Author

Sam Kohli

Published

18 December 2025

Estimated Read time

6Mins

Sam Kohli, CEO at PAYNT, on the need for continued innovation with biometric payments to enhance trust

For millions of people, biometric security, or the use of unique personal characteristics such as fingerprints or facial recognition to confirm a person’s identity, has become an everyday process. These technologies are now deeply integrated into a huge variety of activities. From unlocking smartphones to authorising mobile payments. It’s quick, efficient and, compared to many other methods, relatively secure.

The underlying principles are long established. Fingerprinting can be traced back to around 500 BC, when it was used on clay tablets as a form of signature. In more contemporary terms, by the 1970s and 1980s, biometric systems began appearing in government and defence environments. Although these nascent technologies were expensive and slow.

Commercial adoption only became viable in the last 30 years or so as computing power increased, when applications were focused on workplace access control rather than payments. The real breakthrough came with smartphone integration. This began with fingerprint sensors on consumer devices, such as Apple’s Touch ID and Face ID, which are now extremely popular.

A Growing Ecosystem

A quick glance at the underlying trends reveals just how rapidly the ecosystem is now expanding. According to Juniper Research, for example, by 2028, the total in-store transaction value for biometric payments is expected to reach $1.2 trillion across 46 billion biometric-enabled transactions globally. While that’s already impressive, there is still enormous growth potential.

The problem is, adoption is starting to outpace trust. A recent study published by the Identity Theft Resource Center (ITRC), revealed that while nearly 90% of respondents had been asked to provide a biometric to verify their identity in the past year, nearly two-thirds expressed serious concerns about doing so. Moreover, 39% went as far as to say that the use of biometrics should be banned for both identity verification and/or recognition.

So, what can be done to close this trust gap and help ensure biometrics are used across fintechs as a more secure alternative to passwords and PINs? One area that requires more emphasis is consent-based design. Whereby users are given clear and revocable permission regarding how their biometric data is collected, stored, and used.

In practical terms, a consent-first design could resemble a digital wallet that provides users with clear, active choices regarding the use of biometrics. During setup, biometric authentication is optional and switched off by default. The app explains what data is collected, where it is stored and how to disable it later. During the payment process, all matching occurs locally on the device, rather than in a central database, and independent certification confirms compliance with data protection standards.

These processes must also be designed so they continue to act in the best interests of users. For example, consent should be viewed as an ongoing decision, rather than a one-time formality. Users must be able to revisit and change biometric permissions at any point and without difficulty. Settings should not be buried under layers of menus and options. They should be readily available so that users understand they are in control at all times.

Biometric Authentication

For example, if a user decides they no longer want to use biometric authentication in their payment app, they should be able to switch that functionality off with a single action. In these circumstances, the app immediately reverts to PIN or password authentication, so access isn’t disrupted. At the same time, any biometric templates held on the device are securely deleted.

If the user chooses to close their account entirely, the deletion workflow should extend to all associated data, so nothing is retained unnecessarily. Users should then receive a notification that their biometric identifiers are no longer stored.

Even these relatively basic processes can help put users in a much stronger position to understand and control the use of their biometrics. And don’t forget, this isn’t just a nice-to-have; it is increasingly a regulatory requirement issued by the EU and other authorities worldwide. GDPR is a good example, as it classifies biometric data as a special category of data and prohibits processing it unless explicit consent or another lawful basis applies.

Closing the Trust Gap

Let’s be in no doubt: trust (or the lack of it) is a real problem across the payments ecosystem. Including those organisations that rely on biometrics. In many current environments, a persistent trust gap, uneven implementation and mixed user experiences show that compliance alone does not guarantee confidence. Better progress now depends on practical execution, clear communication at the point of use, and systems that make data handling visible and auditable. Collectively, these processes can help reassure people that organisations are doing the right thing consistently and for the right reasons.

As a result, transparency and education are now key to improving confidence, ensuring users understand how their biometric data is protected and how they can stay in control. For many FinTechs, this requires a shift in mindset, where transparency is seen as a core product feature, rather than an afterthought or compliance tick box. With consent first design principles in place, users should be regularly reminded about where their biometric data resides and how to delete it.

Additionally, regular external audits or certifications help demonstrate accountability and ensure FinTechs operate to recognised standards. Granted, relatively few consumers are likely to study the fine details, but the act of being credibly audited is an important contributor to the way consumers build trust.

Trust as a Competitive Advantage

In these circumstances, trust can actually evolve into a competitive advantage. Transparent payment systems and processes will always face fewer adoption barriers, fewer customer complaints and possess stronger reputational resilience in the event of incidents. Ultimately, the more open and consistent the provider, the more users adopt and stay engaged. In markets where penetration is still low, a consent-first design and a focus on trust will reassure users that they will always remain in control of their data. Encouraging increased adoption of newer, seamless payment methods.

Regardless of how you look at it, the need for change is becoming increasingly urgent. Biometric payments are evolving beyond single-factor models toward richer, multimodal processes that introduce a combination of fingerprints, facial recognition, voice patterns and behavioural signals. As these capabilities mature, they will be applied in a wider variety of payment contexts, ranging from in-store to remote authentication and open banking apps.

This will only serve to heighten expectations around transparency and user control. In this environment, consent-first design does more than support regulatory compliance; it lays the foundation for future adoption by building systems that are flexible enough to accommodate new biometric methods without compromising user trust. As consumers become more digitally savvy and accustomed to a culture where switching between service providers is relatively easy, building trust in biometrics will contribute significantly to FinTech success.

Learn more at paynt.com

  • Cybersecurity in FinTech
  • Digital Payments

Author

Dan Brightmore

Published

Estimated Read time

5Mins

Marcin Glogowski, SVP Managing Director for Europe and UK CEO at Marqeta, on empowering businesses in the UK

FinTechs have long supported consumers, with the modern iteration of consumer innovations beginning in the UK in the early 2000s with the launch of the Faster Payments network in 2005. The first peer-to-peer lending platform started in the same year. And in 2007, the UK became one of the first markets to introduce contactless cards. Small and medium-sized businesses (SMB) lending and payment innovation has paled in comparison.

SMBs are the backbone of the UK economy, generating an impressive £2.8 trillion in revenue every year. Yet despite their critical role, they remain underserved when it comes to financial support. Only £62.1 billion in business loans were issued in the past year (45 times less than SMBs contribute to annual revenue) highlighting just how difficult it can be for SMBs to access the funding they need to grow. This funding gap limits not only individual businesses but also the wider economy that depends on their success.

While FinTechs have poured innovation into consumer products, revolutionising everything from budgeting apps to buy now, pay later (BNPL), SMBs have largely been left behind. This is despite the fact that SMB lending represents one of the fastest growing opportunities for financial organisations. 

A report earlier this year by Boston Consulting Group (BCG) highlights that we are on the cusp of a revolution not dissimilar to the one seen decades ago in mortgages, with technological advancements playing a key role. The demand for more efficient payments, smarter cashflow tools and flexible funding solutions is accelerating. Yet many businesses still find themselves navigating outdated systems and slow, manual processes.

The issue is not that SMBs do not see the value in modern financial tools. In fact, they are ready to invest. According to our recent Marqeta 2025 State of Payments report 90% of UK SMBs surveyed said they would pay higher upfront costs for tools that deliver long-term savings and efficiency. What SMBs really want is simplicity, speed and control. They are not emotionally invested in payments themselves – they are invested in running their businesses as efficiently as possible.

A striking finding from the Marqeta report reveals that nearly half (42%) of UK SMB owners still use personal cards to fund business expenses, citing higher credit limits and better rewards as the motivator behind this practice. This reveals an opening for payment solutions to meet businesses with credit solutions that are tailored and personalised to their specific requirements. Smart, data-driven underwriting models that look beyond traditional credit scores and reward businesses.

The SMB Payments Frontier

FinTechs have made great strides in improving financial experiences for individuals, but in doing so, may have missed the mark when it comes to understanding the unique needs of business owners. For SMBs, payments are not just a transaction. 

As Marqeta’s findings highlight, UK SMBs increasingly view payment tools as strategic assets rather than mere utilities. From social commerce trends to rewards programs and digital asset management, businesses are seeking solutions that actively contribute to the growth and efficiency of their organisations. Payment providers that offer real-time, flexible tools that reward customers for their engagement are best positioned to capture this rising demand and untapped potential.

Payments are the lifeblood of their operations, tied to cashflow, customer experience and long-term growth, with 52% of UK SMBs surveyed, as part of the State of Payment report, viewing payments as a tactical lever helping them streamline expenses, boost operational efficiencies, and free up cash flow. When payments work seamlessly, business owners can focus their energy where it matters most, serving their customers and growing their businesses.

Beyond payments alone, SMBs are looking for platforms that provide actionable insights and preventative measures that pre-empt major issues. Solutions that anticipate cashflow gaps, suggest repayment plans and automatically identify funding opportunities. The shift from reactive to proactive financial management offers SMBs a market advantage and, critically, represents a new dawn for how fintechs can support their growth.

Connecting the Dots

That is why bridging the gap between payments and funding represents such a powerful opportunity. Embedded Finance is already starting to move the needle, allowing SMBs to access credit directly through their payment platforms. This integration can transform payments from a passive process into an active growth driver. Imagine a world where a business processing card payments automatically receives insights into cashflow, credit opportunities or flexible repayment options tailored to its transaction history.

By combining real-time payment data with intelligent lending models, FinTechs can deliver funding at the point of need, not through laborious processes that may take weeks or months later. This kind of agility can make the difference between a business thriving or merely surviving. It also fosters financial resilience and trust, helping SMBs weather economic fluctuations with greater confidence in their suppliers and improved control.

Too often, the financial world can feel overly complex and fragmented for small businesses.  Many rely on multiple providers for banking, payments, invoicing and credit, creating a patchwork of tools that rarely communicate effectively. Fintechs now have the opportunity to simplify this landscape by creating connected ecosystems that serve SMBs holistically. The future lies in frictionless experiences that combine payments, insights and lending under one roof.

Riding the Payments Wave

For FinTechs, the message is clear. The next wave of financial innovation will be about empowering the businesses that keep the UK economy moving. With the right approach, payment platforms can deliver more than convenience. They can provide SMBs with the confidence, agility and financial durability they need to thrive in an uncertain world.

As SMB payments take flight, the question is not whether the opportunity exists, but whether fintechs are ready to power the future and support businesses as they navigate the new payments frontier.

Learn more at marqeta.com

  • Digital Payments
  • Embedded Finance

Author

Berkley Egenes

Published

15 December 2025

Estimated Read time

5Mins

Berkley Egenes, Chief Marketing & Growth Officer at Xsolla, on the future of frictionless payments in gaming and why convenience is king

From subscriptions to battle passes and in-game marketplaces, today’s video games are just as much about payments as they are about play. But with players now used to lightning-fast experiences, the way money moves in gaming is undergoing a dramatic shift. In this kind of space, one truth stands out: convenience is king.

In 2025, a slow or clunky payment experience can cost more than just a sale; it can cost a player. As global competition heats up, gaming companies are quickly realising the easier it is for someone to pay, the more likely they are to stay. 

Players Expect More Than Just Good Gameplay

Video games have come a long way from cartridges and cash registers. With the rise of mobile gaming, free-to-play models, and digital-first ecosystems, the way people pay and what they pay for has changed completely.

But something else has changed, too: expectations. Players now want to make purchases without stopping the game. No long card forms, no redirects, no confusing fees. Just a quick tap, swipe, or confirmation, and they’re back in the action. It sounds simple, but delivering that kind of seamless experience is anything but.

It’s no longer just about offering the right content; it’s about removing every hurdle between a player and their purchase. Whether it’s a new skin, currency top-up, or unlocking extra content, the process has to feel natural, safe, and crucially, fast.

Speed, Security, and Staying Power

When payments work well, we barely notice them. However, when they don’t, they stand out for all the wrong reasons.

In gaming, timing is everything. A player sees an offer in the middle of a boss fight, and they want to buy. Yet if they’re forced to pause, enter details, confirm identities, or troubleshoot errors, the moment is lost. Consequently, the sale disappears, and the player might even give up altogether. 

Security remains essential, of course. As digital fraud evolves, the challenge is building protections without creating extra friction. Gamers expect secure transactions, but they’re not willing to wait around for them. 

This is where payments innovation is starting to shine. Tools like tokenised credentials, biometric authentication, and invisible fraud detection are helping strike that delicate balance between trust and convenience. 

For game developers, reducing payment friction doesn’t just boost conversions; it also builds trust. A smooth first transaction can turn a casual user into a loyal player. It sets the tone for the entire relationship.

Why Global Games Need Local Solutions

Gaming is a global industry, but payments are still intensely local. What works for a player in California might not suit someone in Cairo or Jakarta, and this is where games can stumble. 

Enter Xsolla, a game commerce company that’s quietly powering payment backbones of some of the biggest games worldwide. Xsolla has only one goal: to make it easy for players to pay for the games they love, wherever they are. 

Xsolla supports 1000+ local payment methods across more than 200 countries and geographies, from mobile wallets in Southeast Asia to cash-based options in Latin America. This means players can use the payment tools they already trust, without currency confusion, hidden fees, or extra friction.

For developers, it’s a game-changer. Xsolla handles regional taxes, compliance, and localization, making global reach feel simple. The result is that more players complete purchases, higher conversion rates, and greater long-term retention.

In a global gaming world, going local is no longer optional – it’s essential. 

Embedded Payments are the New Normal

Imagine spotting a new item in a game and buying it instantly, without ever leaving the screen. No redirects, no passwords, no second devices, just one click and it’s yours. This is the point of embedded payments, and it’s quickly becoming the gold standard.

Rather than treating payments as something which only happens outside the game, developers are increasingly building them right into the experience. Whether that’s a virtual wallet, an in-game currency, or a checkout button inside the character menu, the goal is still the same: to make the payment feel like part of the gameplay.

It’s not just about a better experience for players; it also unlocks new possibilities for game economies. Players can trade items, gift content, or top up in real time, without ever breaking immersion.

Even more complex technologies like blockchain and NFTs are starting to be embedded in this way. Platforms like Immutable, for example, are working to make digital asset ownership feel as simple as buying a power-up, no crypto know-how required.

Web Shops: Gaming’s Direct Line to Players

A growing number of game publishers are launching web shops – standalone sites where players can buy in-game currency, cosmetics, or exclusive offers directly, outside traditional app or platform stores.

Why? It’s partly about revenue. Many major platforms can charge up to 30% in fees, but developers can offer better prices and keep more of the profits. 

It’s also about control. Web shops allow for tailored promotions, local pricing, loyalty rewards, and a wider choice of payment methods – all without platform restrictions. But the experience still matters: web shops must be fast, secure, and mobile-friendly to meet modern expectations. 

As regulations evolve, expect web shops to become a key part of the payment strategy – quietly reshaping how games are monetized beyond the app store.

The Future of Payments

Gaming is no longer just about graphics, storylines, or even community. It’s also about experience and that includes how players pay. Get the payment experience right, and you gain more than just revenue. You gain loyalty, trust, and longevity. Get it wrong and players won’t wait around for you to fix it.

Convenience isn’t just king, it’s the kingdom. In gaming, it might just be the most powerful weapon of all. 

Learn more at xsolla.com

  • Digital Payments
  • Embedded Finance

Author

Dan Brightmore

Published

26 November 2025

Estimated Read time

10Mins

Financial Services Director Arunkumar Gopalakrishnan on how Publicis Sapient is developing the playbook for delivering successful AI-led digital transformations across the financial services landscape

Publicis Sapient doesn’t sell tools; it delivers human-led, AI-enhanced solutions that blend proprietary platforms with deep industry expertise across global banking. The organisation is shaping the future of financial services by delivering complex digital transformations across continents – from the UK and Southeast Asia to the Middle East and the United States – anchored by a belief that true innovation lies at the intersection of business insight and technological depth.

Publicis Sapient utilises a SPEED philosophy – Strategy, Product, Engineering, Experience and Data. “For us, SPEED isn’t just a framework. It’s the way we align our capabilities to accelerate transformation,” explains Financial Services Director Arunkumar Gopalakrishnan. “My focus is the ‘P’ in that process – Agile Program Management and Product Management; helping clients move from vision to value at pace.”

