An Evolving Payments Landscape

Manish Kohli Global Head of Payments and Receivables, Treasury and Trade Solutions, Citi Anupam Sinha Global Head of Domestic Payments and Receivables, Treasury and Trade Solutions, Citi Treasury and Trade Solutions An Evolving Payments Landscape: New Payment Methods to Support New Business Models Businesses around the world are transitioning to new business models. In many instances, their urgency has been accelerated by COVID-19 as conventional distribution channels have been disrupted. One hallmark of many new models is a need to engage more directly with consumers and the consequent prioritization of speed. Through new payment methods, such as instant payments or digital wallets, businesses can better meet consumers’ expectations. Delivering an elevated payment experience is just one way in which business differs within a direct-to- consumer model. There is also an increasing need for service (often in real time and self-service) and fulfillment of data. Clients also want to mine data to help identify fraud. Nevertheless, payments are at the heart of a business’s goal of strengthening customer relationships. They have become more than just an aspect of commerce– they help to build loyalty, engagement and transparency. One increasingly important focus among clients is the desire to offer choice to consumers. Corporates recognize that they need to engage with consumers in a different way than how they engage with institutions: consumers expect to be able to use a wide range of payments types and are less willing to give their business to companies that do not offer their favored payment channels. For corporates that have only just begun to transition to new consumer-focused business models, this is a big change: new business models require payment method flexibility and a fresh mindset.