizations improve cash flow and reduce fraud risk.

“Accountability by both the recipients of the funds and also those who are in charge of distribution of funds is extremely important,” said Becher. “This information will help in the coming months and years as we continue to deal with natural disasters and build humanitarian aid programs to help. Based on the configurability of a program, the reporting and analytics can show that funds were distributed and used as intended.”

Doing the Prep Work

It’s important that the entities behind these humanitarian efforts do their research and speak to various payment providers. Having multiple payout methods is key, whether it’s cash from a cardless ATM or a prepaid card. It could even be an ACH payment into someone’s existing bank account, although in the wake of a disaster, even those who are employed may not have access to their bank account or phone.

“I would much rather be providing a digital or physical card that has protection as opposed to giving somebody cash,” said Becher. “We’ve seen that in desperate times people will harm someone for very little financial gain.”

Another advantage of physical prepaid cards is that they can be pre-ordered and handed out to individuals in need, or at locations where food, water, and medical assistance is being provided.

“The beauty of prepaid programs is that for the most part, you don’t incur any expense until you actually start issuing cards,” said Hirschfield. “You can have a stack of cards that essentially have no value on them, and they’re valueless until you actually load and activate the card. What that means is that you’re not sitting on liability of cards for months at a time waiting for a disaster. You’re ready to act quickly and put these programs into place, because you have that setup work already done.”

While there’s a great deal of regulatory oversight in funding and distributing these cards, it’s even more important to be prepared and ensure that everyone is following the rules, collecting the information needed, and making sure the programs are compliant. Organizations providing aid to disaster victims should address all of these concerns in order to do the most possible good for those in need.

“No one’s bringing these disasters on themselves,” said Becher. “We can’t lose people when there are solutions out there that can help bridge the gap, get them back into the workplace and continue rebuilding their lives.”

The post Prepaid Cards: A Vital Aid for Disaster Relief appeared first on PaymentsJournal.

The payments industry has seen such rapid growth and dramatic technological advancements in recent years that conferences have become a crucial way to stay connected to the pulse of the space. There are few bigger industry events than Nacha’s Smarter Faster Payments 2025, which will kick off in New Orleans next spring.

In a recent PaymentsJournal podcast, Peter Tapling, Managing Director of PTap Advisory and a member of the Conference Planning Committee, Ashley Mustico, Director of Education and Accreditation at Nacha, and Brian Riley, Director of Credit and Co-Head of Payments at Javelin Strategy & Research, discussed the topics on tap for next year’s conference, the exhibitor experience, and the multitude of ways that payments professionals can make new connections.

The Payments Prom

Nacha might be most associated with the ACH network it governs, but the Smarter Faster Payments conference encompasses the entire payments ecosystem. Last year, the conference drew over 2,200 attendees, including professionals from financial institutions, fintechs, and organizations that serve as end users of payments services.

“It’s like the prom of the payments industry,” Tapling said. “You’ll run into a lot of people who support the ecosystem, everything from consultants and service providers to regulators, not just the staff who write the rules around the ACH.”

Smarter Faster Payments also differs from other conferences because the speakers and leaders aren’t whisked away once their talk is complete. Attendees will get the chance to meet and engage with the speakers, exchange business cards, connect on LinkedIn, and carry the conversation forward.

“The attendees come because they know that the conference offers unmatched access to first class payments education,” Mustico said. “People know that when they come here, they’re going to walk away with fresh ideas, brand new partnerships, the exchange of business cards, and practical, tangible solutions to everyday concerns that they’re facing at their organizations.”

Covering the Spectrum

There will be 10 main topics, or tracks, that the educational sessions will cover. Many of these sessions will provide different solutions to the same central question—how do organizations provide the innovation that their customers deserve and the frictionless experience that they crave, while staying compliant and keeping them safe at the same time?

The tracks were selected to cover the full spectrum of the payments industry, highlighting innovations across various payment rails, evolving regulations shaping the industry, and strategies for mitigating fraud and risk.

One of the innovations being implemented in every facet of the payments industry is artificial intelligence. Organizations are using AI to detect fraud, enhance security, and drive efficiency, and that is why there is a new track at the Smarter Faster Payments conference that is dedicated to AI.

