Howard Hall, Vice President Growth at Consult Hyperion, consulting by Fime, summarizes the key discussions and insights from Money2020 USA 2025, one of the leading payments industry conferences.
Fime and Consult Hyperion was out in full force at Money 20/20 Las Vegas, with Dave Birch, Xavier Giandominici, Ben Potter and Nick Norman all on the ground. Over three packed days we met with dozens of clients, partners and industry friends, both old and new. We came away inspired by how fast the world of payments, identity and digital trust is evolving.
The era of agentic AI.
Agentic AI was everywhere this year. Dave Birch’s session, supported by leaders from Mastercard explored how intelligent, autonomous agents will reshape the way money moves and decisions get made. These aren’t just chatbots; they’re systems capable of acting on our behalf, initiating payments, verifying identity and managing risk. The question everyone is asking now is: how do we trust the agent? What are the new signals, frameworks and governance models that let us verify that an AI acting for us is doing the right thing?
This conversation dovetails perfectly with our heritage in digital identity and trust frameworks. It’s one thing to build an agent; it’s another to ensure that it’s secure, compliant and grounded in real-world identity. That’s where we come in.
Stablecoins and the future of money.
Stablecoins and tokenized money continued to capture attention across panels and side discussions. There’s a growing sense that programmable value, whether through stablecoins or digital fiat will be the natural companion to agentic AI. If agents are going to act, they’ll need a medium of exchange that is fast, programmable and secure.
We heard repeatedly that firms want help bridging the gap between experimentation and production. This is the kind of challenge Consult Hyperion thrives on combining technical insight with regulatory understanding to make the next generation of payment rails real. Insights from dozens of client conversations.
Our one-to-one meetings revealed a lot about what’s on the minds of our clients and partners:
Platform resilience and optimization came up again and again — from large fintechs re-evaluating their processing infrastructure to global brands seeking help rationalizing fragmented payment systems across multiple geographies and logos.
Digital identity and trust frameworks were top of mind. Organizations across banking, payments and big tech are exploring how to extend KYC into the world of Know-Your-Agent (KYA) and mDL.
Tokenization and security continue to present both opportunity and friction. Several firms are revisiting their existing implementations and seeking a path toward scalable, interoperable solutions.
Go-to-market alignment remains a challenge. Many companies are looking for help in shaping adjacent services, workshop and partnership strategies are areas that were top of mind.
Sector-specific certification and standards are shifting. We heard updates from trusted partners working to reshape digital-identity assurance around specific industries rather than one-size-fits-all frameworks.
These conversations reaffirmed what we already know: clients value practical, implementation-level understanding of the complex ecosystems that connect identity, payments and technology.
Why this matters.
For nearly three decades, Consult Hyperion has helped organizations around the world navigate the intersection of trust, technology and financial inclusion. Whether it’s designing new tokenization schemes, building digital-identity frameworks or testing payment systems with Fime, our work sits at the core of where the industry is heading.
Money 20/20 was a reminder that we’re entering a new chapter, one where human and machine actors coexist in digital ecosystems that demand security, privacy and interoperability from the start.
Let’s continue the conversation.
If you’d like to explore how agentic AI, stablecoins or next-generation identity can be built safely and responsibly into your business, we’d love to talk. Reach out to our team and let’s turn these conference insights into real-world strategies and implementations.
Phoenix, Arizona – October 2025 – Fime participated in the AAMVA Relying Party Showcase and the AAMVA International Conference, reinforcing its leadership in advancing secure, interoperable, and scalable digital identity solutions.
The Showcase gathered issuers, wallet providers, reader providers, DMVs, and technology companies under one roof to demonstrate real-world mobile driver’s license (mDL) use cases. Fime’s delegation, including Marcelo Bellini, VP Digital Identity at Consult Hyperion, Consulting by Fime, Gregory Tierno, Business Development Director, Jerrin Thomas, Service Line Manager, and Gaurav Manchanda, Product Manager, participated in both the showcase and conference sessions.
Panel: ensuring trust in digital credentials.
As part of the panel “Ensuring Trust in Digital Credentials in North America and Beyond,” moderated by Tim Roufa Portfolio Director for Identity Credentialing at AAMVA, thought leaders came together to share their perspectives on scaling digital identity. Panelists included Luis Felipe Segura, Field CTO at Incode, Christopher Goh, International Advisor at Valid8 Advisory and Marcelo Bellini.
