Payments trends and P27: security, speed, and simplicity

With payments one of the fastest evolving international fintech sectors, P27 CEO Lars Sjögren shares his thoughts on current payments trends and how P27 hopes to help shape the future of payments.

Less than a year after its founding, P27 has already had a big impact on how banks and regulators are talking about the future of payments, both in the Nordic region and globally.

Thanks to regular dialogue with banks across the Nordics and Europe, P27 is able to keep its finger on the pulse of where the market is heading as the company moves toward the expected launch of its new digital payments platform in 2021.

“We’re tracking a number of trends in the payments market internationally and incorporating that into our work,” says P27 CEO Lars Sjögren.

Increased need for security

As volumes and values of digital transactions increase, so does the need for increased payment platform security to help protect against money laundering and fraud.

“We see a growing need for a more modern, efficient, and cohesive payments infrastructure. And that’s just one advantage P27 hopes to bring to the table,” says Sjögren.

“Resilience is key. Today we have fragmented subscale platforms. But P27’s plan is to upgrade and future-proof our payments infrastructure for the benefit of customers and society at large.”

Increased competition

Payments is now one of the fastest-growing sectors among fintechs internationally. With more talent and resources pouring into payments globally, competition is increasing.

“We’re seeing solutions like Alibaba’s Alipay emerging from China as well as Facebook Pay in the US,” Sjögren explains.

He’s confident, however, that P27 is well-positioned to help Nordic fintechs stay competitive, particularly in their home market.

“P27 will make it easier for Nordic fintech startups to expand faster by removing barriers between the countries in the region,” he adds.

Real-time economy

But perhaps the most important payments industry trend is the rapidly expanding real-time economy and the increasing demand for real-time payments.

“It’s really about meeting the customer’s demand. And today people expect to execute a payment and have the money arrive within a second or two, no matter where they are,” says Sjögren.

“Meeting those expectations for all types of payments – including cross-border – will require new infrastructure for carrying out payments.”

Payments trends: keep it simple

Another trend related to meeting the demands of the real-time economy is the drive for simplicity.

“Elsewhere in Europe we’re seeing solutions being built piecemeal, with one thing being piled onto or next to something that already exists. But this approach will never achieve the economies of scale and efficiencies the market expects,” he says.

By comparison, P27 plans to cover seven or eight systems currently in use in the Nordics with a payments platform that will be simple, scalable, and flexible.

“We’re aiming to make real-time, cross-border payments as easy as sending a text message”, he says.

NOTE: The official launch of P27 services is subject to regulatory approvals and therefore P27 will not conduct any business activities until required regulatory approvals are obtained.