“We’re going to see a lot of Rule 1033 content, which came out of the CFPB quite recently,” Tapling said. “The conference planning committee had hundreds of session submissions, and it’s always a tough effort to read those, understand those, and make sure we have a great mix of content and speakers and not too much overlap.”

In addition to the informational content, there will be recognition for those professionals who have been selected by the 15 under 40 program. The program is for under-40 professionals who have made significant impacts on the payments ecosystem.

“I would be remiss if I didn’t mention our awesome keynotes this year,” Mustico said. “We have Mike Massimino, who’s coming to talk about the importance of cohesive teamwork, which he knows just a little bit about from his time as a NASA astronaut, where he worked on the Hubble Telescope. Then we have Kyle Sheely, who’s an author and an influencer, and he’s going to be talking about nurturing ideas that can lead to more innovation.”

Networking Opportunities

There will also be plenty of networking opportunities. There are openings to connect during breaks, in the exhibit hall, and plenty of chances to meet over breakfast or dinner.

“I throw in preparation, preparation, preparation,” Tapling said. “That means that once you get registered, if you go to the app you can see the attendee list and identify the people that you want to meet with. But you want as much as possible to not overlap the education sessions with meetings.”

To eliminate potential overlap with the sessions, there are dedicated networking events built into the conference schedule. Some of the events will be tailored to various audiences, such as a gathering for lawyers in the industry, and a reception for professionals that hold a Nacha accreditation.

There are also activities that are available to all registered attendees, such as the exhibit hall networking event on Monday. The event occurs in the exhibit hall after all the educational sessions are over, so attendees don’t have to miss an educational session to meet the vendors and see the innovations. The conference has historically had over 90 exhibitors.

Attendees can also check out the George Throckmorton Innovation Center, which is sponsored by the London Stock Exchange Group. The Innovation Center will have an array of fintech demos so professionals can see the new technology solutions coming down the pipeline.

And finally, there’s the Nacha accreditation awareness center, where attendees can consider one of the organization’s accreditation programs and learn about the scope of the exam and how to successfully prepare for it.

“My favorite event every year is the Tuesday Night Out, which is a fantastic opportunity to let loose with your new contacts,” Mustico said. “There’s usually dancing, there’s great food, and it’s just a great way to put an end cap on a fantastic event.”

Getting a Beignet

In the thriving payments industry, conferences are one of the most important ways to learn about trends and make contacts with other professionals. Nacha’s Smarter Faster Payments 2025 is a unique opportunity to learn, connect, and grow, and it takes place from April 27-30 in New Orleans.

“As an attendee, it’s important in New Orleans not to get hung up going for beignets at Cafe du Monde,” Riley said. “There’s a real purpose to this conference and the educational tracks are a big deal. Nacha has a prime name in the payments industry, and it sounds like the place to be. “

With so much going on, a booth in the exhibit hall is a great anchor where organizations can meet with customers and colleagues.

“If you’re thinking that you want to get in on the action of the exhibit hall, there’s still time to secure a booth at Smarter Faster Payments 2025, but our booth rates are going up after January 1,” Mustico said.

Learn more and register for next year’s conference

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Money 20/20, one of the largest financial conferences in the world, has become a must-attend for payments, fintech, and banking professionals. This year, hot topics included instant payments, cross-border payments, and the integration of AI into fintech. However, the acceleration of payments innovations has also caused a decided shift in the show’s tone.

In a recent PaymentsJournal podcast, Oscar Munoz, Vice President of Sales at Euronet Worldwide, and James Wester, Director of Cryptocurrency and Co-Head of Payments at Javelin Strategy & Research, discussed their experiences at Money 20/20, their insights on the payments industry, and the factors driving payments modernization.

The Next Guy

Thousands of companies at Money 20/20 showcased innovations spanning everything from cards to account-to-account payments. Alongside these advancements, there was just as much emphasis on fraud prevention and risk management.

As payments continue to accelerate, security has become a pressing priority. One of the most talked-about topics discussed at Money 20/20 was the incredible growth of instant payments. The rising adoption of real-time payments has driven a demand for modernized platforms capable of supporting them.

At past conferences, financial services firms often adopted a “wait-and-see” approach, observing how innovations might impact the industry before diving in themselves. However, that mindset has shifted. The industry is already embracing next-generation payment solutions, including instant payments, cross-border payments, and stablecoins.

