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The only globally-crowdsourced book on the future of payments ("PayTech"), offering comprehensive understanding of a rapidly evolving industry at the centre of global commerce


The movement of money between individuals, organisations and governments is crucial to the world economy. The payments industry has undergone immense transformation - new regulations, technologies and consumer demands have prompted significant changes to the tools, products and use cases in payments, as well as presented lucrative opportunities for entrepreneurs and FinTech professionals. As payment technologies become faster and more efficient, companies and investors are increasingly favouring PayTech innovation due to better customer experience, increased revenues and manageable risks. The PAYTECH Book brings together a diverse collection of industry experts to provide entrepreneurs, financial services professionals and investors with the answers they need to capitalise on the highly profitable PayTech market.


Written by leaders in the global FinTech and payment sectors, this informative volume explains key industry developments and presents valuable first-hand insights from prominent industry practitioners. Contributors include advisors and consultants to the payments and financial services industry, entrepreneurs and business owners utilising cutting-edge PayTech capabilities, academic researchers exploring the social-political-economic impact of PayTech and many others. Detailed chapters cover essential topics such as cybersecurity, regulation and compliance, wholesale payments and how payment systems currently work and how PayTech can improve them. This book:





Defines PayTech and identifies its key players

Discusses how PayTech can transform developed markets and accelerate growth in emerging economies

Describes how PayTech fits into the larger FinTech ecosystem

Explores the future of PayTech and its potential as an agent of social change and financial inclusion

Provides diverse perspectives on investment in PayTech and what consolidation and expansion will look like



The PAYTECH Book: The Payment Technology Handbook for Investors, Entrepreneurs and FinTech Visionaries is an indispensable source of information for FinTech investors and entrepreneurs, managers from payments companies and financial services firms and executives responsible for payments in government, corporations, public sector organisations, retailers and users of payments.

The PAYTECH Book: The Payment Technology Handbookfor Investors, Entrepreneurs and FinTech Visionaries

Preface viii





About the Editors xi





Acknowledgements xiii





1. Payments Explained





Payments are Getting Political Again 6





Money: A History of Gods and Codes 11





Payments Explained 14





From Barter to App - How Payments Have Changed 17





Do We Still Need to Pay? 21





How ACH and Real-Time Payments Clearing and Settlement Works 23





Payments as a Service 26





The New Emerging Banks and Their Role in Payments 28





The Payments Race 31





PayTech Regulation Trends 34





An Innovative Local Payments Method in an Ancient Land 37





2. Payment System Infrastructures and Money Transfer Technologies





The Convergence of Card Payments and Bank Payments 46





Instant Payments: A New Deal for the Payments Market? 49





PIN on Mobile - A Pivotal Moment for Payments 51





PayTech in the Cloud 54





The Rise of a Super-Correspondent Banking Network 56





Why Distinctions within Mobile Wallets and Tokenization Matter 59





The Future is Already Here; It is Just Not Evenly Distributed 61





PSD2 Open Banking: The Challenges of Third-Party Provider Identity and Regulatory Checking 64





Taking PayTech to the Villages of India 68





3. Payments Regulation and Compliance





How Payments Regulation and Compliance Can Create a Better Future 74





Refining the Collective Responsibility for Compliance 78





Can Operational Agility Grow Payments in the New Online Platform Marketplaces? 81





The Hidden Value of Greater Standardization for the EU-Wide FinTech Market 84





Is Europe a Good Example of Open Banking? 86





Taking Back the Power: Regulations in the EU are Changing the Face of Banking 88





Achieving Control Effectiveness and Sustainable Compliance Using Nine Factors 91





Money Laundering Laws, Technology and Keeping Up with Criminals 94





Dynamic Regulation Readiness - Implementing the 5th Anti-Money Laundering Directive 97





eKYC: The Next Mountain for e-Businesses to Climb 100





AML Systems After Madoff: Ponzi-Identification Using "Complexity" 102





4. Blockchain Regulation Around the World





Understanding Cryptocurrencies, Blockchain Technology and Regulations 110





Blockchain, Cryptocurrencies and How They Fit Within Current Payments Regulation 114





Blockchain and Beyond 117





Will Central Banks Adopt the New World Economy of Cryptocurrencies? 119





The Case for a National Cryptocurrency 122





Regulation and the Future of Blockchain: Which Approach Will Succeed? 124





Web 3.0 - The Internet of Value 127





Blockchain - An Elixir for Anti-Money Laundering? 129





Facilitating Online Crypto-Payments Now and in the Future 132





A New Law for Derivatives Markets and the Use of Smart Contracts 134





PayTech and Blockchain: Adjusting for Security and Risk 137





Cryptocommodities: An Essential Element of Decentralized Payments 140





5. Payments in Practice





The Perspective of a Passionate Payments CEO 148





Plugging the Data Black Hole: How Mobile Self-Checkout Can Help Revive the High Street 152





How UnionPay Quick Pass is Beating Alipay and WeChat Pay in China 155





How Payment Agility and Cash-for-Carbon Can Solve a Global Problem for Mankind 158





Revolutionizing the Retail Industry Through Integrated Payments Systems 162





Asset Management and Payments in India - So Near and Yet So Far 164





Exploiting the Value of Data Embedded in Payments Systems 167





Reinventing the Customer Experience by Focusing on the After-Payment Emotional Experience 170





How Open Banking and Payment Touchpoints Will Save Banks 172





Why Personal Financial Management Will Be Embedded Into the Next Generation of Payments 175





How Helping Microbusinesses Accept Digital Payments Could Transform Kenya's Economy and Enhance Inclusion 178





How Decentralization Can Create a Customer-Centric Ecosystem 182





6. Blueprint for Change





A Blueprint for Change 188





Accelerating the Adoption of PayTech Innovations 192





How to Build a Successful PayTech Product 195





The Future of Digital Payments Market Infrastructures 198





It's Money, Jim, But Not as We Know It 201





Payments as Open Business Banking Enabler for the Gig Economy 206





The Financial Arms Race: The Game with No Rules 209





How Network Paradigms Can Lead to New Payments Innovations 212





It's the Ecosystem, Stupid! Keeping Ahead in a Payments Ecosystem 215





Mobile Money: Creating a Cash-Light Africa to Solve the Financial Inclusion Problem 217





Back to the Future: A Miraculous Time-Trip Through the Future, Present and Past of Payments 222





Fifteen Ways in Which Our Digital Future Will be Shaped by PayTech 225





List of Contributors 229





Index 236