Transformation at SPEED

During his time with Publicis Sapient, Arunkumar has seen the power of transformation at SPEED on a variety of high-stakes projects: helping a major UK bank launch a digital-only entity on the cloud; partnering with a leading Thai bank to revitalise its mobile-banking experience for a fast-growing, tech-savvy customer base; supporting a sovereign-funded startup bank exploring blockchain for trade finance in collaboration with Microsoft; building a holistic wealth-management platform for a large US custodian bank; and helping another lead the way in AI adoption. These are the type of innovation journeys where Publicis Sapient excels at moving from groundwork to exponential scale.

At the Intersection of Business and Technology

Publicis Sapient excels by fusing two disciplines often treated as separate. “We are at the intersection of business and technology,” explains Arunkumar. “You need deep business acumen to understand client challenges. However, you must have enough technical depth to engage meaningfully with engineering teams. That balance is what enables real problem-solving.”

From fraud prevention to blockchain and digital banking the industry is changing fast,” he notes. “Working with Generative AI today feels like standing on a new frontier. It keeps us on our toes, but it’s also what drives us – to stay relevant, deliver outcomes and connect both worlds of business and technology.”

Meeting the Challenge: Balancing Innovation and Risk

The biggest challenges facing financial services clients are not purely technological. They are structural and cultural. “Banks operate in complex regulatory environments,” notes Arunkumar. “There’s always a tension between innovation and risk management. On one hand, you want the next shiny thing; no one wants to be left behind in the technology race. On the other, you can’t bring something to life without going through the proper regulatory and risk-management controls.”

That balance defines the work Publicis Sapient does. “We are a people + product business,” he says. “Our strength lies in talented people, strong domain understanding, platforms, tools and a culture that says to clients: We have your back; we get it done.”

Many of the firm’s engagements, he explains, involve deep collaboration, experimentation and iteration. “Some of the use cases we take on aren’t easy. We work with partners, we research, we prototype, we unlearn and relearn. Progress in this space is continuous, not linear.”

A Digital Transformation Success Story

Publicis Sapient partnered with a large US Bank to lead digital transformation efforts focused on GenAI implementation and scaling. It worked in collaboration with Google and the Bank to design, build, and adopt GenAI to spur innovation, enhance risk management and improve productivity.

The high-level solution is composed of modular components including a secure GenAI Gateway for LLM access control, RAG framework for contextual retrieval, and Vertex AI integration leveraging Gemini models for high-quality natural language responses.

Delivering the Solution

The solution delivered integrated, repeatable accelerators designed to solve the central business challenges of speed, risk, and control from the ground up.

Publicis Sapient’s Financial Services Director Arunkumar Gopalakrishnan explains how the platform was built upon some core pillars:

Unified LLM Access & Model Context Protocol: “We streamlined the model consumption layer with a foundational gateway, built on a resilient Model Context Protocol (MCP). The MCP acts as an essential abstraction layer, ensuring all data streams, model inputs, and application requests are managed consistently, securely, and in compliance with governance rules.”

Integrated Governance & Security: “We implemented a ‘shift-left’ security approach, embedding continuous guardrails directly into the GenAI pipelines. This pre-processing step, coupled with adversarial testing, proactively minimizes human error, reduces operational risk, and ensures a continuous, audit trail.”

Proprietary Knowledge Grounding (RAG): “The platform enables the Retrieval-Augmented Generation (RAG) pattern. This involves securely indexing the bank’s vast internal repository of operational knowledge and compliance guides – by using this verified knowledge to ‘ground’ LLM responses, the platform ensures every AI output is based on the bank’s accurate, proprietary data. This successfully mitigates factual errors, minimizes hallucination risk, and protects brand integrity.”

Agent Orchestration (Agentic AI): “Moving beyond simple chat, the platform includes capabilities for managing Agentic AI workflows which greatly improves efficiency. These agents are goal-directed systems that execute multi-step business processes (e.g., investigating a service ticket, performing patching operations etc. with human-in-loop for oversight). This is the crucial layer for end-to-end automation of complex, cross-functional tasks.”

Unified Observability: “The final pillar establishes a system for tracking crucial metricstied to defined business outcomes. This enterprise-level observability framework captures data like response latency, quality, consumption rates etc. This data allows leadership to continuously monitor output quality and reviewing against the standards of accuracy and trustworthiness.”

Realising the Benefits

The positive impact of the work Publicis Sapient is doing includes:

Scalable Framework: Designed as a Platform-as-a-Service (PaaS) model to support future GenAI use cases across the enterprise; agent-driven extensibility enables enhancements with rapid time-to-market deployments.

Accelerated Onboarding: Automates the provisioning process by surfacing relevant documentation, policies, and procedures instantly.

Knowledge Reuse: Leverages existing enterprise knowledge bases to reduce redundancy and improve consistency.

Building with Purpose: From Vision to Scale

At the heart of Publicis Sapient’s transformation philosophy is its Digital Business Transformation Framework. Teams use a playbook to take clients from problem definition to scaled delivery. “It starts with Ignite – understanding the problem and bringing in strategic expertise,” explains Arunkumar. “Then comes Hunt & Shape – identifying and defining value, mapping MVPs and roadmaps. And finally Build & Scale – turning ideas into outcomes by building the right solutions.”

Scaling, he insists, is not only about size but certainty. “You don’t scale right away. You start small – proofs of concept, limited users, experiments and learn fast. Once you know what works, you can accelerate.”

He points to a current AI engagement as an example. “We started with one application hosted on the platform last year. Now we have twenty-plus, and many more coming. Building the foundation took months, but once we understood the landscape, everything else became a fast follower. You develop a playbook, you know the risks, and then it’s about momentum.”

Generative AI: A Catalyst for Reinvention

Few technologies have captured the imagination of financial services like Generative AI. Arunkumar sees its impact as both profound and pragmatic. “While business leaders talk about productivity gains, CIOs are using GenAI to drive measurable productivity and cost efficiency by modernising high-friction IT Service Management processes,” he notes.

Publicis Sapient identifies three areas where the shift is most visible:

  • Enhanced self-service: Intelligent Virtual Assistants act as the first line of defence. They automate a big chunk of initial inquiries, freeing human agents and improving response times.
  • IT-agent augmentation: GenAI synthesises ticket histories, diagnoses root causes and drafts expert-level resolutions. It drastically shortens the mean time to Resolution for critical incidents.
  • Developer velocity: Secure, context-aware coding assistants are improving efficiency, allowing engineers to focus on high-value work.

Each example reflects a practical application of AI – not hype but measurable productivity and cost efficiency.

The Rise of Agentic AI

Publicis Sapient’s next frontier is Agentic AI, where intelligent agents move beyond analysis to orchestration and action. Teams have been testing these systems within IT service environments for major banks. “We started with a simple knowledge-search application,” he recalls. “It consolidated information across multiple systems to provide accurate, high-performance answers.”

From there, Publicis Sapient expanded into process automation. “Imagine an IT engineer under pressure to fix issues fast,” he says. “The knowledge-search tool becomes a force multiplier, identifying root causes instantly. Next, you automate the actions – patching servers, routing tickets, escalating tasks – with a human in the loop for control.” The goal is productivity gains with safety.

Challenges remain – particularly model drift and AI hallucination – but these can be mitigated with rigorous evaluation frameworks. “AI is probabilistic, not deterministic,” says Arunkumar. “You can’t expect one-plus-one to always equal two. That’s why continuous grounding, validation and human oversight are key.”

Innovation in Action: Real-World Use Cases

For Arunkumar, the most exciting part of AI transformation lies in the unexpected. “Some of the best use cases aren’t flashy but support everyday processes that, when optimised, deliver outsized value.”

He describes one example from a banking client: improving the reliability of customer statements. “A bank may send hundreds of thousands of daily communications – statements, notifications, alerts. Sometimes statements fail to send, and by the time customers notice, the issue snowballs into reputational risk.”

AI, he notes, can detect these failures proactively. “If a statement isn’t generated by 7 a.m., the system flags it very soon and resolves it before customers even notice. Predictive AI identifies the anomaly; GenAI drafts the corrective communication for review. It’s small, but it saves time, cost and reputation.”

Such “mundane” use cases, he argues, are where the real transformation happens. “Everyone talks about the big, shiny things. But in complex, regulated environments, it’s the subtle automations that drive consistent outcomes.”

Platforms for the Future

Publicis Sapient’s investment in AI platforms underscores its commitment to innovation. Arunkumar highlights three in particular:

  • Bodhi, the foundational system for building intelligent agents
  • Slingshot, designed to accelerate software-development lifecycles
  • Sustain AI, focused on IT service management and operational resilience

“These are our three-pronged approach to transformation,” he explains. “Each builds on the other – Bodhi as the foundation, Slingshot for velocity, and Sustain AI for long-term stability. And there’s more in the pipeline…”

Culture, Collaboration and the Power of Small Wins

For all the technology involved, Arunkumar insists transformation ultimately depends on people. “In any transformation, you work with stakeholders who have competing priorities,” he says. “The key is to focus on agreements first – find small wins and move forward. Progress builds trust.”

Publicis Sapient is a people + product business where Arunkumar encourages his teams to balance ambition with empathy. “If a meeting is contentious, end with one thing agreed. Take the rest next time. Transformation isn’t about forcing alignment; it’s about building it. We tell our clients, and our teams, ‘We have your back’. That trust is what makes complex programs succeed.”

Looking Ahead: Building Expertise and Depth

The focus for 2026, and beyond, is on cultivating deep, dual-disciplinary expertise. “Our teams sit between business and technology,” he explains. “You must be good at both. No one can master all financial services, it’s too vast, but you can specialise. Pick a niche within key areas – asset management, wealth, retail banking, corporate banking, payments, financial crime – and become excellent at it.”

At the same time, he urges his teams to stay curious about technology. “Even if you’re not implementing solutions yourself, you need to understand them and speak the same language as engineers and architects. That’s how collaboration works.”

Continuous learning, he believes, is non-negotiable. “There’s so much information out there – training, communities, conversations. We just need to channel it, understand the basics and keep moving forward.”

Transformation: A Continuous Journey

At Publicis Sapient transformation is never static. “We don’t fix something once and move on,” he says. “We think, test, learn, and build again. You must define the real problem before you solve it, validate your progress and inspire others to see the vision.”

Purpose and persistence turn complexity into clarity for Publicis Sapient’s clients. “The journey is continuous,” says Arunkumar with characteristic calm. “But that’s what makes it exciting. Every challenge is an opportunity to learn, collaborate and move forward – one small win at a time.”

Find out more at publicissapient.com

  • Artificial Intelligence in FinTech

Author

Dan Brightmore

Published

2 October 2025

Estimated Read time

3Mins

Plumery’s expansion, collaborating with Vancouver-based Aequilibrium, brings specific Canadian market capabilities to support credit unions delivery of personalised, compliant, and elevated member experiences

Plumery, the digital banking experience platform, today unveiled Canada-specific features and integrations giving Canadian credit unions a clear path to deliver personalized, compliant, and modern digital banking experiences.

Canadian financial institutions are facing heightened customer expectations, stiff competition from FinTechs, and growing pressure to modernise legacy systems. These pressures have been amplified by Central 1 Credit Union’s announcement that it will wind down its Forge (formerly MemberDirect) digital banking platform. The system, until recently, served over 170 credit unions across Canada.

This represents both a risk and an opportunity for credit unions. They must now plan for a replacement quickly, and also have the chance to adopt a platform that gives them greater control and the ability to compete on user experience.

The collaboration with Aequilibrium, with their deep knowledge of the Canadian regulatory landscape and user experience design ensures Plumery’s Canadian-ready platform is built around how Canadians, especially credit union members, expect to bank.

Though Canada’s banking sector is among the most advanced globally, many credit unions are held back by outdated infrastructure.

Plumery Tailored for Canadians

Meanwhile, members are demanding hyper-personalised, mobile-first and intuitive digital journeys. To meet these needs, Plumery has localised its platform with out-of-the-box features tailored for how Canadians bank. These include:

  • Everyday payments and transfers such as bill payments, cheque deposits, and Interac e-Transfers.
  • Support for Canadian savings and lending products including GICs, mortgages, and student loans.
  • Business banking capabilities like bulk payments and payroll management.
  • Compliance and user experience features including bilingual English/French support, privacy and data residency adherence, and accessibility standards.

Ben Goldin, CEO & Founder of Plumery, said: “With Forge winding down, Canadian institutions have a rare opportunity to modernise on their own terms, rather than being tied to outdated systems. Our platform provides an immediate, future-ready option that puts control back in the hands of credit unions. By working with Aequilibrium, we are combining global banking innovation with local expertise to deliver experiences that meet the unique needs of Canadian credit unions’ members.”

Plumery’s Canadian-ready platform is available now, and the company is already in discussions with multiple credit unions evaluating their digital futures beyond Forge.

About Plumery

Headquartered in the Netherlands, Plumery has a mission is to empower financial institutions worldwide, regardless of size, to craft distinctive, contemporary, and customer-centric mobile and web experiences.

Plumery operates with a diverse team that embodies a unique combination of seasoned expertise and vibrant innovation. This blend has been cultivated through years of experience at start-ups, scale-ups, and established financial institutions, and most notably at globally leading financial technology companies, where they were instrumental in creating disruptive digital banking solutions and platforms that now serve 300+ banks globally. 

Plumery’s Digital Success Fabric platform provides banks with the foundation for success beyond fast-time-to-market by expediting the development of their digital front ends while significantly cutting costs compared to in-house initiatives or solutions with high total cost of ownership (TCO).  

About Aequilibrium

For over 13 years, Aequilibrium has supported small to large-sized credit unions globally, helping them modernize their digital banking, elevate their training practices through VR + AI, and create member-first experiences that leave a lasting impression. They simplify technology, co-create strategies, and deliver personalised experiences that enrich people’s lives.

  • Digital Payments
  • Neobanking

Author

Toine van Beusekom

Published

22 September 2025

Estimated Read time

4Mins

Toine van Beusekom, Strategy Director at Icon Solutions, on embracing a transformation strategy for payments

For banks, change is no longer something they can simply let happen. They need to make it happen.

This marks a significant shift from the past decade, where the demands of complying with major regulatory initiatives – such as the migration to ISO 20022 in combination with support for instant and cross-border payment schemes – prompted action above all else. This is unsurprising, as you really don’t want to mess with regulators and miss imposed deadlines.

But as a defining regulatory era starts to wind down, things stand to be much different. Without the next deadline looming to provide direction, suddenly the road ahead feels more uncertain.

This is a good time for banks to step back, take a hard look at the current state of their payments ecosystem, and ask themselves some honest questions. Have regulatory requirements been addressed as part of a strategic approach to transforming the infrastructure to realise long-term business value and competitive differentiation? Or have they been barely met by short-term fixes, workarounds, gaffer tape and hope?

For most banks, it is likely more the latter than they would care to admit. And this has huge implications as they look towards meeting the demands of the future.  

Are Banks Truly Ready For ISO 20022?

ISO 20022 migration, which has largely dominated the change agenda over recent years, is a perfect illustration. After years of work and investment, banks should now, in theory, boast a modern payments ecosystem capable of high-performance, real-time ISO 20022 processing. Yet the reality is that many still possess fragmented and complex estates that rely on various individual processing engines for different payment types, with an ISO 20022 mapper used around the edges to support low real-time volumes. This means that, despite huge investments, banks may find themselves unprepared as ISO 20022 volumes start to ramp up.

Now comes the big problem – which extends far beyond ISO 20022. Using the regulatory agenda as a pretext for securing more budget to pay down the existing technical debt and patch a solution is no longer the failsafe option it once was. Instead, addressing the challenges now relies on the much harder work of building a compelling and viable business case for change.

Consolidation: Spend Less Money. Make More Money. Don’t Go To Jail

Happily, there is a way to finally break free of the constraints of outdated, legacy infrastructure: consolidation. In fact, any bank in the business of processing payments should now be looking to work towards a single, consolidated infrastructure capable of supporting any payment, anytime, anywhere. 