“There’s no more waiting and seeing, because to take advantage of any of those payment options for your customers, you must have a modernized payment infrastructure,” Wester said. “The assumption is you’ve used the last decade to modernize your payment infrastructure. If you haven’t, you had better get going, because everything that’s going to happen from here requires that you have gotten to that point.”

McKinsey conducted a recent study about the costs of delaying a payments modernization project, which found that keeping and maintaining legacy systems was draining roughly 70% of organizations’ IT budgets, and it would only become more expensive as time goes by.

“Many have thought that modernization projects are something for the next guy to do,” Munoz said. “When you see what is happening today, which is you have 30-year-old code that was great and built for purpose, but then that updates are coming out twice a year, minimum. People are realizing that you have to go through (payments modernization). It’s no longer the next guy, you are the next guy.”

Orchestrating Options

Despite the various alternative payment methods available, cards are expected to maintain their dominance. The card market is projected to grow at a compound annual growth rate of 7.9% from 2023 to 2028, driven by an increasingly digital landscape. In three years, Euronet estimates that 95% of card payments in developed markets will be contactless, while virtual cards continue to gain traction. 

While cards remain a staple, instant payments are experiencing impressive growth, especially in markets outside the U.S. For example, instant payments are growing at a CAGR of 30% to 40% in countries like India and Brazil. However, the appeal of instant payments extends beyond speed—they also play a pivotal role in accelerating financial inclusion by reducing costs and expanding access for underbanked populations. 

As the array of payment options proliferates, payment orchestration is becoming essential. Recent studies show that 60% of enterprises with revenues exceeding $500 million are considering payments orchestration platforms. These platforms can improve rates by up to 20% while increasing security and scalability.

“It’s all about that optionality for businesses and consumers,” Wester said. “You have to support all those options, but then you have to be able to support them across the scale. You also have to think about risk and compliance across that scale, because there are no oopsies in payments. You have to be able to do it correctly from day one.”

The increasing number of options might be one of the factors that have some institutions on the sidelines. For instance, there are two instant payments rails in the U.S.—RTP and FedNow—and both are growing rapidly.

“Organizations might be waiting to see which one is going to win, but both are going to continue to grow,” Munoz said. “It’s important that you’ve got to have a foot on both rails. If you look ahead, at some point the ecosystem is going to converge in a way that it won’t matter if I pay from my bank account or if I pay from a card, I’m the same consumer no matter which form of payment I use.”

The Path to Innovation

As the payments infrastructure converges, consumers expect real-time information and access wherever they are in the world.

“When you ask a consumer what they want in terms of payments, oftentimes they can’t tell you what they want, but they know they want it,” Wester said. “What’s interesting is how quickly things become expectations, where consumers didn’t even know what they wanted until they experienced it. Once they experience, say, tap-to-pay, now they want it every time.”

Organizations that build payments products will have to anticipate customer expectations and design products with that in mind. To meet these demands, solutions should be cloud-native to maximize the flexibility and usability. They should also leverage modular microservices, with 100% API availability, enabling seamless integration and scalability.

Additionally, the platform must incorporate a distributed architecture to guarantee uninterrupted operations and ensure the organization remains always on.

“To make the switch, a lot of institutions are doing a phased approach,” Munoz said. “How do you do modernize when you have real traffic? A company can’t go from the ground to the cloud by flicking a switch, they need a platform to ensure their business today is taken care of. Then they are creating this day one, day two, day three path to innovation, without putting their current business at risk.”

The Rhythm of the Dance

The risks to institutions have been well-documented, and they are one of the main reasons that lawmakers have begun to implement a regulatory framework around fintechs.

“The first generation of fintech was more tech than financial,” Wester said. “There was that sense of move fast and break things, and that’s the way you come at a technology problem, but that idea doesn’t work in financial services. Tech is great, innovation is great, but when a customer goes into a store, they want to pay, the merchant wants to receive, and everybody wants to be whole at the end. That is a financial services arrangement, not a technology relationship.”

To modernize to today’s standards, an organization needs a platform that can speak the language of financial services. They also need a platform that can be a single technology stack for the myriad of payment types. However, just as important as the technology is the expertise of the company that provides it.

