Payment Professionals See Technology Driving Sector Growth, But Blockchain Isn’t at Forefront - Study
August 15, 2018 07:32:57
A survey among finance and treasury professionals has found that real-time payment systems are seen as one of the significant innovations in the financial industry, with technology expected to further drive the commercial payment sector.
The study by TD Bank involving 390 industry professionals, including payments system stakeholders from business end-users, and financial and technology services organizations, showed that 20% of the respondents believed that artificial intelligence and machine learning will create positive change in the industry, while new and advanced technologies such as blockchain and biometrics are not yet at the forefront.
"One of the largest impediments to today's payments industry is that change is happening faster than organizations can realistically accommodate it," said TD Bank’s head of corporate products and services Rick Burke. "Sending and receiving corporate payments is a complex process and one that it is not yet as nimble as consumer payments. As more CFOs and treasurers use immediate payment schemes in their financial transactions, the demand for commercial availability will also rise, and financial institutions and businesses need to be prepared to accommodate that expectation."
The payment professionals said the developments in technology provide an opportunity to revamp the outdated system. They called out the need to rejuvenate internal infrastructure systems which they see as one of the critical roadblocks to fully implementing digital payment strategies. At least 36% of the respondents said smaller banks or corporations must accept the need to modernize their "legacy infrastructure" to support developments.
A vast majority of those surveyed are in agreement that financial institutions must evolve and integrate mobile application for businesses to improve the banking experience.
Wary of cryptocurrencies
However, the payment experts hold a strong view against cryptocurrency, TD Bank said. This despite the hype the new asset class is getting from the media. A total 64% of the respondents said they do not consider digital currencies as a legitimate form of digital payment. However, only 4% of them noted the controversies surrounding digital assets as the most significant challenge.
In an article published in Cryptovest on Tuesday, T.OS said that one of the significant challenges in accepting virtual coins as a legitimate digital payment system is because cryptos have failed to be widely accepted currencies because they were not used as a means of payment in various real-life transactions involving goods and service.
Instead, these digital currencies were used for trading that specializes in crypto exchanges that often compete against each other.