The future of digital payments was discussed at a Westminister eForum last week, with KPMG stating that UK companies desperately need a new money transmission system that will perform better in managing the abundance of electronic payments being made today.
The basis of KPMG’s warning is that current systems are simply not suited to the electronic payments era. Revolving around the transferring of cash, the current systems restrict speed and produce problems such as invisible economic activity and money laundering. Businesses also encounter limited transactional value-add and innovation constraints.
“I don’t think the solution lies in simply optimising existing instruments involving existing infrastructures and repackaging today’s business models. It also involves truly innovating the way payments are conducted with new entrants, disruptive ideas facilitated and fostered, and much greater accessibility to the market” said Mark Hale, head of payments at KPMG.
Continuing to actively research the latest industry updates and development, a spokesperson from SmartDebit commented: “Electronic payments provide value for businesses in terms of efficiency, cost savings, improved cash flow and control as well as integration into ERP systems such as Sage or SAP. KPMG’s calls for more innovation within the industry are welcomed as research suggests that the UK is on the road to becoming a cashless society.” He continues, “Consumer and business expectations of payment products will only continue to grow as new solutions benefit their lifestyle or company operations. For this reason, both governing bodies and payment services need to collaborate on regulations to ensure the industry is competitive and innovative whilst retaining integrity.”
As the demand for immediate payments implementation grows in the United States, Iliad Solutions have identified one of the largest risks to face the payments industry over the next few years.
Barclays has signed contracts with six of the fintech startups that just graduated from its second New York accelerator programme.
Company card killer Pleo has raised $3m in new funding as it prepares for public launch in the UK and Denmark.
Cheques are become less and less common in the UK according to new research from global market research firm Mintel which claims contactless card use has overtaken cheque payments in the UK for the first time.