The business case for consolidation is clear, as it is foundational to the three key pillars of any transformation strategy. Banks spend less money by using standardised and open technologies to realise scale economies and lower the cost per transaction. They make more money as it is far easier to bring new products to market quickly or deliver value-added services. Finally, and with resiliency and compliance in the spotlight amid high-profile outages and geopolitical manoeuvring, they avoid jail through increased performance and transparency.

A Smarter Approach To Consolidation

The key question then becomes how to consolidate. 20 years ago, ‘consolidation’ meant a big bang, a years-long transition programme to a black-box payments hub costing hundreds of millions and leaving banks entirely reliant on a single vendor. Unsurprisingly, all these projects failed at Tier 1 banks. Yet the significant challenges of building entirely in-house have also been laid bare in recent times by well-documented project overruns, never realised benefits and blown budgets.

Today, we are seeing a new approach. To stay in control of their costs, build and risk, banks are increasingly turning to leverage flexible payment development framework solutions that allow them to sustainably move towards a consolidated payments processing infrastructure.

Success here demands a clear strategy outlining why transformation is needed, what ‘good looks like’ in terms of the target state, and finally how to actually get there. Guided by this blueprint, banks can then leverage a feature-rich development framework to reimagine the payments processing value chain – moving away from a horizontal end-to-end approach for single payment types and towards decoupled, vertical, bespoke, service-aligned flows.

This progressive, gradual approach to transformation helps to realise immediate benefits that compound over time as more flows migrate over, while enabling banks to meet the requirements of new payments types, clearing and settlement methods, markets and use-cases as they emerge.

Lead Payments Forward

Looking more broadly, consolidation represents a chance to finally end the cycle of short-termism and reactivity that has for so long inhibited and disincentivised meaningful, strategic change and contributed to huge technical debt. For the first time in decades – perhaps ever – banks have an unmissable opportunity to take control, transform on their own terms and truly lead payments forward. But can they recognise and seize the moment amongst all the noise and hype?

Learn more at: https://iconsolutions.com/

  • Digital Payments
  • Embedded Finance
  • Neobanking

Author

Kenan Maciel

Published

7 July 2025

Estimated Read time

5Mins

Kenan Maciel, Director of Strategy at Lab49, on the future for cross-border payments in the global push for instant settlement

Cross-Border payments are the unseen infrastructure powering global commerce. A multinational corporation settling international invoices, a small business sourcing products overseas, or a family transferring remittances across continents… The global economy has relied on the seamless movement of money across borders for decades. Now, with the total value of cross-border payments estimated to increase from almost $150 trillion in 2017 to over $250 trillion in 2027, it’s clear just how fundamental they are to the future of the global economy.

However, despite their scale and importance, cross-border payments remain plagued by inefficiencies and high costs. High transaction fees, slow settlement times and a persistent lack of transparency have consistently challenged businesses and consumers. The Financial Stability Board, responsible for the G20 Roadmap for Enhancing cross-border payments, has acknowledged that “significant progress will be needed to meet the targets” this year. This statement highlights the reality of the industry as it stands. While the need for better infrastructure is widely recognised, the pace of change is unsteady.

A Landscape of Legacy

For decades, cross-border payments have relied on an established set of mechanisms: banks, credit card networks and money transfer operators. Traditionally, the biggest facilitators of cross-border payments have been the platforms established by major banks and governments like SWIFT, SEPA and CHIPS. These systems have served their purpose but are increasingly ill-suited to the demands of modern commerce. More recently, traditional card networks such as Visa, Mastercard and American Express have expanded their role in this space, capturing an ever-growing share of the cross-border market by offering relatively faster and more integrated solutions than conventional bank transfers.

In recent years, the emergence of new technologies has begun to reshape the landscape, helping to expand the growth of cross-border payments. DLTs, stablecoins and CBDCs offer the promise of faster, more secure, transparent and cost-effective payments compared to traditional methods. While the overall volume of cross-border payments handled on blockchain is still a fraction of the global market, its growth trajectory is significant. BVNK, for example, estimates that stablecoin payments alone could represent a $60 trillion opportunity in the next five years.

The Problems Persist

Still, challenges persist. The cross-border payment model is weighed down by high fees from traditional facilitators often driven by currency conversion charges, intermediary bank costs and compliance related expenses form different regulatory jurisdictions. Often, a single payment is subject to multiple checks and validation, each requiring different sets of data, which not only slows down processing times but also increases operational complexity. FX risks and associated high funding costs further complicate the picture. Banks are often required to pre-fund transactions in destination currencies to enable timely settlement, resulting in high funding costs and the need to hold capital that could be more productively deployed elsewhere.

A lack of transparency further compounds these issues. For many businesses, understanding the total cost of a transaction, and tracking its progress, remains frustratingly difficult. Information about fees, exchange rates and settlement times is often fragmented and inconsistent, further increasing uncertainty and risk.

What’s Changing?

Nevertheless, meaningful change is underway. One area seeing rapid development is FX hedging. Companies are increasingly making use of forward contracts and options to manage currency risk, while fintechs are leveraging smart contracts and decentralised finance platforms to automate FX conversion, improving both cost efficiency and predictability. The introduction of ISO 20022 and the looming November deadline, means that a global standard for financial messaging is inching closer. By standardising electronic data interchange between financial institutions, it promises to reduce friction and facilitate faster, more accurate payments.

Another encouraging development is the expansion of central banks’ instant payment infrastructures. For example, Fed Now in the US, Faster Payments in the UK, and SEPA Instant in the EU operate around the clock, offering real-time, 24/7 settlement. These developments mark a significant departure from traditional systems like standard SEPA which typically settle over two business days and only during working hours. While the cost of using these instant infrastructures is often higher, the benefits in terms of speed, transparency and availability offer a compelling improvement. Their growing presence is helping to set new expectations for what’s possible in domestic and cross-border payments.

With DLTs and stablecoins also gaining traction as credible alternatives to traditional methods, the industry is also moving closer to near instant global settlement and the ability to operate 24/7. A significant improvement over the lengthy settlement times and limited operating hours of legacy systems. Although, mainstream adoption still faces hurdles, with one of the primary challenges being convenience and usability. For many uses, managing digital wallets and understanding decentralised systems remains unintuitive, limiting adoption outside of extremely digital literate circles.

Who’s Leading the Charge?

Importantly, it is no longer just FinTechs and startups leading the charge. Traditional financial institutions are actively investing in digital asset infrastructure. Visa’s tokenised asset platform and the Bank of America’s plans for a proprietary stablecoin are prime examples of how legacy players are adapting. Institutions like these are often helping to define the future of cross-border payments.

The industry stands at a turning point, on the cusp of achieving the required speed, cost, transparency and access for the global economic future. With ongoing technological innovation and evolving regulatory frameworks, the path is becoming clearer. However, the nature of global finance means that no single approach will dominate. Different payment models require different tools, and the most effective solutions will be those tailored to specific needs and truly fit for the modern financial ecosystem.

  • Digital Payments

Author

Sejal Mehta & Wendy Di Blasio

Published

30 June 2025

Estimated Read time

4Mins

Sejal Mehta and Wendy Di Blasio from Odgers Berndtson’s Global FinTech and Financial Services Practices, discuss new leadership demands in a rapidly evolving cross-border payments space

The global landscape for cross-border payments is at an inflection point. It is driven by rapid technological advances, evolving regulatory frameworks, and shifting consumer expectations. With Asia emerging as a hub of growth, particularly in countries like China, India, and Singapore, the industry is projected to soar to $23.8 trillion by 2032. This represents over one-third of global transactions.

Yet, this significant growth introduces complexity. Challenges in interoperability, regulatory divergence, and varying regional consumer behaviours make effective leadership indispensable. In such an environment, strong executive leadership not only manages but proactively shapes these transformations.

A New Leadership Mandate in Cross-Border Payments

Today, successful leadership in cross-border payments requires much more than operational effectiveness or market penetration. Modern executives must adeptly manage uncertainty, anticipate disruption, and drive transformation at scale.

Visionary leadership is paramount. Executives need to foresee industry trends, understanding key initiatives such as Project Nexus. This aims to integrate real-time payment systems across Asia, enhancing transaction speed and seamlessness.

Strategic agility is equally critical. Given volatile geopolitical dynamics and fluctuating financial flows, leaders must skilfully balance immediate demands with long-term goals. The capacity to make informed, data-driven decisions amid complexity is now a hallmark of effective leadership.

Cultural competence also defines leadership excellence. Executives must nurture inclusive, agile teams that can navigate diverse cultural contexts and regional expectations. Emotional intelligence, cultural sensitivity, and the ability to effectively lead multicultural, distributed teams are no longer optional. These are essential leadership competencies.

Navigating Regulatory Complexity with Strategic Foresight

Managing regulatory fragmentation across jurisdictions is a significant challenge for leadership in the cross-border payments space. Countries continue to implement and update localised rules around data protection, anti-money laundering (AML), and financial compliance. Executives are under increasing pressure to ensure both global consistency and local compliance.

This environment calls for a nuanced understanding of international law, regional policy developments, and collaborative regulatory frameworks. Successful leaders are those who build strong regulatory partnerships, anticipate changes in legal landscapes, and embed compliance into the strategic DNA of their organisations.

For instance, responding to initiatives like ISO 20022, which standardises financial messaging formats, requires more than technical adaptation. It demands coordinated leadership across compliance, operations, and technology functions. By staying ahead of these shifts, executives not only minimise risk but can unlock new efficiencies and competitive advantages.

Several emerging trends are reshaping leadership in cross-border payments, significantly influencing how companies approach talent development and executive roles.

Intergenerational leadership has become a priority as Millennials and Gen Z increasingly dominate the workforce. These groups value purpose, flexibility, and impactful work, disrupting traditional loyalty structures. Today’s leaders must actively foster collaboration and unity across diverse age groups, aligning teams around shared ambitions like innovation, sustainability, and inclusivity.

The fluidity between traditional financial institutions (TradFi) and FinTech organisations is increasing noticeably. Executives moving between these spheres bring invaluable cross-sector expertise, methodologies, and perspectives. This intersection demands leaders who can seamlessly bridge legacy systems with innovative technologies, balancing stability with innovation.

Consequently, organisations are more frequently leveraging tools like psychometric assessments to identify crucial leadership attributes such as adaptability, resilience, and learning agility. These assessments are increasingly applied not only to senior executives but also to non-executive board members, helping firms strategically future-proof their leadership capabilities.

Cultivating Leadership Through Development and Succession Planning

Effective leadership development strategies have become critical as companies scale operations and navigate ongoing technological and geopolitical changes. Organisations cannot solely rely on external hires. They must cultivate internal talent pools prepared to address future challenges.

Forward-thinking companies are investing in targeted leadership programmes, mentorship opportunities, and rotational assignments designed to expose emerging leaders to diverse operational complexities. These practices strengthen organisational resilience, encourage internal innovation, and foster adaptability among leadership ranks.

Strategic succession planning further enhances organisational robustness. Rather than responding reactively to sudden leadership gaps, high-performing companies proactively identify, and nurture promising talent. This approach requires upskilling the leaders by providing them with a strategic understanding of newer technologies, data models and associated risks.

Leadership as the Cornerstone of Competitive Advantage

In the rapidly evolving cross-border payments landscape, leadership quality will ultimately distinguish market leaders from followers. As regulatory pressures intensify and technological advancements continue to reshape the industry, effective leadership is pivotal to turning complexity into growth opportunities.

By committing to leadership development, strategic executive recruitment, and aligning talent management with overarching business objectives, organisations position themselves for resilience and sustained success. The right leaders will not only navigate challenges but leverage them into lasting competitive advantages, transforming vision into tangible market value.

  • Digital Payments

Author

María Ávila Silván

Published

23 June 2025

Estimated Read time

4Mins

María Ávila Silván, CRO at PagoNxt Payments, on the future of B2B payments and why digital-first providers are best positioned to lead

Despite long-standing claims that ‘cash is dead’, it continues to solve three distinct business problems for payments – immediacy, certainty, and accessibility.

Now, however, with the European Parliament’s decision to cap cash transactions at €10,000 by 2027, businesses who rely on these attributes are facing a turning point. Where cash is no longer a viable foundation for business operations, and digital is no longer optional. While positioned as an anti-money laundering measure, this regulation’s most profound impact will be catalysing the final stage of payment digitisation across European commerce. For banks and payment providers, this represents a compliance challenge. And a strategic opportunity to extend digital payment ecosystems.

The benefits of this acceleration towards digital payments are substantial. Over the past two decades, we’ve seen digital transactions offer enhanced traceability, providing both compliance benefits and improved financial visibility. In addition, they reduce the security risks and insurance costs associated with holding and transporting physical currency. Automated reconciliation capabilities eliminate countless hours of manual processing, while the granular data available from digital transactions generates treasury insights once thought impossible in the cash era. The operational efficiency gains alone can transform finance functions into the strategic enablers of enterprises.

That said, the shift isn’t straightforward. Those serving cash-intensive sectors must develop solutions that deliver the same immediacy businesses expect. This requires reimagining payment workflows entirely.

Human-Centric Design

The €10,000 cash limitation creates distinct challenges for businesses. Consider construction companies paying contractors on completion, or wholesale distributors accepting immediate payment upon delivery. Both will face disruption to established operational rhythms. Neither are inconveniences, but touch core business relationships where immediate exchange has built trust and operational predictability.

The digital alternatives now mandated by the EU must address human factors alongside technical capabilities. The reluctance to entirely abandon cash often stems from well-grounded concerns about digital payment accessibility, complexity, and reliability. Systems requiring multiple authentication steps, specialised hardware, or stable internet connectivity create friction points that cash simply doesn’t have. Any viable alternative to cash must address these barriers through education, simplified experiences, and demonstrable security. This is on all of us to address, and doing so must be viewed as a transformation journey rather than a compliance exercise. This means engaging clients early and understanding their specific operational concerns. We need to develop tailored pathways that address both the technical and cultural dimensions of payments change.

Matching the Core Strengths of Cash

As stated earlier, the greatest virtue of cash has always been its immediacy. You hand over notes, you receive goods or services. This represents a real-time transaction with instant settlement certainty.

Digital payment systems have historically struggled to match this attribute, introducing settlement delays and reconciliation challenges that create operational friction. That is, until now. The SEPA Instant initiative addresses this gap directly, enabling settlement within seconds rather than days. Yet despite these benefits, adoption remains inconsistent, with fewer than 5% of European banks currently maintaining the robust infrastructure needed to fully support these capabilities. The cash cap now creates a powerful incentive to hasten the speed, particularly for institutions serving affected sectors.

Real-time payment infrastructure delivers the immediacy businesses need. When combined with enhanced data capabilities, it creates a far superior experience to cash across multiple dimensions. A contractor receiving instant payment via their smartphone gains the same immediacy as cash while obtaining automatic documentation, tax records, and payment history. A wholesaler accepting immediate settlement receives not only funds but also structured invoice data that automates reconciliation and inventory updates. The possibilities are limitless.

Building these capabilities requires substantial investment and specialisation. Institutions must manage increasing compliance demands while simultaneously accelerating their technical capabilities. This is a challenging combination even for well-resourced organisations.

Scalable Solutions for a Complex Payments Transition

The complexity of replacing cash transactions varies significantly across different business contexts and sectors. A unified, scalable approach becomes essential for financial institutions serving diverse client bases. Payment-as-a-Service (PaaS) models excel in this environment by providing configurable solutions that can adapt to sector-specific requirements while maintaining consistent compliance frameworks.

Modern PaaS platforms deliver orchestration capabilities that manage the entire transaction lifecycle from initiation through compliance screening to settlement and reconciliation. This approach meets evolving AML requirements while delivering the real-time payment capabilities businesses require. Such a combination addresses both sides of the cash replacement equation – meeting regulatory demands while maintaining operational efficiency for end users

The EU’s €10,000 cash transaction limitation marks a defining moment in European payment evolution. It creates both challenges and opportunities – forcing reconsideration of established approaches while enabling enhanced capabilities. Financial institutions have a unique opportunity to deliver solutions that preserve cash’s operational benefits while introducing new dimensions of intelligence, integration, and experience. In turn, there is a golden opportunity to create payment ecosystems that are more transparent, efficient, and valuable for all European businesses.

