The payments industry continues to evolve at a rapid pace, driven primarily by consumer choice, advancements in technology, and increased user-centricity. This is forcing many providers to accelerate initiatives that add new capabilities that not only fill current needs but also provide access to opportunities within adjacent areas. 

The coming year is expected to be one when consumers’ demand for choice will continue to exert pressure on the payments ecosystem to deliver the capabilities necessary to power deeper experiences. Delivering these experiences will force providers to speed up the pace at which products are launched through either organic efforts or partnerships with other firms. The latter requires a renewed focus on interoperability as a way to make it easier for providers to integrate with each other and also serve as a proactive measure that will forestall the Consumer Financial Protection Bureau’s recent remarks1 regarding pro-competitive regulation within financial services. Javelin Strategy & Research expects that established providers, fintechs, and Big Tech will look to collaborate with greater frequency in an effort to prove to the CFPB that the payments industry is fair and competitive. And although the CFPB’s guidance will certainly play a role, it will be a catalyst that benefits forward-looking organizations that have been promoting interoperability within the industry in an attempt to keep pace with consumers’ rapidly changing preferences.