Pay360 Highlights

I really enjoyed attending The Payments Association Pay 360 2023 event last week. It was the UK’s largest payment event with almost 2,500 attendees over the two days. The conference brings together some of the leading players in the field to share their views on the industry's current state and future outlook. After a few days for reflection, there were three trends that stood out to me:

1.????Importance of Partnerships

2.????Card Programme Profitability

3.????Operational Efficiency?

Partnerships remain a fast-track to functionality and profitability.

It was evident at Pay360 that many UK fintechs are looking at partnerships as a key lever to survive and thrive in the current market conditions. Partnerships enable companies to tap into the expertise of niche players offering specialized services. They also help to build trust with customers allowing partnering companies to mutually increase revenue and lower average customer acquisition cost through upsell opportunities. Moreover, partnerships provide valuable insights into new markets and customer preferences, allowing businesses to improve overall customer experience, with significantly reduced time & financial costs when compared to internal innovation. Partnerships are an effective way for companies to access new opportunities and expand their offerings while benefiting from shared expertise and resources.

Card programmes are not just for show; they must bring functional and financial benefits

Customer numbers are no longer a strong enough metric on their own, and banks and fintechs are looking for new ways to add profitability to programmes. One way to achieve this is by adding multi-currency wallets to an existing card programme. Foreign exchange (FX) functionality can add to profitability by allowing customers to convert currencies and pay fees for the service. This opportunity is often missed by banks and fintechs because accurate daily reconciliation of scheme fees is challenging. By adding better FX functionality to their debit and credit card programmes, banks and fintechs can increase revenue and profitability, while also providing added value to their customers. It is clear that there is a growing focus on finding new ways to make card programmes profitable, and the addition of FX functionality is likely to become an increasingly popular strategy in the fintech industry.

Operational Efficiency gives fintechs a competitive advantage

Operational efficiency has become critical in the banking and fintech industry. It allows companies to reduce costs, which is essential for maintaining profitability and staying competitive in a rapidly changing market. By streamlining processes and automating tasks, companies can improve their bottom line, freeing up resources and eliminating inefficiencies. In doing this, companies can focus on creating value for customers and growing their revenue. Increasing operational efficiency is crucial in the banking and fintech industry right now, as it enables companies to reduce costs and manage for success in today's dynamic marketplace.

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The Pay360 event in London provided valuable insights into the latest trends in the fintech industry. From the shift in how companies view diversification/contingency planning, the consistent importance of partnerships, and increased focus on profitability metrics, the industry is undergoing significant changes. Companies that adapt to these trends and innovate to stay ahead of the curve will be the ones that succeed through the changing economic cycles.

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Cambrist at Pay360

Finally, across the three days, I attended approximately 20 meetings with suppliers, customers, partners, and new contacts. In the evening of day 1, I was kindly invited to attend the Payment Industry Group event where we caught up with new and existing industry friends. ??

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If you would like to discuss how Cambrist supports Issuers, please get in touch. Our multi-currency expertise, and solutions, are helpful in delivering profitable FX functionality. We also support increased operational efficiency for card programmes through our Treasury-as-a-Service offerings. I’d be very happy to chat through over a no-commitments coffee or call.

You can reach me on:?

[email protected]

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www.cambrist.com