  • Digital Payments

Author

Nick Saywell

Published

11 June 2025

Estimated Read time

4Mins

Nick Saywell, Senior Manager at PSE Consulting, on the rise of account-to-account payment

With Apple and Android both unlocked, can account-to-account payment finally rival cards at the checkout?

For years, account-to-account (A2A) payment providers have dreamed of bringing their low-cost, real-time model to the in-store experience. But one key problem kept getting in the way: the experience wasn’t seamless enough to challenge the tap-and-go ease of cards. That may be about to change.

In mid-2024, the European Commission struck a landmark deal with Apple, forcing it to open access to the iPhone’s NFC chip to third-party payment providers. With both Android and iOS now unlocked, a door has opened that could finally give A2A wallets a shot at real parity with cards — and give merchants and consumers a meaningful alternative to the traditional payment rails.

The race is on. But can A2A deliver?

A2A Payments, Rebooted

A2A in-store payments have technically been possible for some time. But the experience has often fallen short, marred by clunky QR codes, awkward authentication flows, and too many screens. Consumers, spoiled by contactless cards and mobile wallets, weren’t interested in waiting even a few extra seconds.

Now, with tap-to-pay functionality available on all major devices, A2A apps can finally offer what was missing: frictionless in-store payments that rival the card experience. And with that, the real advantages of A2A — faster settlement, lower fees, and direct-to-bank transfers — are no longer hidden behind usability issues.

The question is no longer “can they?” It’s “how far can they go?”

The Contactless Advantage

In-store, speed is everything. In markets like the UK, where 93% of card payments are contactless, expectations are sky-high. For A2A wallets to compete, tap-to-pay is the bare minimum – and until now, it simply wasn’t available on iOS.

That changed in December 2024, when Vipps MobilePay launched the first-ever A2A tap-to-pay solution on iPhone, enabling “Tap with Vipps” at stores across Norway. With expansion plans underway for Denmark, Finland, and Sweden, the Nordic region is quickly becoming a proving ground for A2A in-store dominance.

Other markets are following – and fast. Sweden’s Swish has moved from Bluetooth to NFC for Android tap-to-pay. Bizum, used by over half of Spain’s population, is rolling out “Bizum Pay”, enabling A2A and card-linked tap payments later in 2025. In Poland, where Blik already dominates eCommerce, the company is planning iOS tap-to-pay integration this year.  

Crucially, these aren’t just tests or pilots — they’re market-ready rollouts. And they show that the A2A space is no longer content to sit in the shadow of cards.

The Big Economies Lag Behind

However, not everyone is moving at the same speed.

Despite the momentum in Scandinavia, Spain, and Poland, Europe’s biggest economies have been slower to act. The UK has yet to see a major A2A wallet gain traction in-store. In Germany and France, legacy infrastructure and conservative adoption curves are proving hard to shake.

Even Wero, the pan-European A2A wallet backed by the European Payments Initiative, won’t have an in-store solution ready until 2026. That delay risks leaving Europe’s largest markets outpaced by smaller, more agile neighbours — at a time when merchants and consumers alike are increasingly open to change.

For now, it’s the early movers who are defining the space — and setting expectations.

The Cross-Border Payment Battle

While domestic progress is promising, cross-border A2A remains the next big challenge. Regional alliances are forming — including:

  • EuroPA: A partnership between Spain’s Bizum, Italy’s Bancomat Pay, and Portugal’s MB Way, which completed its first cross-border transaction in late 2024.
  • EMPSA: An alliance including Bancomat Pay, Switzerland’s Twint, and Austria’s Bluecode, focused on cross-border interoperability.

But the road ahead is bumpy. Without a unified European solution, A2A risks becoming fragmented — more complicated for consumers, and harder to scale. Some argue that Wero offers the long-term answer. But in the short term, it’s up to these alliances to prove cross-border A2A is more than a theory.

The pressure is on to prove that A2A can work as well across borders as it does at home — without sacrificing simplicity or reliability.

The Moment of Truth for A2A Wallets

This isn’t just a technical breakthrough — it’s a power shift. For the first time, A2A wallets are competing with cards on the one thing that mattered most: convenience. With NFC access now universal, and major players moving fast, the old excuses no longer apply.

Whether A2A becomes the new default or remains a challenger brand depends on what happens next. Can providers scale fast enough? Can they deliver the reliability, UX, and trust that card payments have built over decades?

One thing’s clear – 2025 will be a crucial year in the battle to redefine Europe’s payment scene, and a new offensive to win in-store transactions is just starting.

About PSE Consulting

PSE Consulting is a leading global provider of payment advisory services to players across the payments landscape. PSE’s expertise has enabled it to deliver actionable market insights and operational optimisation to senior payments leaders for over 30 years. Find out more here.

  • Digital Payments

Author

Dave Murphy

Published

2 June 2025

Estimated Read time

4Mins

Dave Murphy, Head of Financial Services EMEA & APAC at Publicis Sapient, on unlocking data to unleash the intelligence with AI

In today’s financial services landscape, the promise of artificial intelligence is everywhere… Hyper personalisation, intelligent automation, real-time insights, and AI-assisted customer experiences. But here’s the truth: AI doesn’t run on ambition. It runs on data.

If your customer and transactional data remains locked inside monolithic core systems, even the most sophisticated AI will underdeliver. The most effective path to AI-powered transformation isn’t a complete rebuild of your core – it’s strategic decomposition. By making high-quality data available in near real-time to your channels and platforms, banks can unlock AI’s full potential without overhauling their entire architecture.

At Publicis Sapient, we believe unlocking your data is the critical enabler for harnessing the full value of AI across the financial enterprise. It is no longer necessary to completely rebuild your core infrastructure. Instead, what’s required is strategic decomposition of monolithic systems to ensure near real-time data availability to your channels and AI applications.

The Data Access Conundrum

Banks are acutely aware that their legacy systems create data silos. Research reveals that 70% of banks’ IT budgets are still spent on maintaining legacy systems. Moreover, more than half cite the limitations of their core as the primary barrier to transformation.

Despite a shared recognition of the need to change, many institutions remain hesitant, concerned by the perceived complexity, cost and risk of restructuring their data architecture and overhauling foundational platforms. But this hesitation comes at a cost. As customers demand more personalised and seamless experiences, and digital challengers launch AI-enabled services at speed, traditional institutions risk falling behind.

Why Data Accessibility Unlocks AI’s Potential

The simple truth is: AI cannot thrive in isolation. It needs high-quality, accessible, and timely data. It needs customer and transactional information that’s available near real-time. And it needs a composable, event-driven architecture where data can flow freely across customer journeys and operational workflows.

Decomposing monolithic core banking systems enables all of this. By creating strategic APIs and data layers, banks can liberate critical information from legacy platforms and make it available to AI-powered services without the need for complete core replacement. In our work with leading banks globally, we’ve seen accessible data unlock:

  • 1:1 personalisation at scale
  • Real-time fraud detection and risk modelling
  • AI-assisted customer onboarding and service
  • Automation across lending, compliance and operations

This is not theoretical. It’s already happening. In one engagement, we helped a regional bank transform its operating model via a phased core modernisation programme – delivering a one-to-one return on investment over five years by shifting from reactive IT spend to proactive value creation through accessible data.

Progressive, Not Paralysing

One of the biggest myths around core modernisation is that it requires a disruptive, ‘big bang’ transformation. That’s no longer the case. Advances in architecture, engineering tools, and AI-powered development platforms – such as our own Sapient Slingshot – now make it possible to modernise progressively and liberate critical data, rather than rebuilding everything from scratch.

Techniques like multi-core routing, event-driven orchestration and domain-driven design allow banks to gradually make customer and transactional data available near real-time to channels and AI applications – all without jeopardising day-to-day operations or requiring full core replacement.

Reorienting Around Data and People

Technology alone is not enough. Successful transformation requires a cultural shift – one that reorients the organisation around data, agility, and human outcomes. The future-ready bank is not only AI-enabled but data-led and human-centric.

By unlocking and democratising data through modern architecture, banks can power everything from predictive decision-making to better colleague collaboration. We are already seeing leading firms embed AI into their customer and employee journeys. Not as add-ons, but as integral parts of reimagined experiences built on liberated data.

The Future Belongs to the AI-Enabled

As AI capabilities continue to evolve, the divide between data-rich and data-poor, and AI-enabled and AI-limited institutions will widen. The leaders will be those that treat transformation not just as a technical challenge, but as a strategic imperative – reshaping how they operate, compete and serve.

Now is the time to act. Unlocking your data through strategic core modernisation is no longer a question of ‘if’, but ‘how’. Because in the age of AI, the intelligence of your bank will only ever be as strong as the data it can access and learn from, and ultimately the systems that underpin it.

Find out more from Publicis Sapient about core modernisation here

  • Artificial Intelligence in FinTech

Author

Dave Murphy

Published

8 May 2025

Estimated Read time

5Mins

Dave Murphy, Head of Financial Services EMEA & APAC at Publicis Sapient, on why retail banking is at an important crossroads and must react

Retail banking stands at a pivotal juncture. As digital-first generations reshape customer expectations and competitive pressure from FinTechs and neobanks intensifies, traditional banks face a critical choice: modernise now or risk obsolescence. Publicis Sapient’s latest Global Banking Benchmark Retail Banking Report underscores that “digital by default” is no longer an aspiration. It’s an immediate necessity.

Drawing on insights from 600 retail banking executives across 13 countries, the report highlights a convergence of transformative forces… The accelerated adoption of Gen AI, the decline of legacy IT infrastructure, and an urgent need to reimagine customer engagement for a younger, mobile-first demographic.

Digital or Die: A Defining Moment

Retail banking has been evolving for over two decades, but the stakes have never been higher. In Q1 2025, JPMorgan Chase reported a net income of $14.6 billion, up 9% year-over-year. This was driven by robust trading revenues and investment banking fees. Meanwhile, UK neobanks are making significant strides. Revolut achieved a net profit of $1.0 billion in 2024, marking its first billion-dollar annual profit, with revenues soaring 72% to $4.0 billion. Monzo also reported its first full year of profitability, posting a pre-tax profit of £15.4 million and doubling its revenue to £880 million.

Despite these advancements, 62% of retail banking executives admit their pace of transformation lags behind competitors. This isn’t a minor delay – it’s a strategic disadvantage in a market where 44% of new currents accounts are already being opened with digital banks and FinTechs.

Gen AI: Catalyst and Compulsion

Among all the changes underway, generative AI has emerged as the most powerful and potentially disruptive force. According to the benchmark study, data and AI are the top investment areas for digital transformation over the next three years. Executives are betting big on AI not only to improve customer engagement but also to modernise operations and accelerate core transformation. The impact of Gen AI in banking is tangible. It can:

  • Personalise customer journeys at scale
  • Accelerate software development lifecycles
  • Write code and automate data management
  • Deliver hyper-relevant product recommendations
  • Power AI agents with human-like customer service abilities

In short, Gen AI makes what was once prohibitively expensive and time-consuming not only possible but scalable.

The banking customer has changed

The report makes it clear: retail banks must stop building for yesterday’s customer. Gen Z, who will make up one-third of the workforce by 2030, already prefer mobile-first, always-on banking. They value immediacy, customisation, and authenticity. A staggering 83% of Gen Z consumers say they are frustrated with current bank processes.

Compounding this generational shift is the growing irrelevance of traditional customer segmentation. Today’s consumers defy linear categorisation. The same individual can be a small business owner, a parent, and a new homeowner. Yet banks often treat them as three separate customers because of product-centric data silos.

The core problem with legacy thinking

Legacy systems continue to be the biggest barrier to meaningful transformation. 70% of banking executives say their legacy infrastructure is hindering their ability to deliver the digital experiences customers expect. Many core systems are COBOL-based and nearing end-of-life. Yet banks are reluctant to modernise due to perceived risk and complexity.

The irony is clear: the risk of maintaining outdated systems now outweighs the risk of change. With Gen AI, banks finally have the tools to confront the 800-pound gorilla in the room – core modernisation.

Why Core Modernisation is the linchpin

Modernising the core is about more than infrastructure. It’s the key to unlocking the full value of AI, data, and digital transformation. A modern, cloud-native core enables:

  • Real-time access to first-party and third-party data
  • Agile delivery through microservices
  • Better governance and regulatory transparency
  • Faster go-to-market with new apps and services

Retail banks that modernise their core can stop building costly middleware just to access data. Instead, they gain a unified view of the customer and the agility to respond to banking market shifts in real time.

The virtuous cycle of AI and Core

What’s truly powerful is the feedback loop between Gen AI and a modernised core. Gen AI helps accelerate the core transformation by generating code, automating testing, and streamlining documentation. Once modernised, that core then enhances Gen AI’s capabilities with clean, structured data. This virtuous cycle creates exponential value, making digital transformation faster, cheaper, and more sustainable.

Retail banks are already allocating 35% of their customer experience digital transformation budgets to Gen AI. Furthermore, many are embedding AI across the entire software development lifecycle using tools like Sapient Slingshot to reduce human error, increase test coverage, and ship better code faster.

From Product-Centric to People-Centric banking

Ultimately, the report urges retail banks to shift from a product-centric to a people-centric mindset. That means designing experiences around life moments, not product categories. It means knowing that the mortgage customer is also a small business owner and a parent, and offering solutions that reflect that reality.

With modern core systems and Gen AI, banks can personalise outreach, tailor financial advice, and meet customers where they are. This holistic view is essential not only for growth but also for loyalty.

The era of deferral is over. Banks can no longer afford to delay core transformation. Gen AI has lowered the cost, reduced the complexity, and increased the speed of change. The only question left is whether banks are ready to lead or risk falling behind.

Publicis Sapient is working at the intersection of Gen AI and core modernisation every day… Helping banks link strategy to execution and deliver on the full promise of digital transformation. The future of retail banking isn’t coming – it’s already here. The time to act is now.

  • Artificial Intelligence in FinTech
  • Neobanking

Author

Dan Brightmore

Published

21 April 2025

Estimated Read time

4Mins

Collaboration combines Plumery’s API-first digital platform with Darien Technology’s regional expertise to modernise customer experiences in South America and Spain

Plumery, a customer-centric digital banking experience platform, has announced a strategic partnership with Darien Technology. The consulting and technology firm specialises in financial services across South America and Spain.

Digital Banking Transformation

The partnership is focused on empowering banks and other financial institutions to modernise their digital channels. This is done without the complexity or cost of full-scale core replacements. Plumery’s developer-friendly, API-driven architecture is being combined with Darien Technology’s on-the-ground expertise in technology consulting, software development and UX/UI design. Moreover, the two companies are offering a fast, flexible path to digital transformation tailored to the needs of regional financial institutions.

Ben Goldin, Founder and CEO of Plumery, said: “This partnership allows us to extend Plumery’s reach into markets that are undergoing rapid digital change but are often held back by rigid legacy systems. Our platform provides the foundation for financial institutions to deliver seamless digital banking journeys that are easy to launch, fully customisable, and designed to scale. Through a focus on speed, cost-efficiency, and customer experience, we’re giving institutions the autonomy to evolve continuously. Without being tied to expensive vendor lock-ins or slow, professional service-heavy delivery models.”

A collaboration driving modern banking

The collaboration introduces a modern digital banking stack that integrates seamlessly with existing core systems and FinTech ecosystems. It offers financial institutions the ability to deliver omnichannel digital experiences across web and mobile. From frictionless onboarding, KYC compliance to personalised engagement and full loan origination journeys. Furthermore, the combined proposition allows financial institutions to respond immediately to changing customer expectations.

Plumery’s event-driven platform architecture and cloud-native infrastructure allow for real-time responsiveness, while its open design ensures banks and other financial institutions maintain full control over the user experience. Darien Technology complements this functionality with regional delivery capabilities and deep expertise in guiding financial institutions through complex innovation journeys.

