TREND 1TREND 2TREND 3TREND 4 TREND 5 GEN Z RISINGUX IS THE NEW GOLDMOBILE HIT ITS GROOVEREWARDS REVOLUTIONTHE NETWORK EFFECT TREND 5 THE NETWORK EFFECT The power of the network is essential to win the future of payments. TREND 6TREND 7TREND 8TREND 9 TREND 10 After years of an on-again-off-again love affair with collaboration, banks are FINTECH AND BANK FUSIONAN ARMS RACE IN CODEPAYMENTS EVERYWHEREFRAUDSTERS INNOVATE TOORIP AND REPLACE REQUIRED smitten again. They are embracing connected networks to multiply impact, collaborating in disruptive, new ways. By working within ecosystems, payments players are poised to create the next generation of payment rails, bank networks and alternative forms of payment. Collaboration has come and gone among traditional payments players since the industry’s early years. At the dawn of the digital age, banks were moving away from collaboration. Many were slow to embrace the potential of digital technology to provide an elegant backbone for new ways to collaborate. Take banks’ initial approach to person-to-person (P2P) payments. In the early 2000s, banks tried to build their own P2P solutions to take on PayPal with little success. Today US banks are launching Zelle®, one API-enabled network of more than 30 partners to deliver real-time payments across thousands of banks and millions of consumers.5 Led by market and regulatory forces, collaboration is bigger and bolder than ever before. It goes beyond a mutually beneficial relationship between two parties. The industry’s “new” collaboration reflects a fundamental premise. That the power of the network grows exponentially with the number of participants. Network innovation will surge as technology continues to drive competitive advantage in the industry. Because tapping into the network allows companies to multiply capabilities and reach without building and investing from scratch. Zelle is just one example of the network effect at work in payments. Both MasterCard and Visa have expanded the use of partnerships, open APIs and other tools and technologies to deliver more customized and cross-device payments experiences. The Enterprise Ethereum Alliance brings together technology giants, financial and payments powerhouses, startups and governments to support Ethereum, a blockchain-based platform like Bitcoin. Collaboration like this will continue in the future. Because from now on, it will take a village to respond to and create change in payments. 8 | DRIVING THE FUTURE OF PAYMENTS 10 MEGA TRENDS Copyright © 2017 Accenture. All rights reserved.