Marcelo emphasized the role of testing and certification in building trust within the mDL ecosystem, drawing lessons from the payments industry, where testing and certification enabled global scale. He highlighted global digital identity deployments across the EU, Japan, and Australia. Marcelo also underlined the importance of a Digital Trust Service (DTS), such as the one operated by AAMVA, in supporting adoption and scalability.
Demo highlight: two taps to trust.
One of the showcase highlights was the collaboration between Consult Hyperion and Zebra Technologies presenting a live demo, which illustrated how identity verification and payments can be seamlessly managed on a single handheld Contactless Payment ready mobile device (COTS).
The demo featured:
Identity verification using a production Georgia mDL stored in Apple and Google Wallets.
Payment transactions with production Mastercard and Visa EMV contactless cards.
Public key retrieval from the AAMVA Digital Trust Service, enabling the relying party to securely trust the mDL.
A COTS contactless payment device that scans product barcodes, triggers an ID check for age restricted items (e.g., alcohol) and processes payment – all in just two taps: one for identity and one for payments.
The demonstration was praised by attendees for its simplicity, practicality, and potential to transform multiple industries, from stadiums and public transport to law enforcement, alcohol retail, and grocery stores.
“This use case really shows the power of convergence between identity and payments,”
said Greg Tierno, Business Development Director at Fime.
“Having both functions on a single, easy-to-use handheld device makes life simpler for merchants, law enforcement, and consumers alike. It’s a practical, scalable solution that lowers friction and raises trust – exactly what the ecosystem needs to accelerate adoption.”
Building ecosystem momentum.
Following the Showcase, Fime also took part in the broader AAMVA International Conference, engaging with issuers, wallet providers, reader providers, biometric solution companies, and technology vendors. The event offered an unparalleled opportunity to network, exchange insights, and accelerate collaboration towards a trusted digital credential future.
“Our successful demonstration with Zebra underscores the transformative potential of combining digital identity and payments in a single, trusted device,”
added Marcelo Bellini, VP Digital Identity at Consult Hyperion, Consulting by Fime.
Acknowledgement
Fime extends its gratitude to AAMVA and its organizers for hosting a world-class event that continues to drive meaningful dialogue, collaboration, and innovation across the digital identity ecosystem.
Work with an expert partner for a secure digital future.
mDLs are moving quickly from pilots to real deployments, and relying parties must be prepared. At Consult Hyperion, we help organizations bridge the gap between initial awareness and production-level implementation.
Our support spans the full journey: from masterclasses and tailored workshops to build understanding, through business case development to justify investment, and market and vertical analysis to identify opportunities. We assist with use case definition, technical requirements, and RFI/RFP support, helping you select the right vendors and solutions and provide implementation support. And through thought leadership collaborations, we share insights that keep you ahead of the curve.
Our goal is simple: to give you a clear strategy, a strong business case, and a trusted path to deploy mDLs with confidence.
The very notion of “strategic readiness” in payments and identity has evolved far beyond routine system upgrades or incremental tweaks. We’re no longer simply replacing the boiler in a Victorian banking house—we’re laying track for the bullet train of the digital economy. This seismic shift demands a fundamental rethink of infrastructure, ideology, and strategic vision.
At this inflection point, identity, reputation, and tokenized value are no longer discrete elements—they are converging into a seamless, dynamic ecosystem. The future of payments is about more than speed or scale; it’s about embedding trust, context, and programmability into every transaction. This is a call to action for payment providers, technology architects, and financial institutions: it’s time to prepare not just for the next upgrade, but for a new paradigm.
1. Tokenization: the new grammar of value
Tokenization is often misunderstood as merely a technical means of wrapping assets digitally. Tokenization represents a profound shift: money that understands us. Tokens are not just containers of value; they encode conditions, context, and control into the very fabric of money itself.
This is programmable money—value with an API. It can carry rules about who can spend it, when, where, and under what conditions. It can embed compliance, privacy, and even reputation directly into the token. This new grammar of value is rewriting the rules of payments, loyalty, and identity.
Strategic imperatives: The readiness challenge goes beyond adopting standards like ISO 20022 or C-8. It requires building platforms capable of handling multi-asset token models—fiat currencies, CBDCs, stablecoins, loyalty points, and reputation tokens—simultaneously. These tokens must interoperate across chains, jurisdictions, and regulatory frameworks.
Tactical considerations:
Can your platform manage multi-asset token models?
