Panel Discussion: Evolution and Disruption in the World of Payments

By Eloise Pinto, KPMG

On April 17, 2019, FWSF hosted a panel discussion at KPMG that focused on trends and innovations in the payments industry. As consumers and businesses are shifting to cashless transactions, the payments industry has become a vital way for money to change hands in our society. Erin McCune, a partner at Glenbrook Partners, LLC, moderated the panel. Panelists included:

• Kelly Alpert, vice president of Visa Direct Product at Visa
• Jeanne DeWitt, head of North American Revenue & Growth at Stripe
• Katie Franklin, director of Emerging Payments at Walmart Inc.
• Peggy Mangot, Sr. VP of Innovation Group at Wells Fargo

The panel brought together different segments of the payments industry, which provided diverse perspectives for the audience into how innovation is impacting their businesses and what payment trends are happening. From the payment novice to the self-proclaimed payment “geek,” the event drew a large crowd that peppered the panel with probing questions. Key takeaways included:

• Shifting Consumer Behavior – Consumers are shifting to more digital modes of payments, resulting in an observable decline in cash and check payments. This trend is expected to continue, and consumer retailers are hoping to meet consumer expectations (e.g., Walmart Pay).
• Higher Consumer Expectations – Consumers and small businesses have higher expectations about how and when they get paid. Rather than waiting a week or longer to get paid, consumers / businesses want to get paid faster. The payments industry is responding to this need and offering services where payments can be received daily (or in real time). Additionally, the payments industry is offering more “push to cart” transactions, where businesses can push money to consumers; “push to cart” transactions are helpful in processing insurance claims.
• Advantages for New Entrants – There was a discussion about whether it is easier for new entrants to enter and expand into the payments space than it is for traditional banking institutions and financial services companies. Panelists noted how new entrants have the benefit of starting off fresh (i.e., they can set up their platform based on current technology versus having to update existing systems) and how new entrants / startups are more adept at attracting new customers.
• Acting as Payment Facilitators – Companies have been assisting new businesses with payment collection by acting as a facilitator to these new businesses.  This results in the new business not having to comply with all the regulatory requirements that are imposed upon payment and traditional banking institutions.

At the conclusion of the event, Robert Ruark (principal, Financial Services, Strategy, KPMG LLP) joined the panel and provided a brief presentation of the payments industry as a whole.
 

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FWSF has other exciting events coming up, check out our Events Calendar.

Also, we are always looking for attendees who want to provide a summary of the event. If you volunteer, you can attend free of charge. Contact Marianne LaPorte, co-chair of MarComm, if interested: mariannepri@hotmail.com.