The changing regulatory landscape provides an insight into what governments are prioritising for the future as they seek to represent their citizens. We see that sustainability, protection, sovereignty and innovation are currently the key drivers for governments around the world.
Payments is a highly regulated industry. Of course, compliance with regulations is mandatory, but businesses that focus only on maintaining this compliance may be missing out on the opportunities that many regulatory changes create.
Understanding the details of the multiplicity of payment regulations is essential; the challenge is how users can implicitly trust every transaction.
Trust underpins all transactions. It is conditional on all parties involved in the transaction having confidence that the outcome will match their expectations (or they will have some recourse to resolve any issues that do occur).
Consumers must be able to trust that when they purchase goods they will receive them; if half of the orders they place are never delivered, they will most likely stop purchasing from that vendor, even if refunds are provided.
Merchants must trust that they will receive the money that consumers pay them; if too many transactions do not arrive or are for the wrong amounts and require manual intervention to resolve, then they will look for alternative ways to collect their income. Merchants also need to be able to trust that, for example, someone is above the legal age limit for buying certain goods (e.g. alcohol).
With accelerated digitalisation, more and more data is being collected about individuals and companies. Every transaction generates a huge number of data points. With this state of affairs, there is a need for trust that the data will be stored securely and not misused.
People also want to know that claims about the provenance or sustainability of products and services they are offered are factually correct.