“Experience makes all the difference,” Munoz said. “It’s extremely important to be able to (modernize) with a company like Euronet. We have the robust, established organization to be able to manage these projects, not just at the rhythm we choose, but at a rhythm where we can dance with the client that is doing the modernization project.”

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Organizations seeking more flexibility and sophistication in devising transaction fee and commission structures are increasingly turning to rules-based fees engines.  Billing systems are designed to handle invoicing and collect payments, but they are limited in their ability to help companies create new fees and commissions.

Rules-based fees engines allow payment processors to stay competitive and profitable, enabling them to offer new value-added services, develop creative incentive programs, create new revenue streams, and respond quickly to market shifts. In a recent PaymentsJournal podcast, BHMI’s Chief Technology Officer Mike Meeks and Senior Program Director Cheryl Fitzgarrald spoke with James Wester, Co-Head of Payments at Javelin Strategy & Research, about the advantages of rules-based fees engines and who benefits from them.

Developing the Solution

Rules-based engines allow fees and commissions to be configured from any combination of attributes, such as the payment method used, the amount, the merchant category, and the time of day the transaction occurs. Unlike traditional billing systems, a rules-based fees engine provides the ability to measure and test the financial viability of new fees and commissions before they are implemented.

“Back in 2004, we were approached by one of the country’s largest debit networks, which was not able to introduce new products or new pricing strategies without long software development cycles,” said Meeks. “All of their rules for how they price things were embedded in code, which made it very slow and costly to roll out new structures and to respond to what their sales teams were asking them to do in a timely manner.”

“They needed a solution that was flexible and could meet unforeseen future requirements,” he said. “That’s what drove us to the concept of a rules-based engine and the kind of open-ended capabilities it would provide. For more than 20 years now, we’ve been implementing these solutions for companies all over the world.”

This solution gives companies the ability to be creative and innovative, supporting any business opportunity, client relationship, or product offering that marketing and sales bring to the table. It also speeds up time to market, as new fee and commission structures can be quickly configured and implemented.

“Research is showing that there is a requirement now in payments for companies to be able to pivot quickly, to be able to bring products to market quickly and to not necessarily be held hostage by those development cycles,” Wester said.

A modern rules-based fees engine should have the flexibility to create any type of fee or commission on any type of payment transaction. This includes card-based transactions as well as account-to-account and real-time payments. It should also have no limitations on the types of fees or commissions that can be configured and should allow for additions and modifications without requiring software changes or downtime. 

Another important factor is that the system must be able to access payments data in real time, applying the appropriate fees or commissions while the transaction is still in flight. Finally, rules-based fees engines should provide companies with a real-time view of fee revenues, enabling them to analyze the financial impact of those revenues and easily determine if adjustments are needed.

Under the Hood

A rules-based fees engine integrates data from multiple sources. The most common way to access data from these sources is real-time APIs, but in some cases, automated file-based mechanisms are required, depending on what is supported by the originating data source.

“The typical sources that we see are credit and debit card transactions that an authorization system is writing to a transaction log file, a clearing system that creates a clearing file for POS dual message systems, and a card network that creates a settlement reconciliation file,” said Meeks. “A modern rules-based fees engine can use data from any and all of those sources to assess fees and commissions as a transaction is being processed.”

Once that data is collected, companies have discovered a wide variety of use cases for the technology. “The possibilities are unlimited,” said Fitzgarrald. “Some common use cases would include things like calculation of gateway fees, processing and service fees, and recurring fees. They are also used to calculate many different types of commissions. If you think about it, a commission is just like a fee, but the money goes the opposite way.”

Opening Up Creativity

Rules-based fees engines have allowed companies to be more creative with their services and pricing structures. Fees can vary based on time sensitivity, such as higher fees during peak business hours and lower ones during off-hours. Companies can also introduce fee models tied to loyalty programs or specific merchant partnerships, incentivizing behaviors that increase transaction volumes or customer loyalty.

Once a company implements a rules-based fees engine, the infrastructure allows them to better analyze and address important questions like which fees bring in the most revenue, which commissions provide the most incentive, and whether a particular service can be expanded or rolled out to other customers.