Are your tokens programmable with embedded policies, metadata, and rules?
Can tokens interoperate across different blockchain networks and regulatory environments?
Do you treat tokens as carriers of identity and entitlement, not just value?
Inspiration: The future belongs to platforms that treat tokens as flexible, composable building blocks—not static assets.
CBDCs: Central banks worldwide are exploring programmable digital currencies that embed monetary policy and compliance rules at the token level.
Stablecoins and Loyalty Tokens: Brands are experimenting with tokens that combine value with customer reputation and engagement metrics.
2. Global standards: strategic alignment beyond interoperability
Standards like ISO 20022, ATICA, and C-8 are often viewed narrowly as technical interoperability tools. They represent strategic battlegrounds for influence and alignment.
Money is becoming more abstract and global, making cross-jurisdictional alignment essential. Standards are the rails on which the digital economy’s bullet train runs. Getting them right means seamless connectivity; getting them wrong means fragmentation and isolation.
Strategic imperatives: True readiness means engaging proactively in standards governance. It means seeing standards not as a compliance checklist but as a diplomatic and strategic game. Just as 19th-century railway gauges determined economic dominance, modern standards will determine who controls the rails of digital payments and identity.
Tactical considerations:
Have you mapped your organization’s position in evolving standards?
Are you investing in interoperability by design, bridging legacy and emerging systems?
Are you actively participating in standards bodies and governance forums?
Inspiration: The winners in the next decade will be those who shape standards, not just follow them. Open banking initiatives worldwide demonstrate how early movers in standards governance gain competitive advantage and market influence.
3. Digital identity: the strategic spine of future payments
Identity is shifting from a static presentation to a dynamic performance. It’s no longer a simple credential shown at a single point in time, but a persistent, evolving construct that draws from social, legal, and behavioral data streams.
This shift has profound implications for payments. Authentication is no longer about passwords or PINs—it’s about a rich tapestry of biometric signals, device fingerprints, and behavioral biometrics that collectively redefine trust. This isn’t just a technical upgrade; it’s a wholesale redesign of how trust is established and maintained in digital interactions.
Strategic imperatives: Because identity is the foundation upon which all payments rest. Without a robust, flexible, and user-centric identity layer, payments remain vulnerable to fraud, friction, and exclusion. But when identity becomes fluid, portable, and programmable, it unlocks new possibilities: seamless onboarding, frictionless authentication, and privacy-preserving data sharing.
Embedding a context-aware identity layer is no longer optional—it’s foundational. This means integrating verifiable credentials, decentralized identity (DID) frameworks, and self-sovereign identity (SSI) principles directly into payment platforms. Identity must be treated as a living asset that travels with the user across ecosystems, rather than a siloed attribute locked inside a single institution.
Tactical considerations:
Infrastructure readiness: Does your system support verifiable credentials and decentralized identity frameworks?
Contextual authentication: Have you deployed multi-factor, behavioral, and device-bound authentication methods?
Portability: Can users carry their identity credentials across platforms and services?
Privacy controls: Are privacy settings granular, user-centric, and programmable to adapt to different contexts?
Inspiration: The institutions that lead the next wave will be those that treat identity not as a compliance hurdle but as a strategic asset—one that enables trust, inclusion, and innovation.
Nordic BankID: A leading example of a national digital identity platform enabling seamless authentication across banking, government, and commerce.
India’s Aadhaar: A massive biometric identity system that powers a range of financial inclusion initiatives and digital payments.
4. The future-proofing mandate: architecting for ambiguity and agility
Future-proofing is often mistaken for predicting the next big thing. In reality, it’s about designing systems that thrive amid uncertainty and change. The real currency of the next decade is optionality—the ability to pivot, adapt, and compose new solutions rapidly.
Monolithic architectures and tightly coupled ecosystems are liabilities in this environment. Instead, the future belongs to modular, composable platforms that can integrate new identity models, token types, and regulatory requirements without wholesale rewrites.
Strategic imperatives: Build with composability and modularity at the core. Adopt open token standards, modular identity stacks, and orchestration layers that enable dynamic rule enforcement. Embrace cloud-native, API-first, and event-driven architectures that support rapid innovation.
Tactical considerations:
Is your architecture truly composable and plug-and-play?
Are your systems event-driven and cloud-native?
Is your data layer decoupled from service layers to enable seamless migration?
Have you invested in orchestration tools for dynamic policy enforcement?
