LAURA McCRACKEN
INDUSTRY CONVERGENCE: ALL ROADS LEAD TO THE CUSTOMER By Laura McCracken , Board director – fintech, payments & platforms
The financial technology and payments sector is evolving at a remarkable pace. Remaining static in this industry equates to falling behind. The growth of embedded finance is blurring traditional industry boundaries. Looking ahead, the convergence of retail, big tech, mobile, and financial services will shift business dynamics, customer loyalty and regulatory frameworks. At the core of this transformation is the mobile wallet, which is redefining how individuals engage with commerce and manage their finances. Payments are the ‘glue’ connecting these sectors, while digital identity will serve as the essential foundation underpinning this ecosystem. Mobile wallets have become ubiquitous, offering a convenient and secure means of conducting transactions. With the widespread adoption of smartphones, mobile wallets enable easy access to funds, money transfers, shopping and services like travel booking, ride hailing and food delivery. Integration with social networks will facilitate peer-to-peer payments, gifting, and social commerce, further contributing to the rise of the creator economy. Moreover, mobile wallets, coupled with digital identity, will enhance financial inclusion by connecting unbanked populations to the formal financial system, thereby allowing broader participation in the global economy. Central to this ecosystem is the concept of digital identity. In an increasingly blurred online and offline world, establishing a reliable and secure digital identity is crucial for user verification and
facilitating transactions. By leveraging technologies such as blockchain and biometrics, financial institutions can offer customers a secure digital identity that enables safe navigation through the digital marketplace. Digital identities provide multiple benefits for customers, including enhanced security, personalisation, identification, and trust. For businesses, digital identity solutions streamline customer service and onboarding processes, which are particularly challenging for financial services, telecom, marketplaces, travel and social media platforms. However, digital identity remains a debated topic in Europe, the UK and North America due to ongoing privacy concerns. As people spend more time interacting and transacting on platforms like Meta, Amazon, TikTok and Google, verifying credentials, identifying bots and protecting users become critically important. Beyond the convergence story, the development of emerging technologies presents significant opportunities for the payments industry. Artificial intelligence is poised to transform fraud detection, while blockchain technology offers the potential to enhance transaction transparency. Furthermore, as we advance from open banking to open finance, and ultimately to open data, customers will be empowered to manage their own data to optimise their financial situations. These technologies not only promise to significantly improve efficiency within the financial services sector but also aim to provide a more secure, efficient and user-friendly experience for both merchants and consumers.
The payments ecosystem is on the cusp of significant transformations. The convergence of financial services, commerce and mobile wallets is changing how we view and use money. Payments hold this new ecosystem together, while digital identity ensures stability and trust. Our success depends on balancing innovation with user protection, making sure the digital finance revolution benefits everyone. The future promises a more interconnected, efficient, inclusive and equitable financial landscape.
AT A GLANCE
Laura brings 30 years of international leadership through her career with Accenture, Meta, Amazon, Citi and American Express.
She advises fintechs, retailers and platforms on payment strategy, specialising in mobile wallets, marketplaces, super apps, social commerce and the creator economy. Laura also serves as chair for GuavaPay and has served as an independent NED on several regulated financial services boards. She is an advisory board member of The Payments Association (TPA), Chair of Judges for the Pay360 Awards, and Ambassador to Merchant Payment Ecosystems (MPE). She is a frequent speaker at Platform Leaders, Money 20/20, MPE, Financial Times , Shop Talk and Pay360. e: Lmccracken@blackheathadvisors.com in: linkedin.com/in/lauramccracken t: +44 776 456 1414
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