The payments industry is undergoing a profound transformation. With the rise of digital assets, real-time payment methods, and evolving regulations, the pace of change has never been faster. Transaction volumes are surging, payment methods are diversifying, and businesses are under pressure to adapt.
Despite these advancements, many firms still rely on outdated payment systems and technologies that can’t keep up with the growing demands of the market. As the world shifts to faster, more efficient digital payment methods, the question remains: are your payment systems ready?
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The growing role of digital assets in payments
The way we process payments has changed drastically in the last decade. Instant, contactless, and tokenised payments are now at the forefront of payment processing.
Notably, the rise of cryptocurrencies, stablecoins, and Central Bank Digital Currencies (CBDCs) are transforming the digital payments landscape. These innovations offer businesses and consumers a way to move money faster, cheaper, and more securely.
Here’s how these technologies are reshaping the payments ecosystem:
- Stablecoins are transforming cross-border payments by providing faster, cheaper alternatives to traditional transfers. Transactions are now settled in minutes instead of days.
- Crypto & tokenised payments are reshaping payment workflows – smart contracts enable instant, automated transactions, reducing reliance on intermediaries and improving efficiency.
- CBDCs are reshaping national payment systems – central banks are piloting digital versions of fiat currencies to modernise payments, which are expected to improve security, efficiency, and accessibility of national and cross-border transactions.
As digital assets continue to gain traction, payment networks must evolve to accommodate rising transaction volumes, evolving regulatory frameworks, and the growing demand for real-time settlement.
Our latest payments report reveals that 83% of organisations now process, action, and report payment data either in real time or at least once a day, highlighting the shift towards faster, more responsive payment systems.
The challenge: outdated payment systems and technologies can’t keep up
As digital assets become increasingly integral to global payments, many businesses find their outdated infrastructure, manual processes, and legacy systems simply can’t keep up.
The result? Slower transaction processing, higher operational costs and an inability to scale with the growth of digital payment processing.
The problem with manual reconciliation
Despite the need for real-time processing, many firms still rely heavily on manual reconciliation methods. In fact, a staggering 90% of firms still use spreadsheets for payment reconciliation. This approach is time-consuming, inefficient, and highly prone to errors.
Beyond inefficiencies, manual processes create significant risks, such as:
- Misreported financials
- Compliance breaches
- Missed transactions
Navigating regulatory uncertainty
Unlike traditional payment systems, which operate within well-established regulatory frameworks, digital assets exist in a fragmented legal landscape. Some governments embrace them, others restrict them, and many are still figuring out how to regulate them.
This uncertainty creates serious compliance challenges, including:
- Non-compliance risks, with businesses potentially facing fines, legal scrutiny, or even banking restrictions.
- AML (Anti-Money Laundering) compliance complexities, as digital asset transactions are often pseudonymous and cross borders instantaneously.
- Varying international standards, making it difficult for companies to operate globally while meeting compliance requirements in each market.
Uncertainty about around how regulators will classify and monitor digital asset transactions can make it harder for businesses to confidently invest in modern payment solutions.
The need for scalable technology to support evolving payment systems
To effectively navigate these challenges, businesses must adopt scalable solutions that support payment systems for both traditional and digital assets. Relying on outdated technology not only slows digital asset adoption, but also, increases operational overhead and makes it harder to compete in an increasingly digital-first economy.
Why agility is key in the future of payments
To remain competitive, businesses must invest in agile payment technologies that adapt to evolving regulations and industry trends.
Key steps to maintain agility and preparedness:
- Invest in scalable, flexible solutions: ensure your payment systems can support growing transaction volumes and emerging payment methods.
- Leverage automation: eliminate manual errors, accelerate processing and enhance compliance through automated workflows and reconciliations.
- Take a proactive approach to compliance: stay ahead of evolving regulations by implementing adaptable, compliant systems.
- Collaborate with agile partners: choose payment providers that offer customisable solutions.
The path forward: adapting to the future of payments
Digital assets are reshaping payments by offering faster, borderless, and more efficient solutions that address the limitations of traditional financial systems. However, the shift to real-time, decentralised transactions is happening faster than legacy payment infrastructure can support.
To stay competitive, businesses must move beyond legacy constraints and invest in scalable technology that keeps pace with modern and evolving payment systems. This requires adopting flexible solutions that support both fiat and digital assets, harnessing automation to drive efficiency, and implementing compliance-ready frameworks to navigate shifting regulations with confidence.
Nick Botha is Global Payments Lead at AutoRek