Inspiration: Look at the tech giants who thrived in the internet era: they weren’t oracles predicting trends—they were architects building platforms that could evolve. The same mindset is essential for payments and identity today.
Final thought: lead with vision, not nostalgia
The opportunity to lead this transformation is immense—but only if leadership embraces a new mandate. The goal is not to preserve legacy systems or replicate old models digitally. It’s to reimagine what payments, identity, and value can become in a connected, programmable world. Digital infrastructure is no longer a compliance burden; it’s a civilizational substrate. The future belongs to those who treat it as such—building with courage, curiosity, and a refusal to mistake digitization for transformation. Remember: the payments game is being played by actors who have no interest in being banks. The disruptors, platforms, and protocols are rewriting the rules. Are you ready to lead?
Digital wallets are transforming how we pay, interact, and secure our digital identities. As smartphones become indispensable, consumers worldwide are using digital wallets for transactions, peer-to-peer payments, and even managing digital identities like driver’s licenses and health credentials. However, behind the convenience of digital wallets lies a complex network of technology, security, and regulatory challenges.
At Consult Hyperion, we specialize in navigating these challenges, using our expertise at the intersection of identity, payments, and cybersecurity to help clients innovate securely and effectively in the digital wallet space.
Digital Wallets: Expanding Beyond Payments
While digital wallets initially gained traction as payment tools, they have evolved into multi-functional platforms that can store not only debit and credit cards but also digital identities, health passes, travel documents, loyalty cards, and more. Wallets are increasingly integral to the digital identity ecosystem, empowering people to prove who they are, access services seamlessly, and control their personal data with security and transparency.
One emerging trend is the integration of mobile driver’s licenses (mDLs) into digital wallets. As mDLs gain adoption, digital wallets can provide a secure, portable means of identity verification, allowing users to authenticate their identities for various purposes while retaining control over their personal information.
Regional Approaches: United States, Europe and Australia
The adoption of mDLs into digital wallets varies significantly across regions, influenced by differing regulatory environments, market demand, and technological infrastructure. Here’s how digital wallet innovation and mDL adoption is evolving across North America, Europe, and Australia.
United States
The U.S. has been at the forefront of mDL adoption with several state DMVs already rolling out mDLs and several others with programs underway. These digital credentials are starting to be accepted for in-person use cases such as domestic air travel and liquor purchases. And going forwards, they will also be accepted online. Like physical driver’s licences, mDLs will have a lot of utility.
Many states are choosing to work with the large platform wallets, like Apple Wallet and Google Wallet, issuing mDL credentials into the wallets consumers already have. Those wallets are increasingly becoming “digital hubs” where users can store a variety of credentials. But this is not the only solution. Some states have also launched mDL specific apps. These provide consumers with the option of a standalone mobile driver’s licence.
In the middle of all this progress is the American Association of Motor Vehicle Administrators (AAMVA) which is playing an important role coordinating stakeholders and promoting standardized and interoperable approaches.
Europe
Some European countries have local proprietary mobile driving licences…
In the EU, the eIDAS 2.0 regulation requires each country in the EU to provide at least one digital wallet to its citizens, residents and businesses. Those wallets will be required to support for the ISO 18013 standard that underpins mDLs. In parallel, the EU plans to make driving licences mobile by default.
The situation is however complex.
• The EU is developing a rich but complex wallet architecture, of which support for mDL is just one part. • Many wallets – which will require robust certification processes if interoperability is to be achieved • Role of OEMs unclear – providing wallets or providing the secure technology to support wallets over the top
The EU wants all of this to come together over the next couple of years, which seems very ambitious.
So whilst wallets look set to play an important role in the EU digital economy, it will be some time before they provide the straightforward utility of US mDLs.
Australia
Australia has also been a leader in mobile drivers licences, several states issuing them. Austroads, an intergovernmental organization, is driving the development and standardization of mDLs in Australia. They are working with state and territory governments to develop a consistent framework for mDLs, ensuring interoperability and security. This includes alignment with both ISO 18013 (mDL) and the more generic ISO 23220 (mDoc). This should allow the mDL apps issued in Australia to hold other digital credentials in the future. So instead of issuing mDLs into wallets, the mDL will become the wallet. Austroads is going one step further by building a “Digital Trust Service” – providing the means to check the authenticity of the issuers of digital credentials held in those “mDL wallets”.