Luis Salazar, Digital Transformation Director & CDO, EMEA at Darien Technology, said: “We’re thrilled to partner with Plumery. Their flexible, cloud-native, event-driven architecture and developer-friendly approach to digital banking, coupled with their ability to support progressive modernisation without the need for large-scale core transformations aligns perfectly with our mission to help financial institutions innovate with speed and confidence. Together, we bring not only best-in-class technology, but also deep implementation experience and local market insight that ensures banks can turn strategy into reality with reduced risk and faster time to value.”

About Plumery

Headquartered in the Netherlands, Plumery’s mission is to empower financial institutions worldwide. Regardless of size, it crafts distinctive, contemporary, and customer-centric mobile and web experiences. 

Plumery operates with a diverse team that embodies a unique combination of seasoned expertise and vibrant innovation. This blend has been cultivated through years of experience at start-ups, scale-ups, and established financial institutions. Most notably at globally leading financial technology companies, where they were instrumental in creating disruptive digital banking solutions and platforms that now serve 300+ banks globally.  

Plumery’s Digital Success Fabric platform provides banks with the foundation for success beyond fast-time-to-market. It helps expedite the development of their digital front ends. Moreover, significantly cutting costs compared to in-house initiatives or solutions with high total cost of ownership (TCO).  

About Darien Technology

Darien Technology is a digital transformation and technology consulting firm. It empowers organisations across South America and Europe to accelerate innovation, modernise legacy systems, and deliver best-in-class digital experiences.

The company has nearly a decade of experience delivering complex projects in financial services, government, and education. Darien is trusted by some of the region’s most forward-thinking institutions. Its capabilities span across end-to-end software development, systems integration, UX/UI design, cloud infrastructure, digital onboarding, document management, identity verification, and AI-driven data insights.

From modernising banking platforms and CRM systems to launching digital onboarding solutions and mobile banking apps, Darien Technology brings the right mix of strategic guidance and hands-on technical delivery. Specialised teams – covering digital consulting, software factories, and marketing automation – allow it to deliver scalable, customer-centric platforms. Furthermore, these improve operational efficiency and user engagement.

Headquartered in Panama with a growing presence in Spain, DarienT’s team of consultants, engineers, and designers understand the unique challenges of regional markets. They are committed to delivering solutions that are agile, secure, and future-ready.

  • Digital Payments

Author

Luke Kyohere

Published

14 February 2025

Estimated Read time

3Mins

Luke Kyohere, Group Chief Product and Innovation Officer at Onafriq, on payments innovations to look out for this year

The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:

1.The rise of real-time payments

Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. At OnAfriq, we are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this.

2. Cashless payments will increase

In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions.

3. Digital currency will hit mainstream

In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use Blockchain. The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability.

4. Increased government oversight

As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.

5. Business leaders buy into AI technology

In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI. Therefore, many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk.

6. Continued AI Adoption in Payments

In payments, the proliferation of AI will continue to improve user experience and increase security. To detect fraud, AI is used to track patterns and payment flows in real time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent. When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payments platforms.

7. Rise of Super Apps

To get more from their platforms, mobile network operators are building comprehensive service platforms. These integrate multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills.

8. Business strategy shift

Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble. As the payments space evolves, businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.

  • Digital Payments

Author

Dan Brightmore

Published

31 January 2025

Estimated Read time

5Mins

Jan-Willem Weggemans, Vice President, Commercial Payments Lead at Publicis Sapient on the outlook for payments modernisation

The payments industry is transforming rapidly, driven by customer demand shifts, regulatory developments and technological advances. Payments players need a tailored innovation approach for each value opportunity, based on their strategic position and ambition and each driver of change.

Understanding the drivers of payments modernisation

Driven by technological advancements, shifting customer expectations and regulatory developments, banks and financial institutions must adapt their offerings. They must modernise their payments to remain competitive in this ever-evolving landscape as we start this new year.

Customers expect real-time, seamless and personalised payment experiences that are now standard expectations across financial services. Not only that, but users are demanding frictionless cross-border transactions, alongside advanced features like biometric authentication.

Massive advances in technological capabilities drive customer expectations. Cloud computing, data platforms, Artificial Intelligence (AI), and Application Programming Interfaces (APIs) enable faster, scalable, resilient, and more secure payment solutions. These enable opportunities to innovate customer propositions and experiences. Moreover, supporting the modernisation of processes and technologies can lower costs and improve resilience.

Regulatory developments are a key factor. From new (instant) payments schemes to ISO standards to KYC/AML requirements, there is an ongoing need to change/modernise the payments operating model. And possibly innovate client solutions.

For these reasons, legacy banks can struggle with the pace of change and inefficiencies. Including enabling FinTech disruptors to gain a competitive advantage. So, how can banks examine these learnings and implement better change?

Progressive modernisation and the impact of GenAI

Banks and financial institutions can take a tailored approach to payment innovation and modernisation. In all of these approaches, modernising an incumbent player with significant legacy challenges is generally a process of progressive modernisation. Big bang approaches and the building of neo banks to move a legacy bank forward have generally not delivered success.

Progressive modernisation enables a bank to move in a controlled way from the legacy to the modern state. This requires running the legacy and modern services in parallel. Meanwhile, the integration is enabled by decoupling the hardwired systems top and bottom (integration and data). Only then can you spin up the modern enterprise and core services and progressively direct more clients/transactions/products over the new stack.

Progressive modernisation is becoming more attractive and suitable for many clients. Furtherore, GenAI can materially alter the cost and duration of these programs, offering lower risk and a significantly improved business case. With new and innovative solutions that utilise GenAI at their core, the whole journey can be greatly accelerated. Including Legacy system discovery, Target state design, Backlog creation, and Building and Testing.

Three key approaches when facing the need to modernise Payments

Payments players are facing an ongoing modernisation need, driven by changing client behaviours, technology innovation and regulatory activism. 

Broadly, we recognise three approaches to payment modernisation, including:

Fix the edge – either top of the stack or bottom, a small fix, without touching 90% of the existing tech. 

Incremental uplift – installing a modern solution (but not fully end-to-end). For example, a new core system for a set of products/customers.

Move to native build – setting steps on the progressive modernisation journey, after investing in decoupling the hardwired legacy systems.

To select the right approach, we consider two key factors: the event and the players. The event looks at the size of the opportunity (or materiality of the threat) and the size/complexity of the change. The player looks at the performance of the existing operating model, whether payments are core, and whether the ambition is to be a leader in payments or to be part of the majority of players.

How a player’s participation strategy drives modernisation choices. A client offers white label card processing services, and in their market, they need to offer the most modern solution and lead with modern technology, AI, and embedded compliance/risk solutions. A major incumbent bank decided to invest primarily in customer value propositions, driving value from the broader client relationship. The bank opted for a processing-as-a-service model when it needed to modernise the processing platform.

Looking at the two extreme options, we see that fixing the edge works well for players where payments are not core, when they do not need to be the first mover, or when their existing operating model is performing well. From an event perspective, it fits when the opportunity is small and/or the change is minor in effort and complexity.

At the other end of the spectrum, moving on the journey to native build is most suited for players where payments are core. Where they want to be the first mover in the market, and where the existing operating model is facing major challenges. From an event perspective, it is more suited when the event supports a significant value opportunity (or threat to the business) and requires a significant change.

Making payments progress real

Many new payment options, including A2A payments and instant payments, offer incremental benefit cases for many players. These are not large enough to kick off the incremental modernisation journey. Thus, most players will opt for a “fix the edge” or “incremental” modernisation approach and wait for another event for a full modernisation.

Regarding regulation. The new ISO20022 standard is due to come into full force in November 2025. However, less than a third of messages were exchanged using the new standard in late 2024. An often cited reason for delays in implementing regulatory changes is the edge approach replanning required to keep up with the evolving set of rules regarding the ISO standards. The evolving set of rules is inevitable, as the regulator is responding to market experiences and feedback from trying to implement the initial rules set. Thus, in regulatory change with this level of impact, a cloud-native approach would be better, enabling a more nimble/agile response to continuous changes.

What is the next move?

Faced with the inevitable need to invest in payments, we suggest taking a portfolio approach and looking 2-3 years ahead when evaluating individual modernisation events. And your strengths/weaknesses and strategy. Modernisation is not just a technical upgrade but a strategic enabler that can drive efficiency, resilience, and innovation. You can ensure that each modernisation effort contributes to a cohesive, future-ready payments ecosystem by aligning your investments with long-term business goals. This approach will help you avoid costly short-term fixes. And build a scalable, agile infrastructure that supports evolving customer expectations, regulatory requirements, and competitive pressures.

  • Digital Payments

Author

Dan Brightmore

Published

14 January 2025

Estimated Read time

3Mins

Yuno and PayPal team up to simplify Digital Payments for merchants with flexible options to broaden market reach and unlock new revenue streams

Yuno a leading payment orchestration platform, has announced a strategic collaboration with PayPal, a global leader in Digital Payments processing. This collaboration significantly enhances Yuno’s offering, giving merchants seamless access to PayPal’s vast active user network. This now surpasses 400 million worldwide.

Unlocking revenue streams with Digital Payments

Yuno-powered merchants can now effortlessly offer PayPal’s secure and flexible payment option, broadening their market reach and unlocking new revenue streams. Trusted by millions worldwide, PayPal allows users to make purchases, transfer funds, and pay bills in a fast, easy, and secure way, without the need to repeatedly enter card payment information, contributing to reducing digital footprint and providing the security users are looking for. 

Including this partnership, Yuno now supports over 300 global payment methods via its intuitive, user-friendly interface, making it easy for merchants to scale quickly by offering the most popular and locally-relevant payment methods in each market. Yuno’s platform also provides access to other innovative features. These include one-click checkout, advanced fraud protection, and optimised payment routing. This boosts transaction success rates and prevents lost sales in the wake of outages at a payment provider.

Catherine Kaupert, Global Head of Partnerships of Yuno, commented: “We’re thrilled to team up with PayPal, a well-known and trusted name in Digital Payments processing globally. This integration further strengthens Yuno’s capabilities, allowing our merchants to tap into PayPal’s extensive network and drive growth with ease. Together, we are simplifying payments, making them more secure, and enabling businesses to scale without friction.”

Paola Fuentes, Head of Partnerships for Hispanic Latam at PayPal, added: “Our affiliation with Yuno integrates our entire product portfolio. Including PayPal Checkout and credit and debit card payment processing to provide cutting-edge payment solutions for both customers and businesses. By joining forces, we are expanding the benefits of both companies’ offerings, giving consumers the option to select the payment method that suits them best and take advantage of instalments. According to recent data from AMVO, this is one of the main incentives for Mexican consumers to make purchases through the digital channel”.

Last year, Yuno secured $25 million in a Series A round led by Andreessen Horowitz, Tiger Global, DST Global Partners, Kaszek Ventures, and Monashees, fuelling its expansion across Asia, Europe, the Middle East, and Africa.

About Yuno

Yuno has emerged as a dominant force in global payment orchestration. Its core mission is to empower global commerce by enabling businesses of all sizes to accept and disburse Digital Payments anywhere in the world. Furthermore, fostering financial inclusion.

Yuno enables businesses to access over 300 payment methods worldwide. As well as innovative features including one-click checkout, smart routing, and robust anti-fraud tools via a single unified, easy-to-use interface. Yuno serves a global customer base that includes McDonald’s, inDrive, Rappi and other renowned brands across more than 80 countries.

About PayPal 

PayPal has been revolutionising commerce globally for more than 25 years. The company creates innovative experiences that make moving money, selling, and shopping simple, personalised, and secure. PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy.

  • Digital Payments

Author

Ozge Celik

Published

20 November 2024

Estimated Read time

4Mins

Ozge Celik, Head of Product at Turkey’s largest FinTech Papara, on how personalisation is making everyday financial transactions more manageable and embedded into our lifestyles

With unlimited choice from a global marketplace, customer expectations are continuing to reach new heights. Undeniably, we are seeing financial services – being led by the FinTech sector – undergoing a seismic shift towards personalisation and catering to this new form of demand. Users are no longer content with generic services. Furthermore, they want tailored, hyper personalised experiences that reflect their individual needs and preferences. This is particularly true for their banking experiences. Yet, many traditional banking institutions are struggling to keep up with these demands due to their legacy systems and traditional cookie-cutter approach. Whereas the FinTech industry, with its agile frameworks and state-of-the-art technologies, is demonstrating its capability to rapidly position solutions that cater to this demand.

The growing trend for personalisation

Personalisation in consumer services is not a novel concept, but its application within the financial sector is a relatively recent development. Despite its infancy, its impact on the industry is profound. Banking has always been a cornerstone of our daily lives, from withdrawing cash to transferring funds. As such, it is unsurprising that users increasingly view their financial services as an extension of their personal identity.

Over the past decade, we have seen the introduction of customisable physical bank cards, personalised digital tools on mobile banking apps and instant messaging services. Banks and fintechs are striving to meet users’ needs, reshaping the loyalty landscape that has traditionally favoured established banks. These institutions, with their often rigid and cumbersome systems, are being compelled to re-evaluate their user engagement strategies and the solutions they offer.

Leading the customisation charge

Startups and FinTechs are riding the crest of this wave of customisation. Traditional financial institutions frequently overestimate the costs associated with data collection and the development of meaningful personalised tools. FinTechs, on the other hand, harness their technological capabilities to sift through vast amounts of data, identifying individual preferences and behaviours. This insight enables them to better create personalised products and services that resonate with consumers on a deeper level. Offering such tailored experiences is not merely a competitive advantage; it is quickly becoming essential to attract and retain users.

The rise of the super app

The emergence of the super app epitomises this new paradigm. The inconvenience of managing multiple mobile banking apps is becoming a thing of the past as consumers increasingly favour a unified platform that addresses all their financial needs. This demand extends beyond financial services. The success of super apps like Alipay and WeChat Pay, which integrate services from ride-hailing to grocery shopping, illustrates how this model has become ingrained in everyday life. While the same level of adoption may not be universal due to various market factors, FinTechs are taking note and developing intuitive apps that combine financial and non-financial functions to deliver a seamless and efficient user experience.

FinTech’s personalisation extends to every facet of the financial journey. From customised budgeting tools and investment portfolios, to personalised insurance products and bespoke lending solutions, providers are redefining what it means to have a financial service that truly fits the individual.

The implications for personalisation in traditional banking

To stay relevant, banks must embrace digital transformation and consider partnerships with FinTechs or face the risk of further falling behind. Collaboration between established financial institutions and FinTech disruptors can yield the best of both worlds: the trust and scale of traditional banks combined with the innovation and agility of fintech.

As FinTechs continue to meet and exceed the hyper-personalised needs of consumers, they are establishing a new benchmark in the financial services industry. By making everyday financial transactions more manageable and integrated into our lifestyles, they are not merely responding to consumer demands but are also anticipating them. As this trend progresses, we can expect to witness further disruption, with fintechs at the helm, steering us towards a more personalised and accessible financial future for all.

About Papara

We are not a Bank; we are Papara, we are here for you.

We are a financial technology company that offers a new financial application experience. Keeping the user in mind against the traditional financial solutions, we strive to build the next generation financial super app. Our amazing community always suggest features and gives us constant feedback.

We integrate the most innovative technology to help our users control their money while being completely transparent.

In 2015,we started our services with the permission we received from the Banking Regulation and Supervision Agency to operate as an “Electronic Money Institution”.

Papara is the first non-bank to issue a Mastercard logo prepaid card in Turkey and currently a Mastercard, Visa, and Interbank Card Center member. In our seventh year of operation, we have acquired 21 million users and expanded our team to 1.000 happy people dedicated to creating the best financial experience.

Today, millions of our users choose Papara’s innovative products to make millions of transactions every month.

Image credit: www.dubaisims.com

  • Neobanking

Author

Zachary Scott

Published

18 November 2024

Estimated Read time

3Mins

Zachary Scott, Managing Director at Publicis Sapient on Buy Now Pay Later demand in the UK and the changing nature of CX in 2025 and beyond…

In the dynamic world of consumer Embedded Finance, Buy Now, Pay Later (BNPL) services have become a game-changer. They offer shoppers greater flexibility and convenience. BNPL allows consumers to make immediate purchases while spreading payments over time, often without interest. Its popularity skyrocketed during the pandemic. Fuelled by the e-commerce surge, it continues to play a pivotal role in shopping habits. Recent surveys reveal that 39% of U.S. consumers plan to use BNPL within the next six months.

