Faster, smarter, safer: what to expect from payments in 2018

1. Making Real-Time Payments a Reality

The European Union put the payment pedal to the metal late last year with the launch of the Single Euro Payments Area (SEPA) Instant Credit Transfer (SCT Inst) scheme. A partnership between 600 payment service providers from eight European countries, SCT Inst enables near real-time, cross-border payment disbursements. With more countries expected to join SEPA in 2018, it is easy to see why folks are excited by the business implications. Imagine a world where global freelancers can get paid same-day — well, that day might be closer than you think.

2. There’s Power in Partnerships

After 18 months of preparation, it is finally here: the second Payment Services Directive (more commonly known as PSD2) and its mandates are enforceable by law as of January 13, and the legislation’s impact on payments is already palpable. One of the biggest shifts we have seen thus far? Partnerships, specifically with companies that sit outside traditional payments ecosystem. Last year, for example, PayPal expanded its services to include peer-to-peer payments with Facebook and Skype — and who could forget WeChat Pay’s meteoric rise in popularity? Competitive partnerships will continue to form throughout 2018 as more alternative payment and payout technologies become mainstream.

3. Removing Borders from the Fintech World

Speaking of WeChat Pay, get ready to see an increased demand for Chinese wallets in the West this year. Not only did WeChat launch its payment service in the United Kingdom late last year, but Tencent — WeChat’s parent company — has come state-side with an office in San Francisco. As population and capital continues to flow westward, all-encompassing platforms like WeChat will continue to conquer the world, improving everything from communications to cross-border money transfers.

4. The Internet of Things (in Your Wallet)

If you were paying attention last year, you may have noticed that financial service providers have started to experiment with the Internet of Things (IoT). Both Visa and Mastercard spent 2017 partnering with and/or acquiring companies focused on smart, contactless, and connected payments technology. This interest in IoT will only continue to grow in the new year, as ongoing improvements to personal AI assistances like Apple’s Siri and Amazon’s Alexa begin to have a broader impact in business settings. Voice-directed payments are already becoming commonplace — who knows what advancement could be next?

5. Earning Flexibility and Improved Access

Bi-weekly earnings pretty much became a thing of the past in 2017. Instead, the idea of earning flexibility has come to the financial forefront, giving contractors more convenient access to their earnings. For example, independent online sellers and car-sharing drivers are increasingly being given the option to pay a little to access their earnings ahead of schedule, or borrow money to cover business costs. Fintech platforms are starting to take notice of this trend, and it goes without saying that digital marketplaces and online platforms will continue to pursue earning flexibility come 2018.

About the author

Luke Trayfoot is the Director of Business Development in Europe at Hyperwallet, a leading global payouts provider for independent workers, sellers, and distributors. Previously, Luke served as Head of Partnership Sales for World First. Luke holds a Master of Laws degree from the University of Westminster. 

About the company

Hyperwallet’s payout technology provides two-sided marketplaces and digital platforms with a frictionless, transparent, and reliable way to manage global payouts and enhance their sellers’ experience. With Hyperwallet, platforms can offer payout optionality across multiple currencies, enable financial management tools for their sellers, and streamline identity verification and compliance screenings – all through a single integration. Hyperwallet has offices in San Francisco, Austin, Sydney, London, and Vancouver. You can learn more at www.hyperwallet.com.