Racing toward the future of payments?

A few weeks ago, a reporter asked me how I see the future. I smiled as I told him the future is very hard to predict.

Predicting the future is difficult and risky, very much like placing a bet on a race horse and wishing for the best. Of course, the scene is different on the racetrack. The winning horse doesn’t predict the future; it sees the way forward and moves as fast and as strongly as it needs to cross the line and seize the victory.

Today, I might have answered that reporter differently and here is why ...

A few days ago, we received the news that the regulatory authorities have cleared Mastercard's acquisition of VocaLink. This will be a transformational acquisition that will change our business, our company and our future as we race toward a new future for payments.

Winning is not easy on the racetrack or in business. But that unique combination of boldness, agility and perseverance can set you apart.

Boldness

For over 50 years, Mastercard has been enhancing cards payments, off and online. We know, we still have a long way to go as more than 85% of retail payments worldwide are still cash-based.

 With our VocaLink acquisition, we will be powering card as well as bank account-based transactions with the best-in-class technology - ensuring that more people, businesses and governments can pay and get paid electronically.

 People, businesses and governments should be able to easily decide how to pay and get paid. They should be able to pay their handyman, their rent, send money abroad or complete transactions in any number of scenarios in a way that’s most convenient.

 This acquisition is a first for the industry, and it cannot get more boldly transformational than having two technological powerhouses combining their strengths to redesign the sector.

Agility

In a world changing at the speed of thought, agility is an essential trait for businesses everywhere.

 While based in the UK, VocaLink technology has already been successful in other countries – allowing people, businesses and governments to send money between bank accounts in real-time.

Think not just person-to-person payments but also social security benefits, salary and bill payments – happening quickly, seamlessly, and securely. Now, we can use Mastercard's global footprint and payments expertise to bring this real-time technology to more people and places.

 As Mastercard joins forces with VocaLink, our customers will have a comprehensive set of offerings ranging from payments technology like real-time bank account payments (also known as “fast ACH” or “faster payments”) to card payments and services like fraud analytics that make all types of payments more secure.

 Perseverance

When it comes to their money, people want choices that provide greater control, convenience and access, and we will continue to strive to offer them these choices.

 With one single proven partner who can meet all their payment needs, Banks will from now on experience greater innovation that will allow their customers to pay across all channels, increasing engagement and driving value.

 Governments will have the ability to drive greater efficiencies and spur innovation, while providing more opportunities for financial inclusion.

Retailers will have access to more robust services and more choice in payment solutions they can accept.

And, finally, People will have more choice in terms of payments with enhanced speed and security.

 Bringing card- and account-based payments under one roof is an important first step, but it doesn’t stop there. There is more work to be done, but we have the perseverance to do it.

Today, Mastercard is remodeling the landscape of the payments industry, taking it beyond the confines of the known to unprecedented horizons; translating innovation into bold, agile and persevering strategies that unlock a new future.

 I guess it is hard to predict the future, unless you work at Mastercard. At Mastercard, we’re on the racetrack making the future happen.