Understanding the new payment methods, their risks, and opportunities

By Brad StarnesWhite Papers
Understanding the new payment methods, their risks, and opportunities
By Ana L. Pereira and Ana Maria H. de Alba
As global competition increases, organizations are looking to introduce new payment products and services to the financial marketplace. Prepaid cards, e-payments, b2b, mobile banking, mobile payment services, virtual currencies, and Internet-based payment services are some examples. Most of these new payment methods address a specificdomestic economy (mainly in developing economies) or have been developed for electronic commerce. Each has its own unique application and settlement process, language and currency support, and is subject to domestic rules and regulations. Along with these technological advancements come accessibility, convenience, speed, but also an increase in risk. The growing number of ways to make noncash payments has changed the financial landscape andthe regulatory environment. An institution’s understanding of the risks inherent in these payment methods, and how..