The Core Elements of Digital Wallet Success
Digital wallets that can hold both payment credentials and other digital credentials will have huge utility. They will increase convenience, reduce fraud and improve privacy.
Successfully implementing and scaling digital wallets requires expertise in several key areas:
Security: Security is crucial when handling sensitive information such as cryptographic keys, payment details or digital identity credentials. Consult Hyperion has decades of experience of building and testing secure payments services with expertise in strong cryptography, mobile application security and tokenization.
Identity: Digital wallets often serve as digital IDs. Users can store verifiable credentials, such as mDLs or health passes, giving them control over personal data. Integrating these digital identity solutions requires navigating regulatory frameworks and ensuring interoperability with existing systems. At Consult Hyperion, we leverage our deep knowledge of standards like Decentralized Identifiers (DIDs) and Verifiable Credentials to design privacy-protective and compliant solutions.
Payments: Wallets gained popularity as payment solutions, and understanding payment intricacies is essential. This includes managing multiple payment types and adhering to regional regulations. Our expertise spans EMV, contactless, and real-time payment systems, enabling us to help clients integrate and scale secure wallet-based payments globally.
Why Consult Hyperion?
Our ability to bridge the gap between theory and real-world application makes us a trusted advisor for organizations building digital wallets. Our expertise encompasses:
Strategic Partnerships and Innovation: Trusted by financial institutions, tech companies, and governments, we’ve helped design systems that meet stringent security, usability, and regulatory standards. We understand the strategic goals behind digital wallet projects, allowing us to guide clients in creating solutions aligned with long-term objectives.
Deep Technical Knowledge: Our technical expertise across identity, payments, and cybersecurity enables us to develop robust solutions, from designing secure protocols to implementing advanced authentication methods.
Proven Track Record: Our history of delivering projects in both private and public sectors demonstrates our ability to execute at scale. Clients rely on us for our technical capabilities, dedication to quality, and innovative approach.
The Future of Digital Wallets: Shaping the Next Generation
Digital wallets are evolving with advances in biometric security, decentralized identity, and blockchain technology. As wallets move beyond payments, businesses must adapt to new standards for security, privacy, and user experience. Apple, Google, and government-led solutions worldwide are positioning themselves as leaders in the wallet space, each bringing unique strengths to the ecosystem. Consult Hyperion remains at the cutting edge, helping organizations navigate this dynamic landscape. Whether you’re looking to launch a new digital wallet, expand an existing platform, or secure sensitive data, we offer the expertise and insight needed to support your goals.
Final Thoughts
Digital wallets are becoming vital gateways to secure payments and digital identities across the world. At Consult Hyperion, we’re excited to help shape this future, enabling our clients to create secure, compliant, and user-centric solutions. With our expertise in identity, payments, and cybersecurity, we look forward to partnering with organizations worldwide that share our vision for a secure, interconnected digital world.
I’ve just received a cheery email from my credit card provider entitled, “We’re improving your fraud protection.” I assume it is from them: it arrived amongst a barrage of emails telling me not believe what I read in emails. When online scamming was in its infancy, you could spot the difference but, as fraudsters’ skills, use of AI and sophistication has developed, nobody really can any more.
It is important to remember that this is an equal opportunities form of fraud. You don’t have to be online. You don’t even need a mobile phone. If you have a UK bank account and a phone number, the scammers will delight in using their social engineering skills to extract your life’s savings.
In the communication I’ve received, beyond all the good news about the generosity of the bank, there is a brief mention of the Payment Systems Regulator (PSR) [1]. Apparently, they require all Authorised Push Payment (APP) transactions to be subject to a refund within 5 workings days if they are found to be fraudulent. This applies to payments over both Faster Payments and CHAPS. There are exceptions to this, for example where the customer is grossly negligent and not considered vulnerable [2].
There is also a ceiling set on the amount. This was initially announced as £415k but, due to strong resistance from the banks, is now set at £85k. The PSR state that this will cover 99% of APP claims. It happens to be the same amount as individuals can claim for lost savings under the Financial Services Compensation Scheme [3], should their bank become insolvent.
In the early days, Faster Payments was a rather unpredictable experience but, as it has scaled, many of the creases have been ironed out. Confirmation of Payee has helped to ensure that the payment reaches the intended beneficiary. It can take a couple of attempts to get it right. e.g. for dog walkers, they may appear as Wendy’s Walkies, under the name of the owner Wendy Walker and as a business account or a personal account. Still, if you have the correct sort code and account number, things tend to fall into place.
