An Evolving Payments Landscape

5 An Evolving Payments Landscape: New Payment Methods to Support New Business Models Adaptability is a valuable characteristic. The payment sector is developing extremely rapidly, with numerous variations by geography and no clear winners or losers in terms of payment instruments. Consequently, the best payment service providers are those that recognize how the industry is changing and are flexible enough to be able to pivot and embrace various trends as they emerge. It is essential to work with a payment provider that can seamlessly integrate into treasury and offer the functionality and information required to ensure low costs, efficient settlement and effective risk mitigation. However, any consumer-focused business model is dependent on a positive customer experience, and therefore a wide range of payment methods that customers want to use is essential. This may create some tension, as some payment methods that have strong support among consumers can be extremely expensive for merchants. However, within certain segments there is evidence that such payment methods widen the potential customer base and are therefore positive overall for merchants. Given the large number of payment providers around the world and the fragmented nature of many markets, companies can find themselves with dozens of payment partners. One solution is to use a global gateway such as Spring by Citi, which provides access to a wide range of consumer-facing payment instruments around the world — providing customers with the flexibility and choice they need, with a wide range of alternative payment methods, card processing capabilities and instant payments — combined with bank-grade technology. At the same time, Spring by Citi is fully integrated with corporates’ cash management and liquidity structure while settlement, regardless of payment method, takes place within clients’ Citi bank accounts. FX is also fully embedded within the solution. For both corporates pursuing new business models and their target consumers, the future of payments looks seamless. For both corporates pursuing new business models and their target consumers, the future of payments looks seamless. 1 Global payments report, Worldpay , 2017