“One of the amazing parts of this is the approach to testing,” said Wester. “Testing is very difficult and time consuming. The idea that you can test a product or a fee, and pull it back if it doesn’t work, gives you a tremendous amount of flexibility.”

Any company that processes transactions and has a need to calculate fees and commissions can benefit from this technology.  “Probably the single most important reason that I’ve heard for people adopting rules-based fee engines is that they are money makers,” said Fitzgarrald. “They allow the company to rapidly configure creative fee and commission models and let them pivot quickly in response to changing market conditions. All of this Is done without the cost and delay of code changes.”

Learn more about maximizing your pricing and fee structures.

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As the world hurtles headlong toward real-time payments, speed and efficiency have often been prioritized over security. However, with faster payments comes faster fraud, and just as organizations deploy technology to streamline their systems, criminals are deploying complex schemes on a global scale.

In a recent PaymentsJournal podcast, Dal Sahota, Director of Trusted Payments at LSEG Risk Intelligence, and Brian Riley, Director of Credit and Co-Head of Payments at Javelin Strategy & Research, discussed the prevalence of fraud, the challenges it presents as payments accelerate, and the ways organizations can defend themselves.

Sophistication at Scale

Criminals seize upon any weakness they can exploit. They might imitate genuine companies or individuals using deepfake IDV profiling and attempt to manipulate organizations, or use authorized push payment scams to defraud vulnerable individuals.

“Is there ever a day where I don’t hear a new anecdote about fraud, or new evidence of fraudsters’ sophistication?” Sahota said. “The sophistication is at a scale we’ve never seen before, and it’s across the globe. It’s not one or two individuals, its highly sophisticated networks that are creating a dramatic impact and financial consequences across the ecosystem.”

Traditionally, payment systems had built-in delay payment processing, particularly to provide a buffer for merchants, customers, and institutions. The added time gave all parties an opportunity to ensure that the transaction was legitimate and authorized.

As technology has accelerated payment processing, the objective has shifted to delivering funds to recipients in real time. However, this eliminates the longstanding safety net, as instant payments are often irrevocable.

“A good example is credit cards, which traditionally took three days to reconcile,” Riley said. “It was practical because the business model was built in the 60s and 70s and that delay was inherent. Now even debit card payments, or a clearance on a check, they happen in a snap. It’s important to have controls on the front end of the process rather than on the back-end settlement.”

A Perfect Storm

Guardrails are even more critical as cross-border payments gain traction. Fraud is more difficult to catch when payments are sent across different jurisdictions, and criminals know that.

“It’s a payments perfect storm where on one side you have faster payments, which create a lot of benefits across the marketplace,” Sahota said. “But at the same time, on the right-hand side of that storm, the deep clouds of fraud are exposing vulnerabilities due to the speed at which payments can move today.”

Faster cross-border payments face issues on several levels. Some countries have fraud controls built into their financial infrastructure that make it simpler to conduct bank account verification, and to identify and share data on fraudulent accounts and cards.

“Banks are typically linked through the central bank, so there’s an easier flow in countries like the U.S. or Canada,” Riley said. “Without that link, there’s no universal banking rule for fraud mitigation or vetting payments. You have that complexity where it’s going faster, it’s crossing borders, and countries have different standards for fraud management throughout.”

High Exposure

Fraud vulnerability is especially pronounced in industries that are less regulated or lag behind in adopting digital payment processing. These organizations are more likely to rely on paper-based or email-based communications, which create exploitable weaknesses for criminals.

Authorized push payment fraud, where criminals send phony invoices or pose as vendors, has become a rampant threat. Criminals know it can be difficult for larger organizations that receive invoices from multiple supply chains and multiple vendors to keep tabs on each invoice.

“When an update comes through from a vendor that their bank details have been updated, there aren’t effective ways for companies to carry out verification on all those types of invoices and all the updates coming through,” Sahota said. “That creates high exposure on the side of corporates, who might not have the anti-money laundering or fraud controls to mitigate that exposure.”

Within the payments infrastructure, there is often an assumption that companies will establish their own frameworks to manage risk. In contrast, regulators typically assume that consumers lack the knowledge or the resources to protect themselves. While consumers protection is crucial, the risks faced by organizations can be equally damaging.

