Since Traxpay was founded in 2009, we’ve been consistently articulating one key message: Innovation in B2B payments is urgently needed and long overdue—but the innovation that’s required is never going to come from banks or traditional technology vendors. It’s going to come from a new breed of tech innovators with banking expertise.
We are gratified to see that today we are far from alone in our opinion. The 2013 edition of the Payments Innovation Jury Report is out, and it confirms that leaders in the payments sector overwhelmingly believe new market entrants are best at driving payments innovation.
In fact, a whopping 72 percent hold this view, according to the report. Only 4 percent thought retail banks were best at driving payments innovation.
This year’s Jury includes 25 experts from the payments sector, representing 13 countries on 5 continents. Members of this select group have all held leadership roles at major payments organizations including global banks, major processors, international card schemes, and technology firms. The vast majority have lived and worked in multiple countries and all are still directly involved with payments innovation.
What’s the reason for the pessimistic attitude toward the innovation capabilities of banks and legacy tech vendors? Simply put, it’s too hard to fix legacy architectures, systems, and processes. It’s far easier to start fresh and re-think how to optimize B2B financial flows. In the words of Jury members (who participate on the condition of anonymity):
“New market entrants are neither constrained by legacy systems, nor by an understanding of how things should be done.”
“New market entrants bring a fresh perspective and usually have no status quo to defend.”
“One of the key challenges of innovation is historical legacy and mindset…it limits the ability of incumbents to really think innovatively.”
The significance of these opinions—and the growing consensus that successful innovation in payments will come from newcomers—should be clear to B2B commerce companies, digital marketplaces, settlement networks, and even independent software vendors (ISVs) and systems integrators (SIs).
If you want to reap the rewards of smoother B2B financial flows—such as instant payment execution, 24/7 anytime/anywhere transactions, complete information about each transaction, real-time visibility into cash flows and liquidity, higher transaction security and better control over your working capital—you need to stop looking to banks and tech behemoths for innovation. You need to partner with a true innovator with proven B2B payment technology and real-world banking expertise.
You need to take a closer look at Traxpay.
Making the move to accelerated, 24/7 B2B payments does not have to be a long, expensive, disruptive IT project. The technology is already in place today… just not from the usual sources. Traxpay is ready to help companies transition to a more productive B2B payment system—and new revenue streams and business advantages—right now.
In my next post, I’ll address Traxpay’s role in another interesting topic of the 2013 Jury Report: the biggest tech trend that’s driving innovation in payments.