This growth isn’t confined to the U.S. It’s a global phenomenon. U.S. fintech giant Affirm recently launched its BNPL services in the UK, marking its first international expansion. Affirm selected the UK due to strong demand from merchants eager to incorporate flexible payment options into their offerings.

The BNPL boom reflects a broader trend in Embedded Finance, which integrates financial services seamlessly into non-financial interactions. BNPL, for instance, embeds financing directly into the retail experience. This allows consumers to access payment plans as part of their shopping journey. This integration simplifies the traditionally separate processes of purchasing and financing, creating a smoother, more user-friendly experience.

Optimising customer experience for Embedded Finance

The value case for Embedded Finance is based on this seamless customer experience and the opportunities it offers to enhance the services offered. Partner companies are able to provide financial services without having to maintain extensive and complex financial infrastructure, leveraging technology to facilitate these offerings instead.

Already, several opportunities are emerging that are poised to propel the growth of embedded finance into new sectors and applications. Banks and retailers should be prepared to seize opportunities from embedded insurance products, embedded wallets in non-financial apps, and new forms of embedded lending that go beyond the existing BNPL instalment model.

Consolidating Services

However, to succeed in this next phase, financial service providers and their partners will have to keep pace with and be ready to adapt to changing consumer preferences and requirements. Staying ahead of the curve takes more than just improving individual interactions. It involves curating a comprehensive journey that aligns with consumers’ expectations for simplicity, transparency, and flexibility. People are increasingly seeking a mobile-first platform that caters to both their financial and non-financial needs in a single, unified space. Driving further consolidation of customer journeys through Embedded Finance is likely to be a critical strategy for industry leaders in the next wave of adoption.

Advancements in open banking protocols and the rise of new FinTech ventures are setting the stage for more integrated financial and non-financial services, further blurring the boundaries between these two traditionally distinct customer journeys. Emerging trends in Generative AI and conversational banking will also contribute to the enhanced customer experience. These technologies are set to shape consumer expectations, with more and more people looking to access support and services through conversational experiences. Embedded Finance is no exception.

New Opportunities

For financial service providers, embracing these trends opens myriad possibilities. Leading the charge in Embedded Finance can contribute to customer acquisition, generate direct revenue from the new services offered, and enable cross-selling of other financial products.

For partners within the Embedded Finance ecosystem, the opportunities are equally substantial. As well as driving Net Promoter Score (NPS), they can unlock new referral or commission-based revenue streams.

It’s clear that the future of consumer finance is deeply linked to the progress of Embedded Finance. As more offerings beyond BNPL emerge, the boundary between financial services and non-financial experiences can become increasingly blurred. For providers and partners ready to embrace this change and leverage it to meet evolving customer needs, this represents a substantial opportunity.

Learn more about Embedded Finance from Publicis Sapient

  • Embedded Finance

Author

Dan Brightmore

Published

19 September 2024

Estimated Read time

6Mins

FinTech Strategy spoke with Zak Lambert, Product Lead for Plaid in Europe, to find out more about the world-leading data network and payments platform

Plaid offers the world’s largest open finance platform. Plaid specialises in bank connectivity and provides a single API for customers to integrate with banks around the world. They have had innovative success stories working with companies like Western Union and MoneyBox. Plaid see opportunities around current trends such as account-to-account payments, variable recurring payments, and cash flow underwriting for businesses and consumers.

At Money20/20 Europe, FinTech Strategy spoke with Plaid’s Product Lead for Europe, Zak Lambert, to learn more…

Tell us about Plaid…

“I work in product management for Plaid in Europe. We’re the world’s largest open finance platform operating across 20 markets in Europe and North America. Back in 2019 when we first launched in Europe our bread and butter was bank connectivity. Integrating with over 10,000 banks through a single API. We still provide that connectivity in one API for our customers. Millions of users go through that journey every day for a number of different use cases.

Building on the core bank connectivity capabilities, we’ve spent the last few years building localised value added services. We launched underwriting services to help companies such as YouLend provide more credit with less risk. We optimised our Pay by Bank offering so companies like Western Union can provide instant transfers with higher thresholds, and companies like PokerStars can provide seamless and instant payouts.

Tell us about your role at Plaid?

“I was part of the team that started Plaid in New York and opened the office there. I did a variety of things from helping customers integrate, building new products, working with sales teams, and anything else that would help us grow, About a year after that, I moved over to London to be the first person on the ground there. Fast forward five years and I’m delighted to be the head of product in Europe. I’ve been with the company for about five and a half years. Overall, it’s just been an exciting journey from a hundred people to more than a thousand now.”

Talk about some of the successful integrations Plaid is involved in…

“We recently announced that we’re working with Western Union across Europe to fund transfers, whether that’s someone depositing in the UK and Germany, Italy or Spain. Plaid is powering account to account payments for Western Union across their various use cases. Particularly when you look at the growing trend around account-to-account payments and pay by bank, we’re thrilled to be working with brands of that caliber. Since launch we’ve seen hockey stick growth for their customer adoption of pay by bank. This shows trust and reliability of the open banking ecosystem which we’re excited to be a part of. We are also delighted to be supporting MoneyBox, one of the largest fintechs in the UK. They handle millions of transactions to fund and create ISAs. Moneybox have launched VRP (Variable Recurring Payments) through Plaid in order to optimise their customer flows and have more reliability in customer recurring payments. With our new flow, users can go through the journey once, set up their consent, and then money can move in the background. It’s like a card on file with a bank account. We see this as a significant trend in the coming years in the UK specifically, and then across Europe as that product set develops.”

The UK has always been an early adopter of open banking but we’re now seeing a surge in demand from mainland Europe. We are currently live in 18 markets in Europe and continue to focus on our reliability and depth in each market to ensure we can meet that demand.

This year, we’ve learned more about how our customers want to use VRP (Variable Recurring Payments). In June, we launched Moneybox’s VRP proposition to enable them to relaunch their Payday Boost offering which was previously restricted by direct debit limitations. Every week we’re having more and more conversations on VRP use cases. 

We’re also excited about how open banking and fintech more broadly can help make financial access more inclusive. For example, open banking can help the underserved get more access to credit by using real-time data to inform underwriting decisions. At Plaid, we’ve built specific products to do this such as the Financial Insights Report that companies such as Capital on Tap are already using to inform their decisioning programmes.

And what’s next for Plaid? What future launches and initiatives are you particularly excited about?

“There are three areas I would highlight… First, pay by bank globally for Plaid. You look at Western Union, they’re probably not the first company to adopt something, but the second they adopt something it probably is about to hit mainstream. That’s significant volume. They’re one of the world’s oldest companies. They’ve been fantastic to work with. So, as that trust and familiarity start coming into play, people that aren’t Western Union come and say, okay, we’ve seen this experience. It was really good. We want it now. We’re working with our teams across the globe to bring that to life for North America and Europe in the simplest way possible. It’s really exciting.

“Second, we have the significant opportunity to bring lending into the 21st century. Particularly because of the third thing, which is the Plaid network. We’ve touched hundreds of millions of consumers. We’ve spent a long time building products to make payments easy and to make underwriting easy. And now we’re in the third phase… We have all of these users, this large network, so how can we make this even simpler for people? And just giving smoother experiences when the user is actually in the workflow. So, boosting conversion, delivering network style experiences in the same way that other network businesses do.”

Why Money20/20? What is it about this particular event that makes it the perfect place to showcase what you do? How has the response been to Plaid?

“This is my sixth straight Money20/20 and it gets busier every year! It’s great to learn more about the ecosystem at large. You can see developing trends each year, and it’s always a little bit different. You build relationships at Money20/20 that stay with you for the rest of your life. And it’s a perfect opportunity to meet people in the flesh that you might normally only see on screen. You can get a pretty direct read on what they’re working on and it’s exciting to be here making new connections.”

  • Digital Payments
  • Together in Events

Author

Dan Brightmore

Published

25 July 2024

Estimated Read time

6Mins

FinTech Strategy met with Merusha Naidu, Global Head of Partnerships at Paymentology, to discover more about the global issue processor.

Banks, digital banks and fintechs, around the world, trust Paymentology to issue and process all forms of cards and transactions, at scale. Paymentology offers a cloud-based platform, rich data, a global footprint and proven track record powering industry leaders and game-changers.

A global issuer processor with on the ground teams in 50+ countries across 14 time zones, Paymentology’s founders saw that the payments industry was stagnant and limited, in both capability and ambition.

In March 2021, Tutuka and Paymentology merged, resulting in a ‘payments and card processing powerhouse’. The merger combined the ultra-advanced, multi-cloud platform of Paymentology with the global reach and experience of Tutuka to revolutionise cloud-based processing globally. 

Tutuka was traditionally a financial services company, that provided payment processing technologies, software and services, and application programming interfaces (APIs) for e-commerce and digital transacting across countries in Africa, Latin America, Southeast Asia, and the Middle East, while Paymentology processed for legacy banks in Europe and the UK. The merger enabled banks and fintechs to integrate into a single API, go live and issue cards almost anywhere in the world.

At Money20/20 Europe, FinTech Strategy spoke with Global Head of Partnerships, Merusha Naidu, to find out more…

Tell us about the genesis of Paymentology?

“Paymentology is a global neo processor. We work with banks and fintechs to help them issue their own cards, whether prepaid, debit or credit, virtual or physical. The beauty of the platform is that it’s fully cloud native. So, we’re scalable. We’re focused on speed to market so when you are working with a fintech, or a digital bank, it’s all about two things. How do you innovate? And then how do you go live quickly? Those are two areas of the business that we really focus on. Not only is our tech state of the art, with everything built in the cloud, all of our infrastructure is also in the cloud, including things like our connection to schemes.

We were the very first issuer processor to connect to Visa Cloud Connect, via cloud endpoints in Europe. Being first in embracing modern practices, we ensure our processes are next-generation, thanks to our fully cloud-native and digital infrastructure.

What makes us different? We operate across UK, Europe, the Middle East, Africa, Latin America and Asia Pacific; we are truly global, operating across all five regions. One of the things that makes that possible is our tech. A customer can integrate with us once and then launch across five regions if they wanted to, or multi-market rollouts. We offer a huge ability to scale using integration. Our customers are able to replicate that digital first experience across every single jurisdiction. So, whether it’s Kenya and Dubai and then Saudi Arabia and Portugal, they can have the same experience across the world.”

Tell us about your role at Paymentology?

“I’ve been with Paymentology for 14 years. Prior to taking up my current role as Global Head of Partnerships, I was the Regional Head of Asia Pacific. So, when you look at partnerships, I was asked a question recently at a talk: ‘What would my message be to issuers across the industry?’ My message is that you can’t do it alone. If you want to create truly scalable, innovative solutions, you’ve got to work with partners and collaborate with the best in class. We know we are best in class when it comes to issuer processing, but we also create ecosystem partners that close the gap when it comes to creating really valuable payment ecosystems.

Whether it’s top core banking providers, leading cloud services, or premier card manufacturers, these are the partners we collaborate with. This allows us to confidently assure our customers that we work with the best, to deliver the best, across the entire value chain.”

Tell us about some of the successful partnerships Paymentology has been involved in…

“We were the first company to deliver flip card technology for our client Mox. Paymentology embedded its global processing capability into the platform, to enable Mox to launch its ground-breaking feature to ‘flip’ between debit and credit spending on the all-in-one Mox card. This allows you to have one physical card, one virtual card number, but in the background, we link it to two different accounts.

It gives the customer real flexibility around how they can spend, because if it’s everyday purchases, they can use their debit account or their prepaid account. If they have larger purchases, they can switch in the app and use their credit facility. So, it really gives customers flexibility and choice – two things at the heart of what we do.

“Cross-border payments for us is key. Meanwhile, everyone talks about being digital first. For us, tokenisation has helped and we have a superior partner, MeaWallet, to help us deliver this. Elsewhere, crypto has been seen as a sore point but it’s coming back and people again want that flexibility. So, having a way for customers to spend their crypto, converting crypto to free apps and making sure that data is at the heart of all that. It’s about learning about our customers, understanding what our customers want and using our data to make informed decisions, or giving our customers data so that they can make the decisions.”

And what’s next for Paymentology? What future launches and initiatives are you particularly excited about?

“We’re excited about being able to deliver flexibility, control, agility. Because the Paymentology platform is so agile, in the future you will be able to plug in even more different components into the offering. So, a customer can add in rewards and loyalty points. For example, airlines have a platinum MasterCard product, so it opens them up to all of the MasterCard loyalty rewards, airport lounges, all of those benefits. It’s all about being innovative and keeping up with that innovation and growing with customers.”

Why Money20/20? What is it about this particular event that makes it the perfect place to showcase what you do? How has the response been to Paymentology?

“Paymentology is headquartered in the UK so it’s important for us to make sure we’re representing business across Europe. This is the centre of the world for banking innovation. People look to this event to really learn about what’s happening in the industry globally and discover what trends are going to come up. What should we be doing? How can we innovate together and learn from each other? That’s one of the things I really love about Money20/20; the talks in all of the panels are so interesting and I always leave knowing more. Being in the payments industry, and especially being an issuer processor, it’s important for us to learn from the industry and understand where we need to move so that we can stay at the forefront of developments.”

  • Digital Payments
  • Together in Events

Author

Dan Brightmore

Published

9 July 2024

Estimated Read time

3Mins

FinTech Strategy and Interface joined Publicis Sapient at Money20/20 in Amsterdam for the launch of its third annual Global Banking Benchmark Survey and spoke with Head of Financial Services Dave Murphy about its findings

The third annual Global Banking Benchmark Study from Publicis Sapient draws on insights from 1000+ senior executives in financial services across global markets. The study focuses on the goals, obstacles, and drivers of digital transformation in banking.

Global Banking Benchmark Study

The study was launched during Money20/20 Europe in Amsterdam last month. Eoghan Sheehy, Associate MD, and Grace Ge, Senior Principal, highlighted the banking industry is focused on improving existing processes rather than introducing new ones. Data Analytics and AI are identified as key priorities for digital transformation. Additionally, there is a focus on internal use cases and efficiency.

Eoghan and Grace also discussed the challenges faced by the banking industry. These include regulation, competition from companies like Amazon, and the need to attract talent. They emphasised the importance for financial institutions of modernising core infrastructure. Also, building cloud infrastructure to support ongoing digital transformation. Moreover, the study notes the prevalence of the development of custom-made tools and internal use cases for AI implementation. Furthermore, Eoghan and Grace provided examples of repeatable use cases and discussed the success factors for Data Analytics and AI.

Four key takeaways from Publicis Sapient

Four key tracks came out of the study…

  • Modernising the core will always be important. But modernising the core for its own sake and also building the cloud infrastructure that supports it or allows for it to be modern. A decent chunk of the survey responders are still very focused on this. Executives are stating they want to make sure their people can make the best use of the beautiful core they’ve now built.
  • GenAI is an area of thoughtful experimentation for the Neobanks. We’re talking about scaled microservices here. Instances where, across Neobanks, you’ll have the same machine learning model and the same GenAI text generator facilitating retail and SMEs. That’s pretty sophisticated and something everyone has to contend with.
  • Data Analytics transformation is a key priority using GenAI to do so along with bringing new talent into the game.
  • Payments has been a big theme at Money20/20… We’re seeing lots of activity around ancillary individual product areas.

“The study focuses on how to think about solving problems end-to-end. Banks are dealing with legacy issues and taking a customer first view into solving the challenges. The practical application of AI across the banks is a significant theme as they look to automate decision-making and deliver better credit risk models. AI is finally delivering a set of use cases that truly can impact the way banks operate and build their own technology.” Dave Murphy, Head of Financial Services, EMEA & APAC

Be among the first to receive the study by signing up here


  • Artificial Intelligence in FinTech
  • Together in Events

Author

Dan Brightmore

Published

23 April 2024

Estimated Read time

3Mins

Read in brochure format

Publicic Sapient CEO Nigel Vaz reflects on the leadership strategies required for successful digital business transformations

The hardest part of being a business leader and CEO – especially leading through change – are the choices we make every day to move toward that will drive our future success. Often, this will mean letting go of things that made us successful in the past. We must make room for new skills, relationships, ways of working, and opportunities.