My bank has sent me a similar email, telling me to be wary around One Time Passwords (OTPs) and referring me to the Take Five To Stop Fraud [4] website. Again, it looks plausible and the advice is not unreasonable. It is, however, disappointing that there seems to be very little discussion of mutual authentication these days.
One aspect of the new regime is that all Payment Service Providers (PSPs) must be registered with Pay.UK. Both receiving PSPs and sending PSPs can be liable for any APP fraud. This is a significant departure from the existing regime, where the burden tends to fall on the sending PSP.
Losses due to APP scams are estimated at nearly £500m [5] annually. UK Finance [6] has identified factors which contribute to APP fraud, one of which is perceived urgency in dealing with a situation. While Faster Payments provides real convenience, the transactions are not reversible and so it has become a honey pot for thieves. Once money is transferred to a fraudulent account, it can be sent on to multiple accounts, sometimes with the assistance of money mules, either in the UK or overseas.
Frequently, by the time the fraud is investigated, the money is long gone. In response to this, PSPs are permitted to introduce a delay into the processing of payments. In principle, where a payment appears suspicious, they can put in place a pause of up to four days [7]. Clearly, this has serious implications for transactions such as conveyancing, where a housing chain requires everyone to complete on the same day. Even in simple situations, like paying a credit card bill, delays can result in the cardholder having to pay additional charges and interest.
While it is positive to see the challenges of APP fraud being addressed, it will be interesting to see how these significant changes to the payments landscape play out over the coming months. Activities such as intelligence sharing, risk-scoring and real-time screening [8] will remain central to tackling fraud.
It is interesting to note that in other countries where approaches to Open Banking are being explored, the focus tends to be on data sharing rather than payment initiation. For example, in the US, the Consumer Financial Protection Bureau [9] (CFPB) is working to open up data sharing, to promote innovation in financial services.
In conversation with Consult Hyperion – What’s holding you back? Your system or your mindset?
For years, industry experts have predicted the downfall of legacy systems, warning financial institutions (FIs) that clinging to outdated technology would ultimately lead to obsolescence. Yet, despite these warnings, legacy systems continue to play a central role in payments ecosystems of many FIs. So, what’s really holding the industry back? Is it the technology itself, or the mindset surrounding system modernisation?
Join our expert panel, including Gary Munro (Consult Hyperion – Technical Director), Maria Nottingham (Managing Director), Bethan Cowper (VP, Business & Market Development), and Eyad Almaaitah (VP, Global Product Management), for an in-depth discussion on the state of payments ecosystems. Together they explore how legacy systems continue to fit into today’s complex payment architecture, and why, despite the rise of fintech and digital innovation, true transformation remains elusive. This webinar is essential for payments professionals, C-level executives, and anyone responsible for ensuring their institution remains competitive in an rapidly evolving financial landscape.
In the dynamic realm of digital transactions, India and the United States stand out as two distinct landscapes, each with its own set of challenges, triumphs, and innovative solutions. As someone who has witnessed the evolution of payment systems in both countries, the contrasts between my birthplace, India, and my current residence, the US, are stark yet revealing of the shared pursuit of efficiency, security, digitalization, innovation and convenience.
Cash was king in India
Growing up in India, cash was king. Whether hailing a taxi or indulging in street delicacies, or dining at a restaurant, cash was ubiquitous, rendering cards virtually irrelevant. In fact, cash accounted for 95% of all transactions in 2016, with approximately 90% of vendors lacking card readers. However, since my move to the US in 2016, I’ve observed a seismic shift towards digital payments back home.
India embarked on a digital transformation with the introduction of the Unified Payments Interface (UPI) and the bold move of banknote demonetization in 2016. With UPI, customers can now pay by scanning a QR code using a payment wallet, while merchants can accept payments in real-time without the need for extensive payment infrastructure or interchange fees, simplifying the overall process. This has contributed to UPI’s widespread adoption, with a staggering 83 billion transactions recorded last year. From street vendors to shopping malls, the UPI real-time payment initiative has democratized financial transactions, permeating every corner of society and largely reshaping India’s payment ecosystem since its launch.
Furthermore, India’s vision extends beyond its borders, with initiatives underway to facilitate cross-border real-time money transfers through UPI. Collaborations with countries like Sri Lanka, Mauritius, France, Singapore, Nepal and the UAE highlight India’s ambition to foster global interoperability, allowing travelers to utilize UPI for purchases abroad. It is a personal delight to have the option to pay for the ticket to the Eiffel Tower using UPI, and I’m sure to try it when I visit.
