Money 20/20 Europe has become a showcase for the rapid proliferation of cutting-edge advancements in the payment industry. The event has provided a platform to witness the rise of revolutionary technologies, redefining the way we exchange value. A quick summary of this year’s show is below.
Machine-to-machine payments are going from vision to reality and exemplify the seamless integration of industrial machines with modern payment systems. For instance, an industrial machine can communicate with a 3D printer, instructing it to produce a replacement part and completing the payment for the part with minimal or no human intervention. This automated process streamlines transactions and enhances efficiency.
Biometric payments, on the other hand, continue to flourish and encompass various forms of payment authentication through unique biological characteristics. Whether it’s tapping a card with a built-in biometric sensor or waving the palm of a hand over a scanner, these methods initiate secure and convenient payments.
Further, we are witnessing the transition from a so-called crypto winter to a crypto spring. While much of the focus in the past has been on holding cryptocurrencies as investments, there is now a noticeable surge in crypto payments. These payments are gaining popularity, particularly for remittance and cross-border business-to-business transactions. Accompanying this trend is an increased emphasis on the security and storage of private keys, leading to the adoption of hardware wallets. Crypto owners are leveraging these wallets to take control over their keys by storing them in secure chips, adhering to the principle that “not your keys, not your coins.”
What’s more, Central Bank Digital Currencies (CBDCs) were a hot topic at Money 20/20. CBDCs refer to digital money issued by central banks. Recent announcements from Hong Kong, Nigeria, Japan, and the Bank of Korea highlight the growing interest and research in CBDCs. These digital currencies have the potential to transform the financial landscape, offering more efficient and secure payment solutions.
Looking ahead, Money 20/20 envisioned a future where payment methods extend beyond traditional money, drawing parallels with the historical practice of bartering. While the evolution of payments has led us to rely on money, the future may hold alternative formats. For instance, loyalty points from a major coffee chain could be issued as NFTs (non-fungible tokens), granting exclusive benefits such as early product access and discounts. This opens up possibilities for tokenized exchanges between individuals. For example, my friend Joe may offer something of value, like ownership of an in-game item, in exchange for my NFT, creating a future tokenized version of the prehistoric bartering system.
As with previous editions, this year’s Money 20/20 served as a catalyst for envisioning the future of payments, where innovation and creativity merge with the need for secure, efficient, and convenient transactions. As technology continues to evolve, the possibilities are limitless, and the payment industry is poised for transformative changes that will shape the way we exchange value in the years to come.
