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ApplyingÌýthis analogy to the businessÌýofÌýpayments may seem unconventional, but if you were to sit back and think about what is happening in the ecosystem today,Ìýyou will note the similarities.ÌýWe are witnessing the initial planting of seedsÌýin the first steps towardÌýopening upÌýaccess toÌýtheÌýbanking and payment services

Partnerships are Crucial to NavigateÌýthe New Payments EcosystemÌý

PSD2 has ushered in a willingness to cooperate and partner the likes of which we have never seen in our industry.ÌýThis isÌýpartially because it has been dictated to the institutions from the markets’Ìýgoverning authorities. But I believe most of us view this shift as a seasonal change, providing the opportunity to survive, but also necessary for long-term survival.ÌýThe comfortableÌýbordersÌýwe all enjoyed in theÌý‘old’Ìýecosystem were well defined and each participant,Ìýeither by a gentleman’s agreement or lack ofÌýdesire orÌýability,ÌýstayedÌýmore or lessÌýwithin their patch, withÌýminimal threat to their business models.ÌýAs we transition to theÌý±·±ð·ÉÌý±Ê²¹²â³¾±ð²Ô³Ù²õÌý·¡³¦´Ç²õ²â²õ³Ù±ð³¾,ÌýthoseÌýbordersÌýhave suddenly disappeared,Ìýand theÌýtidy garden has become a wildflower meadow, withÌýnew varieties and species competing for space.ÌýÌý

Rethinking Payments in an OpenÌýEcosystemÌý

What we have seen in response to thisÌýchangeÌýisÌýthe exposure of APIs for business services, data access,Ìýand endpoints. Banks, processors, merchant service providers, financial service firmsÌýandÌýstartups are all working in this garden together to growÌýnew solutions that will solveÌýemergingÌýconsumer needs and pain points.ÌýThe ability to completely rethink banking and payments, from the services and products to the way in which we send and receive payments (either from friends and family,Ìýor our employers), is in play. Imagine getting paid hourly for your salary job, every hour on the hour, or being able to pay your utility bills every night as you turn off your light. You couldÌýreduceÌýthe rate you pay on that serviceÌýwithÌýprompt payment.ÌýIn the past,Ìýthese ideas were held back by technical limitations, but nowÌýthe brightest minds in our world can start to play with the new tools,Ìýthanks toÌýpayments technology evolution.ÌýÌý

We are just starting toÌýsee theÌýfirst seeds sown inÌýour garden.ÌýTheÌýexposure of APIs and the growth of this marketÌýhas toÌýbe carefully watched,ÌýnurturedÌýand maintainedÌýby the watchful green thumbs all around us. I,Ìýfor one,Ìýcan’t wait to see whatÌýweÌýreapÌýat harvest time!Ìý

Want to find out more about making the most of the opportunities the Open ecosystem holds? Download our eBook:ÌýOPEN! Open payments and their impact.