Cards are king in the US
In contrast to India’s cash-dominated landscape, debit and credit cards were widely accepted in the United States when I moved in 2016, gradually replacing cash as the preferred mode of transaction. Apple Pay, now accepted at 85% of retailers, along with other digital wallet options such as PayPal and Venmo, offered users convenient alternatives to traditional payment methods.
In 2017, Zelle’s launch marked a milestone in peer-to-peer payments, alongside The Clearing House’s introduction of the Real-Time Payments (RTP) network, offering instant payment options. The subsequent integration of Zelle with RTP in 2021 further enhanced the ecosystem, enabling instant clearing and settlement over the RTP network. Adding another dimension to the US payment infrastructure, FedNow was introduced last year, promising to complement existing systems and expand the horizons of real-time payments. While both FedNow and TCH’s RTP represent incremental improvements to the US payment infrastructure, their coexistence and interoperability remain to be seen. In a nation where competitiveness fosters innovation and offers consumers and organizations choices, the synergy between these services will likely shape the way we transact in future.
Charting the course: Embracing opportunities, mitigating risks
With the rapid evolution of payment systems, we are witnessing a simultaneous rise in fraud patterns and cases, driven by advancements in AI and processing power. Fraudsters are leveraging advanced technologies to exploit vulnerabilities in emerging payment systems, highlighting the critical need for resilience and security. Digital identity initiatives like Aadhaar in India and mobile driver’s licenses (mDLs) in the US offer promising avenues to address some of the existing flaws in the system and mitigate risks. At Consult Hyperion, we recognize the importance of these initiatives and stand ready to assist in their implementation and enhancement.
In the journey towards a cashless and digital future, collaboration, competitiveness, and innovation are serving as guiding beacons. By leveraging the synergies between different ecosystems and understanding the nuances of each, India and the US are paving the way towards financial inclusivity and empowerment on a global scale. It is not about a one-size-fits-all solution; instead, we must craft tailored solutions that meet the diverse needs of each nation and its citizens. Through Consult Hyperion’s expertise, you can navigate these complexities and build payment systems that are resilient, secure, and user-centric, ensuring a secure transition towards a digitally empowered future.
The Metropolitan Transportation Authority (MTA) has taken a giant leap forward in modernizing the way New Yorkers and visitors pay for their daily commutes with the introduction of OMNY (One Metro New York). OMNY, a contactless fare payment system, is not just another technological upgrade; it’s a game-changer that promises to revolutionize the way people travel in the Big Apple. OMNY was officially launched in May 2019, starting with a limited pilot program of the Open Payments system to accept physical bank cards and bank cards on mobile Pays on select subway lines and buses. The system’s initial introduction was met with anticipation and excitement, as commuters eagerly embraced the prospect of a more convenient and efficient payment method. Since then, the adoption of Open Payments has been nothing short of impressive.
The system had been deployed on all subway lines and buses in New York City. Commuters across the five boroughs now have easy access to the OMNY readers, ensuring a seamless travel experience, and the MTA has been working on expanding the reach of OMNY as it has started to distribute its closed-loop OMNY cards in retail locations. Just last month, the Roosevelt Island Tramway joined the tap-and-go system and became the first non-MTA operated entity to participate in OMNY. AirTrain JFK will start accepting OMNY’s contactless payments starting 10 October.
The MTA recently reported that approximately 67% of full-fare riders have made the switch from MetroCard to OMNY. Considering the delay in rolling out the OMNY Vending Machines, this figure appears to indicate that overall, the Open Payments system is a big hit. Evidence of this can be seen in OMNY reaching its 1-billion-tap milestone this summer. This is even more impressive considering they reached this milestone five months quicker than the TfL did (in spite of the ridership impacts brought on by the pandemic).
Why is Open Payments so successful for the MTA? Is it just because of the Wall Street executives who ride MTA? Or is it because the agency made a choice to offer Open Payments as the first phase of their new fare payment system, have been marketing it on every bus, subway car and vending machine and have been enhancing the offering with features like fare capping?
If you’re attending the APTA TRANSform conference in Orlando, find Lawrence and Simon who both worked on the OMNY project, and ask us for our thoughts. We would love to chat with you about it!
