The PAYTECH Book

Fifteen Ways in Which Our Digital Future Will be Shaped by PayTech

By Tony Craddock

Director General, Emerging Payments Association

Rapid changes in technology, consumer behaviour and regulations are creating a new digital economy in every part of every country in every region of the globe. Inspired by reading over 60 chapters of The PayTech Book, and conversations with many of the Emerging Payments Association’s passionate payments people, I am excited to share three “Big Ideas” – and a further 12 – in this chapter, which are a sample of the fresh thinking and original perspective in the Emerging Payments Association (EPA)’s community of entrepreneurs, thought leaders and innovators.

The Three Big Ideas From the EPA

Unnecessary friction will almost disappear but will be added back in where valuable

As in the telecommunications industry, the dominant pricing model in payments will move from a per-transaction basis to a subscription basis. In time, technology and competition will drive the cost of processing a transaction down towards zero. Other sources of friction, such as the time taken for a transaction to be completed or the need for users to learn different ways to buy things across different payment platforms or at different stages in the buying process, will also be significantly reduced.

But friction in some transactions is both necessary and welcome. Rules will be adopted that help to ensure there is the right amount of friction in every transaction. This ensures ...