In today's rapidly evolving financial landscape, the digitization of payment systems has become a cornerstone of global economic activity. As digital payment volumes soar and transaction complexity rises, with more initiation channels and diverse payment rails, the need for operational resilience is more critical than ever. Ensuring transparency, reliability, and robustness in payment operations is no longer just a regulatory mandate; it’s a foundational requirement to maintain consumer trust and safeguard economic stability. The Criticality of Digital Payment Systems Digital payment systems are essential to the seamless operation of both national and global economies. Disruptions in these systems can trigger cascading effects, impacting businesses, consumers, and financial institutions alike. Recent incidents highlight the vulnerabilities within payment infrastructures. For example, on February 28, 2025, the European Central Bank’s TARGET payment system experienced a signi...
The rise of embedded banking and digital ecosystems has reshaped the financial services landscape. While the concept of collaborating with specialist partners is widely celebrated, in practice, these partnerships often serve a tactical role, bridging product or capability gaps and accelerating time-to-market, rather than reflecting a long-term strategic vision. Many incumbent banks have followed a predictable pattern: they start by partnering with fintech specialists to test new offerings, and once the value is proven, they acquire these companies to fully integrate their capabilities. Others choose to build these services internally. As a result, today’s incumbents are increasingly offering solutions that were once exclusive to fintechs, e.g. Buy Now Pay Later (BNPL) services, acquiring and issuing services, Banking-as-a-Service (BaaS), even stablecoins. At the same time, a reverse trend is unfolding. Fintechs that launched with a narrow, specialized focus are stead...