The average CEO has 30 years of business experience and makes decisions based on that accumulated experience. But think how much the world has changed in the space of five years, let alone 30. The same thinking and approach are not going to stand the test of time. The modern CEO needs to find and maintain the ability to turn preconceived ideas on their head. As a leader, I’ve always felt it’s important that I adopt the behaviours I advise for our clients. Leaders must be willing to learn, adapt and act with speed.

The Modern CEO

The modern CEO has a complicated, bordering on paradoxical, relationship with change. We dislike uncertainty and volatility, and yet we have an intense distaste for stasis. We would rather avoid geopolitical instability and macroeconomic challenges. However, changes to customer needs, shifting industry landscapes and rapid technological innovation bring opportunities to transform our companies. We must identify paths to value creation and growth, and build better, more efficient businesses. And, the reality is for today’s CEOs, you don’t get to pick one or the other. You have to be ready to lead your organisation in the context of both simultaneously. Leading through either type of change is not for the faint of heart.

In my role as CEO of Publicis Sapient – a digital business transformation company that partners with organisations globally to help them create and sustain competitive advantage – my relationship with change is amplified. I am responsible for driving growth and ensuring our business capabilities are optimised for the digital age. At the same time I’m leading a business that empowers our clients to embrace change by putting digital at the core of how they think, organise and operate. On the Executive Committee of our parent company, Publicis Groupe, I am also weighing in on how to lead on the digital business transformation of the Groupe. This has been accelerated this past year with the pace of AI.

Change Management

The nexus of these different aspects of my CEO role is not uncommon to many of the CEO clients we work with. Like myself, they are leading their organisations and people through a period of tremendous change. Furthermore, they are tasked with making decisions daily on choices that will impact the direction and outcomes for their company.

One of the most critical choices they will make is determining the purpose of their organisation. When there is so much change and challenge surrounding you, the easy path is to react and say, ‘How do I overcome each of these challenges?’ But first you have to be clear on who you are as an organisation and the impact you want to have. Without that sense of direction, you can very easily fall into the mistake of making disconnected, reactive decisions.

Read the full story here

Author

Sean Galea-Pace

Published

5 February 2024

Estimated Read time

5Mins

From cost-containment to carbon emissions, here are the 10 things that should be top of mind for every chief procurement officer in 2024.

In the year to come, procurement will continue to transition from a back office function to a boardroom value-driver. Chief Procurement Officers and other leaders will need to increasingly reevaluate their relationships to the rest of the business as procurement not only becomes an increasingly vital source of business wins, but also a central piece of the puzzle when it comes to emissions reduction and resilience throughout the supply chain.

From generative AI to the skills shortage, there’s a lot that CPOs could be focusing on in the year ahead. We’re kicking off the new year with our list of the top ten things CPOs should be prioritising in 2024.

1. Drive significant value for the business

That’s why the first priority of all CPOs in 2024 is to apply technology, new operational organisation, hiring practices, sustainable strategy, cost containment, and every other trick and technique in order to create value for the business. Increasingly, CPOs are transitioning from logistical and cost-cutting functionaries to “orchestrators of value” and that will only become more apparent as the year (and decade) wears on.

2. Drive digital transformation

As mentioned before, procurement is a process that’s reinventing itself before our very eyes, embracing new digital technologies and ways of working that increase efficiency and drive value for the business. CPOs are increasingly important integrators of technology into the business, and should all be prioritising ways to implement technology over the coming year. However, it’s important to beware that technology for technology’s sake is even more dangerous than sticking it out with a legacy system… 

3. Reduce environmental impact

Knowing may be half the battle, but once CPOs have an understanding of the environmental impact their S2P process has, they must prioritise finding ways to mitigate that impact. From a stricter regulatory landscape to a more perceptive and angry public, a meaningful environmental sustainability strategy is no longer “nice to have” or even necessary: it’s long overdue.

4. Understand your Scope 3 emissions

More than 60% of procurement leaders in the US, UK, and Europe surveyed in a recent report say that their Scope 3 emissions reporting process is more of a “take your best-guess” approach than a process of gathering concrete, reliable information.

The S2P process is one of, if not the, biggest source of greenhouse gas emissions for every company on earth, and understanding the consequences of working with one supplier or another (and then accurately reporting that information) is a huge part of the journey to net zero. CPOs who fail to prioritise transparency in their S2P process will find themselves actively hindering their organisations’ environmental ambitions at a time when procurement has the potential to be the biggest driver of positive environmental impact in many organisations.

5. Cultivate your supplier ecosystem 

As much as technology is playing a bigger and bigger role in the procurement process, no CPO should discount the importance of building genuine, strategic relationships within their supplier ecosystem. Obviously, some industries are doing better than others, but in many areas (like the fashion industry, where “Those in charge of contracting suppliers for fashion brands say they are investing in longer-term strategic partnerships,” but their suppliers “tell a different story”) there’s still need for improvement. 

6. Don’t buy into the hype (too soon)

In 2021, it was self-driving cars. In 2022 it was the metaverse. And last year saw the world get absolutely bent out of shape over the promise of generative artificial intelligence. However, much like NFTs and blockchain (another thing everyone was spending a lot of money trying to figure out how to make money from for a while), the promised trillions of dollars of economic impact from these technologies has yet to translate into meaningful business applications. Even the hyperloop was abandoned this year.

Procurement is an area with a huge amount of potential for digital transformation, and adopting the right technologies for the right reasons is what’s going to separate industry-defining success stories from all those dudes who went blind at the Bored Ape Yacht Club convention.

7. Mitigate risk to the supply chain

In the wake of the COVID-19 pandemic, the global source to pay (S2P) process has transitioned from a “just in time” approach to a “just in case” one. As climate change disrupts agriculture and manufacturing across the global south, and events like the Yemeni blockade of the Suez canal in order to hinder Israel’s occupation of Palestine hinder the movement of goods between regions, CPOs should prioritise diverse buying strategies that mitigate risk to their S2P processes.

8. Be a source of cost-containment

Inflation was a defining characteristic of the economy in 2023, as corporate price gouging (amid other factors) caused cost-of-living to spike. In a world of rising prices, and supply chain unpredictability, controlling costs will fall increasingly to CPOs in 2024. Cost reduction targets have been hit less consistently across the industry in the last few years, thanks largely to inflation and the pandemic’s disruption of global supply chains. Going into the year ahead, CPOs who can find a way to successfully meet their cost containment targets will find themselves with a serious leg up over their competition.

9. Don’t lose existing talent

The world is in the midst of a growing resurgence in the power of labour, as class consciousness and anti-capitalist sentiment rise. The old propaganda about loyalty to companies that would replace that employee in a heartbeat doesn’t work anymore, and workers are increasingly understanding (and demanding) their true worth, and it sent shockwaves through the service, autoworker, and entertainment industries in the US last year alone.

With the tech sector still leading the world in brutal mass Q4 firing and rehiring strategies, and labour movements within massive logistics firms like Amazon growing stronger by the day, 2024 promises to be defined by more strikes and other examples of direct action, not less. CPOs in the middle of a talent shortage should prioritise giving their employees reasons to stay beyond gym memberships and company pizza parties.

10. Hire top talent

The nature of procurement is changing. As the discipline becomes increasingly digitalised, not to mention plays a more strategic role within the modern enterprise as a whole, the skills that make for a good procurement professional aren’t the same skills that were on job listings ten, or even five, years ago.

In 2024, CPOs should constantly reevaluate the skills necessary not only to do the job now, but to tackle the procurement challenges of the next few years when hiring.

Author

Sean Galea-Pace

Published

1 February 2024

Estimated Read time

7Mins

CPOstrategy explores this issue’s Big Question and uncovers if now is the greatest time to be in procurement.

Procurement has a unique opportunity.

Amid unprecedented digital transformation and innovation, it finds itself in a state of flux and momentum. For professionals who like change, procurement is the place for them. The years of procurement standing still are long gone, its position in the c-suite is only becoming increasingly secure and prominent.

As Covid outlined, businesses need flexible and agile supply chains that are equipped to deal with local or global disruption based on macroeconomic factors. This could be an aforementioned pandemic, wars like the ones we’ve seen in Ukraine and Israel in recent years or other external issues such as the Suez Canal disruption or inflation concerns. Procurement’s time is now. 

At DPW Amsterdam 2023, the notion that procurement exists in today’s world as an exciting function that spearheads the c-suite. In comedian and host of DPW, Andrew Moskos’, opening welcome, he noted procurement’s transformation and shouted. “Procurement used to be boring but now we’re all rockstars. We run the company, we’re in the c-suite, we run ESG, sustainability, risk and 80% of the spend of a company goes through us.” His message was met with loud applause from a capacity crowd at former stock exchange building Beurs van Berlage.

Michael van Keulen, CPO, Coupa

According to Michael van Keulen, Chief Procurement Officer at Coupa, it’s the feeling of ‘no two days are the same’ which keeps him energised and feeling refreshed about meeting new challenges in the space. “I wear so many different hats every single day,” he explains. “I always say sometimes I’m an accountant, others I’m an environmentalist. Sometimes I’m the treasurer or a finance person, but I’m also sometimes a psychiatrist. Sometimes I’m a doctor, a nurse, a lawyer, a judge, an environmentalist and yes even a wizard.

“I never know what my day looks like. I can plan it, but something may happen where everything goes out the window. Procurement will always be going through some type of disruption. It’s about how you drive the competitive edge and how you drive value despite that. Procurement is the best gig in the world. It’s great that more people have started to see that now too.”

Right now, generative AI is the latest craze causing quite the buzz in procurement. Indeed, its noise is loud with its true influence yet to be determined. But it’s worth remembering generative AI didn’t start with ChatGPT in 2022. Chatbots actually go back to the 1960s. Among the first functioning examples was the ELIZA chatbot which was created in 1961 by British scientist Joseph Weizenbaum. It was the first talking computer program that could communicate with a human through natural language. But, given the introduction of a far more advanced model – ChatGPT – gen AI isn’t just making waves in procurement but across industries globally too.

Daniel Barnes, Community Manager, Gatekeeper

For Daniel Barnes, Community Manager at Gatekeeper, the stakes are high. As a self-confessed change agent, he believes procurement stands at a make-or-break moment. “You’ve got people who are stuck in the past that are archaic with what they’re doing. Then there’s those who are really pushing the profession forward,” he explains. “I see it as a moment in time where procurement kind of goes one in two ways. It’s extinct in terms of how it used to be. There’s solutions which have automated workflows and are doing the work that traditional procurement people used to do. We can pull people along, but there has to be a willingness to change or it’s not going to happen. That’s why I think it’s great to see people that are showing that willingness. They may not have the answers, but they want to learn.”

Alan Holland, CEO, Keelvar

According to Alan Holland, CEO of Keelvar, he is bullish and optimistic about procurement’s future, stressing that decision-making for the function is easier than ever before. Holland affirms tomorrow is “very bright” as procurement enters an era with intelligent software agents that can automate workflows and make the human workday more efficient. “There’s a whole new range of possibilities where creative and thoughtful planning will provide a competitive advantage for organisations. Procurement can be far more influential in how successful their companies can be. It’s a game-changer.”

Scott Mars, Global V

Scott Mars, Global Vice President of Sales at Pactum, affirms procurement’s in its golden age given the number of vendors operating within the procuretech ecosystem has hit soaring heights. He tells us, “I was speaking with a CPO recently and he said 10 years ago you could name the procure to pay and ERP vendors on one hand, now there’s hundreds of them and all these periphery vendors for AI and spend. The most visionary procurement leaders aren’t just looking at these all-encompassing solutions, they’re bolting on niche solutions into their ecosystems to make their teams more efficient. I think we’ll start to see a consolidation in the coming years of all these little companies into a few larger players to do really an end-to-end type solution. I expect someone to come up with a solution to close the loop in procurement.”

Stefan Dent, Co-Founder, Simfoni

While procurement, like many industries, is still plagued by talent shortages, there is hope that AI could hold the answer. But while its influence is crucial in one hand, is there a risk that the industry could go too far the other way and become over reliant on technology? Stefan Dent, Co-Founder at Simfoni, believes soon Chief Procurement Officers will soon be thinking differently about their workforce. “This is arguably the best time for people to join procurement, as you’ve got this great opportunity to embrace digital and make it happen. Young people can question ‘Well, why can’t it be done by a machine?’ They’re coming in with that mindset, as opposed to fighting being replaced. I think for graduates coming into procurement, they’ve got the opportunity to play with digital which is a wonderful thing.”

Matthias Gutzmann, Founder, DPW Amsterdam

Today, procurement, and its professionals, find itself amid meteoric change. Indeed, its future could be anything. Matthias Gutzmann, Founder of DPW Amsterdam, believes it is time for procurement to create a buzz about the profession. “It’s the best time to be in procurement,” he explains. “It’s the most exciting era to be in procurement and supply chain. We need to get loud about it and celebrate that fact.” 

Author

Sean Galea-Pace

Published

22 January 2024

Estimated Read time

2Mins

New data from Emergen Research suggests the procurement technology market will be worth approximately $17.9 billion in 2032.

Increased adoption of cloud services, artificial intelligence (AI) and process automation are driving strong growth in the global procurement software market.

According to a report released this week by Canadian market research firm Emergen Research, the global procurement software market is expected to register a rapid revenue CAGR of 10.4% over the decade following the 2022 financial year—from a global valuation of $6.67 billion at the start of the forecast period to $17.90 billion in 2032.

The report’s authors found that “increasing use for cloud-based procurement solutions and rising need for automated and efficient procurement processes are key factors driving market revenue growth.”

The talent challenge

In the face of a talent shortage—exacerbated by growing demand and increasingly supply chain complexity—the report expects to see cloud-based procurement systems attain widespread adoption.

“Cloud-based procurement systems have many benefits such as easy deployment, flexibility, scalability, and lower infrastructure costs. This software allows for real-time access to procurement data, leading to better informed and timely decisions,” note report authors. “In addition, this software also makes it possible for companies to access procurement software at any time and from any location, which makes it easier to manage procurement procedures globally.”

Is automation the solution?

Artificial intelligence and machine learning will also support procurement teams in overcoming the pain points presented by the skill shortage, stricter regulations, and supply chain instability. The report suggests that the technologies—if correctly adopted—could be instrumental in “helping companies to automate increasingly complex procurement processes while enhancing decision-making.”

However, high up-front costs may present an insurmountable barrier to entry for some organisations, and a deterrent for others, the report notes. These costs include software licensing fees, implementation costs, training expenses, and any required hardware upgrades. Emergen researchers also note that concerns over data privacy and cyber security could slow adoption of cloud-based solutions.

By Harry Menear

Author

Sean Galea-Pace

Published

15 January 2024

Estimated Read time

3Mins

The five most important challenges for procurement teams to meet in 2024 and beyond, according to Amazon Business.

It’s no secret that procurement is undergoing the same backroom-to-boardroom transformation (dare I say “glow up”) that the IT department went through over the last decade. If every business in 2023 is a technology business, then by the end of the decade, it doesn’t feel unreasonable to claim every business will be a procurement business.

However, with prestige and importance comes pressure. The modern procurement function already faces challenges, from supply chain disruptions and rising prices to the existential need to reduce emissions, which will only grow more complex as the discipline moves close to the forefront of the modern enterprise. It’s no wonder that, while Amazon Business’ “2024 State of Procurement” report found that the majority of procurement budgets (54%) were set to rise next year, an overwhelming number of respondents confirmed that their procurement functions are in need of optimisation.

With 2024 still in its first month, we’ve broken down the five highest priorities for procurement leaders to focus on over the next 12 months, as well as heading into 2025.