“Instead of consumer payments where you’re moving high-volume, low-value payments in the thousands of dollars, corporates are moving low-volume, high-value payments in the millions, or tens of millions of dollars,” Riley said. “If you picture a multinational company where invoices are coming in, It’s a great environment for fraud.”

An Array of Protections

Because criminals are constantly probing for weaknesses, organizations require multiple layers of defense. Protections should be in place at every critical touchpoint: during customer onboarding, when users make account changes, and as transactions occur.

“It’s not one defense, it’s multiple defenses,” Sahota said. “At any touch point where a customer—or a potential fraudster—is engaging with your business, you want controls and defenses in place. Continue to update them on a cyclical basis because as criminals get smarter, they’ll find ways to sophisticate and infiltrate an enterprise. “

One of the reasons why it is so critical to have ongoing fraud prevention initiatives is because, in many large companies, there can be delays in implementing new solutions and procedures. On the other hand, criminals don’t need meetings and approvals to shift course.

“How do we get in front of the problem and get ahead of the fraudsters, when they seem to be somewhat ahead, if not way ahead, of the market?” Sahota said. “The agility of the fraudster means not all these problems can be solved by one mechanism.”

The Right Hands

In discussions about innovation, faster payments, and new fraud prevention solutions, the impact of fraud can sometimes be dismissed.

“We should not lose sight of the emotional impact fraud creates,” Sahota said. “It could be for anybody—brothers, sisters, moms, dads, grandparents—there’s no immunity here. At the corporate level there can be reputational impacts, but there are also impacts to employees. If an accounts payable member pushes out a payment to a fraudulent vendor, they may have the fear of being fired or facing repercussions.”

Fraud has such far-reaching impacts on both a corporate and individual level that it should always be top of mind for organizations. That is especially true as faster payments continue to gain traction.

To combat that threat, many companies are turning to solutions like LSEG Risk Intelligence’s Global Account Verification platform. The platform was specifically designed to combat authorized push payment fraud—it is a global account verification product which allows customers to input key data elements and verify a recipient before a payment is issued.

“It provides greater certainty that you’re not getting duped out of funds, that you’re not getting scammed,” Sahota said. “There is greater certainty at the point of payment initiation, so an organization knows that the money is going to land in the right hands, and not the wrong hands.”

The post As Payments Speed Up, Slowing Down Fraud Is More Critical appeared first on PaymentsJournal.

Prepaid cards are in the midst of a dramatic transformation. With the incorporation of digital wallets, contactless payments, and artificial intelligence, prepaid cards have quickly become one of the most popular payment tools.

In a recent PaymentsJournal podcast, Mani Farhang, Vice President of Product at Fiserv Gift Solutions, and Jordan Hirschfield, Director of Prepaid at Javelin Strategy & Research, discussed the key innovations occurring in the prepaid space and the ways merchants can leverage them to drive customer engagement.

A Generational Shift

The prepaid card market was once dominated by financial giants like Visa and Mastercard, but PayPal and Apple have emerged in the industry. And it’s no coincidence that these two companies also offer two of the leading digital wallets.  

“The themes in the industry are the broader shift to digital payments and increasing integration into first-party and third-party wallets,” said Farhang. “Our research indicates that 70% of consumers have downloaded a merchant app to store gift cards and fulfill loyalty rewards. This is driven by a generational shift—millennials and Gen Z are more likely to use digital gifting and take advantage of stored value in loyalty programs.”

In the prepaid industry, Starbucks has been the beacon for other brands to follow due to its success with end-to-end loyalty programs. One important aspect of Starbucks’ prepaid program is how it bridges between physical and digital gift cards.

For many consumers, a physical gift card is their introduction to a brand. Organizations who follow Starbucks’ lead and offer customers the means to digitize their cards into a stored-value wallet can use the initial interaction to introduce consumers to their loyalty and reward program.

“That incentivization makes for a more immersive experience for the consumer, not just in gifting but in self-use,” Hirschfield said. “There is also the opportunity to engage customers beyond the value of the initial card. For merchants, they don’t want the initial prepaid card to be the only interaction—they want it to become the start of a cyclical relationship.”

