In today's world, money transfers and payments often generate friction for both merchants and consumers. Ambiguous fees, complex currency exchanges, and inadequate support for popular payment methods persist, leaving a significant portion of the global population on the fringes. The World Bank estimates that around 1.7 billion people worldwide are still unbanked, lacking access to essential financial tools.
Beyond Visa & Mastercard
While Visa and Mastercard continue to focus on metrics such as average transaction value (ATV), especially in developed markets, a newer breed of payment systems are gradually making their presence felt. Alipay, for instance, has already found widespread adoption within China, revolutionizing the domestic financial landscape. However, Alipay+, a recent innovation aimed at linking multiple wallets and facilitating cross-border payments, is still in its early stages.
Meanwhile, the advent of instant payment systems such as PIX in Brazil and UPI (Unified Payments Interface) in India herald a new era of financial inclusivity and efficiency.
Central Banks Stepping Up
Initiatives like PIX and UPI, driven by the central banks of Brazil (Banco Central) and India (RBI) respectively, are transforming the way merchants accept payments.
By emphasizing cost-effectiveness and user convenience, these platforms have witnessed significant transaction volume growth.Instant payments, offering real-time connectivity between users and merchants through a centralized payment infrastructure, are indeed revolutionizing the financial landscape.
The Pomelo Perspective
At Pomelo, we've observed an increased preference for UPI across Southeast Asia, especially amongst Indian travellers visiting countries like Thailand, Vietnam, Malaysia, and Singapore in the post-Covid era. As the user base of platforms like PIX and UPI continues to grow, the entire industry stands to benefit.
Furthermore, with the Federal Reserve's instant payment service, FedNow, slated to launch in July 2023, the importance of instant payments cannot be overstated.
Pomelo remains committed to facilitating domestic and cross-border payment systems like Pix and UPI, continually enhancing its capabilities to deliver maximum value to our partner networks.
Image credit: Unsplash
Meet Sonam Bhutia, our Chief Commercial Officer at Pomelo.
With over 18 years of exceptional experience in the financial industry, including notable roles at renowned institutions such as Worldpay and Ant Financial, Sonam brings a wealth of expertise and leadership to our team. His deep understanding of the payments landscape, coupled with his strategic insights, allows him to drive commercial growth and deliver innovative solutions for our clients.