1. Retaining and developing existing talent

Lastly, even more important than attracting new talent, the number one priority for procurement teams in 2024 will be retaining the talent they already have, and developing those procurement professionals to marry knowledge of the business and industry with an understanding of new trends, techniques, and technologies.

2. Attracting top talent

A report released by Gartner in December found that more than 85% of procurement directors and executives believe that their teams contain “adequate talent” to meet the future needs of their organisations’ procurement function. The demands placed on procurement professionals are changing, as the adoption of new technologies make the profession more data-driven and strategically focused on business value creation than ever. An evolving profession means attracting new talent will be a vital priority for procurement leaders in the coming years.

3. Reducing purchasing costs

Cost was king before the pandemic and, while procurement teams may have more than just their bottom line in mind, it’s still one of the most important differentiators for the function. Not only is procurement a key driver of efficiency within the modern enterprise, but costs are rising across the industry, with Amazon Business reporting that “Costs and Budgets” were the leading risk factor facing procurement over the next two years.

4. Refining procurement practices across organisations

Even as a newly celebrated discipline with a greater role to play in the modern organisation, a key indicator of a successful procurement strategy is that, most of the time, other departments don’t know it’s there. A successful procurement function empowers other parts of the business to make purchases with autonomy, supporting them in making decisions that are compliant, efficient, and cost effective. Developing the procurement practices that create good procurement habits across an organisation—not just in the procurement department—will be a key priority for procurement teams going forward in 2024.

5. Building more resilient, agile supply chains

If the 2020 COVID-19 pandemic taught us anything it’s that disruption is not a matter of “if” but “when”. Global supply chains—driven almost exclusively by cost-cutting parameters for decades—were decimated by the pandemic, and in the wake of lockdowns it has emerged as hard-won wisdom that the procurement departments of the future need to look at more than cost when building a supply chain. In the Amazon Business report, 81% of respondents revealed that they have internal or external mandates to purchase from different types of certified sellers.

By Harry Menear

Author

Sean Galea-Pace

Published

3 January 2024

Estimated Read time

3Mins

RPA promises increased efficiency, lower costs, and an end to staffing issues, but can procurement teams implement successfully?

Though it’s less frequently associated with automation than its more robot-friendly cousin logistics, procurement is a discipline that’s undergoing a radical transformation.

“Your new procurement employee will work 24/7, never call in sick, rarely make mistakes,won’t complain, and never ask for a raise. Of course, this is not your typical worker, but a procurement software robot—or bot.”

— Automation in Procurement: Your New Workforce is Here, KPMG, 2020

Although it reads like the opening paragraph of an abandoned Nanowrimo project started by someone who’d just finished I, Robot, I assure you this report released in 2020 by consultancy KPMG is an entirely serious endeavour. Although the global clamour to replace employees with robots may have died down a little now that a few million professionals have been dragged kicking and screaming back to the office, the benefits that automating elements of the procurement function could deliver are hard to deny.

RPA is big business and isn’t going anywhere. In 2022, the global robotic process automation market was estimated at $2.3 billion. It’s expected to grow at a CAGR of 39.9% between this year and the end of the decade.

From multinational corporations to the US Department of Homeland Security, robotic process automation (RPA) is emerging as a popular way to manage complexity within a large supply chain, automate repetitive tasks, and enhance the capabilities of a procurement department. The US DHS’ procurement department, for example, spent just under $24 billion across about 60,000 transactions in 2022, and is increasingly handing the responsibility for contractor responsibility determinations, as well as automating tasks for the Customs and Border Protection—allegedly cutting jobs that took an hour down to just a few minutes.

As KPMG’s report stresses, “leveraging procurement bots is the next logical step as organisations look to benefit from advancements in digital capabilities.”

RPA adoption in procurement—the Benefits

  • Added visibility
  • Improved efficiency
  • Reduced costs

Large amounts of traditional procurement processes involve repetitive tasks like requisitioning, purchase order management, checking compliance, andanalysing spend, supplier onboarding, and more can be automated using an RPA bot. This is not only because RPA is getting smarter, but also because businesses’ procurement functions tend to be more consolidated within a single platform that is more closely integrated with the business in a modern enterprise. In a sufficiently digitalised system, there’s little to stop RPA from creating efficiencies by eliminating menial tasks.

Likewise, by integrating RPA into a company’s enterprise resource management (ERP) platform, it gains access to vast amounts of data that can then be tracked, analysed, and used to draw insights faster than a human could hope to tackle the same task. Most modern supply chains comprise several different pieces of specialised software, and making each one talk to one another smoothly can create serious pain points for procurement teams, but RPA can do a great deal to smoothe over the cracks.

RPA Risks and How to Overcome them

  • Data exposure
  • Lack of oversight
  • Misguided direction and overspend

As mentioned above, RPA works best when fully integrated into as much of your system as possible, with access to as much data as you can feed it—especially with modern RPA using AI to make more and more intelligent decisions based on raw and unstructured data sets. Obviously, this creates a potentially huge, glowing weak point in your company’s cyber security framework. Because RPA bots replace human workers, they need access to the privileged information that humans have, and those bots are just as—if not more—vulnerable to attack.

RPA bots can automate a great deal of tasks, but it’s easy to lose track of the fact that they’re just bots and, without proper oversight and direction, they could create inefficiencies, security flaws, and breach compliance—all costly problems, especially if the typically costly technology fails to address the original inefficiencies or issues it was bought to resolve.

Automating procurement processes could undeniably lead to increased efficiency, lower costs, and a more resilient procurement function, but only if implemented with intentionality, and given proper oversight once up and running.

By Harry Menear

Author

Sean Galea-Pace

Published

20 December 2023

Estimated Read time

2Mins

A consortium of volunteers from California have slowly restructured their state schools’ digital procurement process. Next year, it plans to go national.

Procuring digital goods and services for public schools in the US has reportedly been a fraught process for decades. A fractured landscape between underfunded public institutions and a private tech sector has struggled to even accurately assess students and regulators’ needs, let alone finding the right edtech (education technology) to meet those needs. 

This is all made harder by an increase in the amount of technology being integrated into schools—whether that’s good, bad, or maybe both, it’s undeniably expensive. The global education technology market was valued at $123.40 billion in 2022 by Grand View Research. It’s expected to expand at a rate of 13.6% between now and the end of the decade.

The power of education for procurement

Edtech is also a wide umbrella, with examples ranging from apps, overhead projectors, and chromebooks for students to thousands of screens, digital signage, and “content management platforms” like those found in Christopher Columbus High, an all-boys prep in Miami which the South Korean tech giant Samsung has transformed into a “connected campus”. In the US, procurement functions working for individual school districts are often forced to work with smaller budgets, fractured regulatory landscapes, and to compete with private schools with larger budgets that drive overall prices in the sector up.

Tired of inefficient processes and uneven contracts, a consortium of procurement professionals working in the California public school system are looking to change the edtech procurement process in the US.

The Education Technology Joint Powers Authority (Ed Tech JPA) was formed “out of frustration” with the existing system, or lack thereof, in 2019. The volunteer group, made up of procurement specialists and school purchasing professionals, has spent the past four years streamlining procurement for digital products and services, leveraging the buying power of multiple schools to negotiate prices, buy in bulk and save money.

From a grouping of school districts located in Irvine, San Juan, San Ramon Valley, Fullerton, Clovis, El Dorado County and Capistrano Unified districts, the consortium has grown to include 163 member districts that educate around 2.3 million students. The organisation has been awarded 23 procurement contracts to date, and is growing rapidly in education.

At the California IT in Education (CITE) conference, held in Sacramento during November, JPA President Brianne Ford, predicted that next year would see the program expand beyond California and make group bargaining procurement for edtech a national feature of the US school system.

By Harry Menear

Author

Sean Galea-Pace

Published

7 November 2023

Estimated Read time

4Mins

Scott Mars, Global Vice President of Sales at Pactum AI, discusses his organisation’s solution amid procurement’s digital transformation.

AI. It’s everywhere, all at once.

Procurement is one of the leading industries when it comes to embracing new solutions and ways of working. The space is waking up to the massive value that can be created through autonomous negotiations. And making a name for itself in the procuretech ecosystem is Pactum.

Pactum is an AI-based system that helps global companies to automatically offer personalised, commercial negotiations on a significant scale. The system adds value and saves time for both the Pactum client and their negotiation partner by aligning values to determine win-win agreements via easy-to-use chat interface that implements best-practice negotiation strategies.

Scott Mars has been the Global Vice President of Sales at Pactum AI since December 2022. He explains that his organisation is always striving to grow and expand its service offering. “At Pactum AI, we’re defining the space,” explains Mars. “We’re a creator for autonomous negotiations, we work with some of the world’s largest organisations and we’re really looking to expand the pie. The name Pactum originates from the Latin definition of an informal agreement between two parties. We can do up to 10,000 negotiations at once and unlock hundreds of millions of dollars of savings for our clients. We’re typically looking at tail-end suppliers and tail-end spending that no one’s touching. In many cases, that represents 80% of the negotiations.”

Exponential savings

Mars highlights a recent example of incredible savings achieved through Pactum AI’s solutions in a short space of time. Recently, Pactum worked with a travel and leisure firm in the UK to introduce its autonomous procurement solution. “We conducted a very brief implementation over two weeks, which led to a much larger enterprise rollout,” he discusses. “The CPO was actually on holiday while we implemented the autonomous procurement solution with his team. This involved optimizing payment terms with some of his long-tail suppliers.

“When he got back from holiday, there were 50 DocuSigns sitting in his emails, all related to extending payment terms. Many of them were remarkable successes, resulting in an average extension of negotiated payment days by more than 30 days and a 3% average gain from negotiated discounts and discount periods. This means we secured an average discount of 3% on each invoice when paid within the agreed-upon discount term. Our unwavering commitment to enhancing overall value not only positively impacts our clients but also extends to their suppliers, creating a win-win scenario for all involved.”

With AI having such a transformative effect on procurement, achieving efficiency and cost-effectiveness is more streamlined than ever through digital tools. But being alert to new threats, particularly in a space that is so open to innovation, does bring data security concerns. Mars recognises the challenge of cybersecurity and affirms Pactum ensures the safety and confidentiality of sensitive procurement data remains secure in chatbot interactions.

Digital future

“Everything is hosted in a private cloud, so each customer has a private instance. It means all of our data is secure from a generative AI perspective,” he tells us. “Large language models (LLMs) are great, they’re creative but they have their problems which means we’re only using safe LLMs. All of our negotiation design is kept in-house, and we use rule-based explainable AI which means all the data is secure per each customer. We have the largest repository of behavioural science, so those learnings are shared across our customer base, but all the customer data and all their negotiations are private to each customer.”

Looking ahead, Mars is excited about procurement’s digital future and explains Pactum AI’s vision is to transform global commerce. “At the moment, we’re only doing buying, but we are looking to move into the sales side as well,” he discusses. “Large companies have a huge footprint. For example, the Fortune 500 is 66% of the US economy. The plan is for us to move into selling which will give us the scale to transform global commerce. It’s definitely a grand vision, but we do feel that we’ll move from buying into selling and transform global commerce.”

For procurement generally, Mars is adamant that the space is in its “golden age” with the magnitude of vendors within the procuretech ecosystem hitting unprecedented numbers. “I was speaking with a CPO recently and he said 10 years ago you could name the procure to pay and ERP vendors on one hand, now there’s hundreds of them and all these periphery vendors for AI and spend,” he reveals. “The most visionary procurement leaders aren’t just looking at these all-encompassing solutions, they’re bolting on niche solutions into their ecosystems to make their teams more efficient. I think we’ll start to see a consolidation in the coming years of all these little companies into a few larger players to do really an end-to-end type solution. I expect someone to come up with a solution to close the loop in procurement.”

Author

Sean Galea-Pace

Published

24 October 2023

Estimated Read time

5Mins

CPOstrategy explores this issue’s big question and questions whether procurement is in need of a rebrand in order to get to the next level

Does procurement need a rebrand?

Procurement’s transformation in recent years has been exponential. 

As an industry which has embraced technology at scale, there is a greater clarity in spend, expanded category coverage and increased return to shareholders. But is there enough awareness about procurement and is it doing itself a disservice? Procurement professionals aren’t often known for being great marketers. But in today’s fast-paced world, being sure an audience can understand something quickly is essential. Without strong brand potential, procurement is risking not living up to its full potential.

For example, procurement’s brand is often left to customers to work out. To many, people think that procurement is solely about purchasing or negotiating contracts. However, they are often unaware just how innovative and exciting procurement can be. From some sections, procurement is still sometimes thought of as some back-office function tucked away out of sight. But now, particularly in the face of massive challenges over the past few years, procurement has become so much more.

Solving talent shortages

Shaz Khan, CEO and Co-Founder of Vroozi

In a recent CPOstrategy Podcast, Shaz Khan, CEO of Vroozi, discussed how rebranding procurement could help solve its talent shortages. He believes the space must be more strategic than just finding themselves there one day. He told us how corporate procurement is currently in a “golden age” and that by making job roles more relatable it could encourage fresh perspectives to enter the industry on purpose instead of by accident. “When you say you work in procurement, try explaining that to your family or friends because it takes a while! In reality, we as human beings in our day-to-day lives are sourcing every single minute of every day,” he explained.

“We are sourcing where our dry cleaning is, we’re negotiating at the farmer’s market for carrots. When we look at corporate procurement, we need to ask ourselves, do we need to be rebranding this function? We need to get more individuals not just falling into procurement by accident and make it more measured and predictive.”

What’s holding procurement back?

Executives “falling” into procurement has long been a common joke shared among those in the industry. But in what other line of work does such a high proportion of the workforce accidentally stumble upon their chosen industry and end up staying? It is both a compliment and an achilles heel to procurement but ultimately that method leads to periods of talent shortages which is what the industry is experiencing today. Procurement’s talent problem is not just down to one thing, given how COVID-19 impacted the industry and people’s decision to opt for a career change in the post-pandemic world. In order to address the problem, it all starts with education.

Pauline Potter, Director of Procurement at Evri

“I certainly didn’t know that this was a profession when I was at university and I don’t think I’m alone in that,” explains Pauline Potter, Director of Procurement at Evri.

“It all seems crazy to me because I genuinely think this is such a fantastic career path that people can take. It’s hugely variable with loads of paths you can go down and you can apply a similar skillset to all kinds of businesses. I think the first thing procurement can do to address the talent shortage is raise the profile when recruiting.

Nicolas Walden, Associate Principal at The Hackett Group, agrees in the importance of rebranding procurement but also believes that a lack of education could be holding procurement back. “I was talking to a CPO recently and he was saying when he looks across Europe, there’s only a small number of universities that actually offer degree level qualifications in procurement or supply chain,” he says. “I know from colleagues in the United States that there’s many more universities there that offer this level of education. This can create the entry point of a pipeline of talent for the future. This means they’ve got the skills, mindset and the training in what we need in terms of modern procurement.”

Recruitment in procurement

Khan highlights the opportunity procurement has to redefine how it presents itself to the workforce of tomorrow. It is his belief that getting rid of the misconceptions surrounding procurement could hold the key. “Higher education and the lack of programmes going forward after graduating is a real problem,” he adds. “Corporate procurement can be an incredible entry level area because it centres around data. You’re leveraging cutting edge toolsets and are making an impact on the company – your job isn’t boring. It’s not pushing paper back and forth or getting on phone calls with suppliers to talk about delivery schedules.”

Fadi El Mouallem

And procurement roles don’t just have to apply to ‘procurement people’. Global procurement executive Fadi El Mouallem affirms that people could add their valuable transferable skills from other industries and be successful within the space. “I like to attract talent from different industries, not just procurement or finance,” he discusses. “I’ve had the likes of project managers, salespeople and engineers come into procurement and they all made a career out of it.

Success is making them feel that they belong, so they can grow into this space and make an impact. If they choose to leave procurement later, then that’s fine.”

Procurement, like many industries, has been through a tough time. But as a sector very much at the forefront of technology innovation the future looks equally exciting and bright. By rebranding procurement, being open to people from all walks of life and empowering the talent of tomorrow to emphasise that this could be the place for them to thrive, it could bring positive change that will stand the test of time.