Lifetime Value

Merchants have an opportunity to expand their prepaid program by upgrading their payments terminals to support contactless payments. Contactless payment through near-field communication (NFC) technology has revolutionized the payments industry, and NFC has begun to gain traction in prepaid.

There has also been the emergence of omnichannel, multi-purse wallets, which are first-party wallets that act as stored-value containers for multiple funding types. These wallets give consumers multiple ways to fund their stored-value wallet, whether through gift cards, pay-by-bank, debit cards, or credit. For merchants, it’s another way to engage and reward loyal customers.

“Moving forward, there is the opportunity for brands to offer rebates and rewards, and even integrate third-party health and wellness programs into their digital ecosystem,” Farhang said. “The orchestration of disparate payment instruments into one ledger is advancing the integration with contactless payments.”

These instruments are frequently contained in digital wallets, which are increasingly becoming the primary option for consumers, even in brick-and-mortar transactions. Businesses should have a strategy to leverage digital wallets so they can reward consumers and pre-load funds into wallets, which is a key opportunity to offer discounts and create exclusivity.

Many mid-tier businesses utilize platforms that provide white-labeled apps and digital wallets that can be integrated with a merchant’s existing app, which allows them to merge loyalty points from multiple brands into a single source. Though first-party wallets are a powerful tool, third-party wallets like Apple Pay and Google Wallet should also be incorporated in an end-to-end loyalty program.

“The more you engage with a customer the more you remove them from the traditional transaction process and bring them into a lifetime value scenario,” Farhang said. “Acquisition costs will decline because the brand is driving higher engagement. It can be a powerful tool for merchants because prepaid cards can increase the amount of the average order and drive repeated transactions.”

The Behaviors of Purchase

Making prepaid transactions more secure is another way to increase customer satisfaction. Fraud is a hot-button issue within the prepaid space, but it’s also an area where another emerging technology—artificial intelligence—can make an impact. AI’s superior pattern recognition abilities make it an efficient tool for detecting fraudulent activities in real-time.

“AI can be implemented to understand if the behaviors of purchase match the existing behaviors of the customer we have engaged with and understand,” Hirschfield said. “The less anonymous the purchases, the more those technologies can identify when purchases seem suspicious. Fraud and scams won’t ever be eliminated, but the prepaid industry can take more steps to mitigate them.”

E-commerce merchants can use AI to vet both B2B and B2C accounts, because machine learning can collate signals from a range of business data and fraud detection programs in near real-time. This functionality can help merchants with decisioning and authorizations, which is often a convoluted and cumbersome process.

There are also ways to implement technology that can reduce fraud at physical locations. At a retailer, a cashier might get an alert if something about a purchase looks suspicious, and they could ask the customer a series of questions to ensure the purchase is legitimate.

Overcoming Barriers

Although fraud will always be a concern, it hasn’t slowed the rapid expansion of the prepaid market. Many businesses want to offer branded prepaid cards, but there are often barriers to entry. For this reason, third-party platforms have emerged to provide merchants with a way to get their prepaid products to market sooner.

Prepaid-as-a-service has been driven by the overall shift to digital payments, but it is also extremely effective in certain use cases. In the gig economy, for instance, prepaid cards are often used as a payment instrument for freelance contractors.

Many governments utilize prepaid cards to disburse payments to their citizens for various reasons. Corporations are also increasingly giving prepaid cards to their employees as incentives for loyalty or performance.

“Whether it’s a retailer or a government entity, their priority is serving their customers or citizens,” Hirschfield said. “The best practice is often for them to focus on providing their products or services and implement best-in-class back-end systems to run their prepaid programs.”

The Core of Change

To achieve an optimized prepaid program, organizations will have to leverage new technologies, particularly platforms that facilitate personalization. Merchants have more customer information than ever, and AI can use that data to supercharge recommendation engines, making them more contextual and customized.

Artificial intelligence is also the engine used to create the artwork and messages that drive the personalized wrapping and unwrapping experiences that have become a popular part of digital gifting. “Digital gift cards are on the rise, and digital wallets will continue to be at the core of change as more of our lives become digitized,” Farhang said. “The move to digital will continue, and there will be a convergence with the physical in a single stored ledger. The ground is shifting rapidly in the prepaid space—though gift cards are one of the most common applications for prepaid.

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