Mobile payments are rapidly developing but tech providers need to design responsibly - Claire Maslen

We can’t talk about advances in Payments without mentioning Central Bank Digital Currencies (CBDCs).

Despite consumer concerns around privacy, security and resilience, this area is expanding and has the potential to transform the global financial system. 19 of the G20 countries are now in advanced pilot stages and The Bahamas, Jamaica and Nigeria have fully launched their CBDCs.

BIS Innovation Hub has successfully completed a trial exploring the cross-border implications, involving multiple markets. Be it consumer or wholesale use cases, the need for clear and transparent communications from all central banks will be essential in helping to encourage adoption and develop trust with consumers.

The term Social Commerce has been creeping into our vocabulary over the past couple of years. Following my favourite influencers, I can see what my tribe is endorsing, and then with a click or a swipe, I can select an item and complete the purchase through whatever platform I’m on. Sounds great. But this is not without problems.

Unfortunately, one of the fastest growing areas for online fraud is driven through these social platforms. With fake accounts, fake reviews, fake products, it’s hard to know who we’re supposed to be buying from. This plays into the debate for online and physical identities. Identity of people, of businesses and of things. Maybe another argument for wallets.

Artificial Intelligence (AI) is here. Many businesses are using AI internally for predictive analysis to help route payments, monitor cash flow patterns and identify fraud, or for improved customer support with virtual assistants and chatbots, taking the load off humans.

But what happens when AI is in the hands of the consumer? Imagine your wallet being smart – a wallet which can nudge you in the right direction to use a particular payment method, in a particular merchant; or a wallet that gives basic financial advice on money management as you roll from one paycheque to another. For me, this is one of the most exciting developments. But it’s not without challenges. Could we see consumer AI wallets, conflict with merchant payment orchestration? I think there is a potential for tension here and unless this is clearly defined, it could just switch everyone off even bothering to use the tech that is available. I’ve had the privilege of watching both the mobile and payments industries grow and change over recent years. Personally, I think we’ve barely scratched the surface in terms of the potential for personalised payment experiences. But as consumers take steps towards smarter experiences, it’s important we look to the infrastructure players and technology providers to design responsibly and reliably, and the regulators to enforce the legislative measures to protect individuals and businesses alike.

Claire Maslen is payments and commerce advisor at the Mobile Ecosystem Forum.