Business models in a consolidated and converging payments world

Abstract

The payments business is undergoing a significant transformation: markets are integrating regionally across Europe; processors are consolidating scale; bulk and urgent payments are converging; regulators are questioning the traditional economic framework; and retailers and mobile operators are on the verge of becoming payment service providers. These developments in the European payments landscape could become the inflection point for a payments end-game beyond Europe. This paper examines the forces shaping the payments landscape, analyses the building blocks of the emerging end-game, and examines five successful business models to enable payment institutions to be in position for this outcome.