• Nick Botha, Global Payments Lead at AutoRek


• 19.03.2025 12:00 pm
#Payments #FintechInnovation

The payments industry is transforming rapidly; transaction volumes are surging, payment methods are diversifying, and businesses are under pressure to adapt. Yet, many firms still rely on outdated systems that can't meet market demands. 

The growing role of digital assets in payments

Payment processes have drastically changed in the last decade with instant, contactless, and tokenised payments 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. Here's how these technologies are reshaping the ecosystem:

• Stablecoins are transforming cross-border payments by providing faster, cheaper alternatives. 

• Crypto and tokenised payments are shaping payment workflows by reducing intermediaries with smart contracts and instant and automated transactions.

• Central Bank Digital Currencies (CBDCs) are reshaping national payment systems by piloting digital versions of fiat currencies to modernise payments, enhancing security, efficiency, and accessibility of transactions.

The challenge: outdated payment systems

As digital assets become integral to global payments, businesses find their outdated infrastructure, manual processes and legacy systems can’t keep up with transaction volumes, evolving regulatory frameworks, and the growing demand for real-time settlement. With 83% of organisations processing, actioning, and reporting payment data in real-time, there is a shift towards faster, more responsive systems.

The problem with manual reconciliation

Despite the need for real-time processing, 90% of firms use spreadsheets for payment reconciliation. This approach is inefficient and prone to errors. Beyond inefficiencies, manual processes create risks including:

• Misreported financials

• Compliance breaches

• Missed transactions

Navigating regulatory uncertainty

Digital assets exist in a fragmented legal landscape - some governments embrace them, while others restrict them.

This uncertainty creates compliance challenges such as:

• Non-compliance risks: Potential fines, legal scrutiny, or banking restrictions.

• AML (Anti-Money Laundering) compliance complexities: Digital asset transactions are often pseudonymous.

• Varying international standards: Difficulty meeting compliance requirements in each market.

Uncertainty around how regulators will classify and monitor digital asset transactions can make it harder for businesses to confidently invest in modern payment solutions.

Additionally, there is a need for scalable technology to support evolving payment systems. With this in mind, businesses must adopt solutions for both traditional and digital assets. Outdated technology slows digital asset adoption and increases operational overhead, making it harder to compete in a digital-first economy.

The importance of agility

Businesses must invest in agile payment technologies that can adapt to evolving regulations and industry trends. By doing so, businesses can ensure they have the scalability and flexibility needed to meet future challenges.

Key steps to stay prepared include:

• Investing in scalable solutions: support growing transaction volumes and emerging payment methods.

• Leveraging automation: eliminate manual errors, accelerate processing and enhance compliance.

• A proactive approach to compliance: implement adaptable, compliant systems to stay ahead of evolving regulations.

• Collaborating with agile partners: choose payment providers offering customisable solutions. 

Adapting to the future of payments

Digital assets are reshaping payments. However, the shift to real-time, decentralised transactions is happening faster than the current infrastructure can support. Businesses must invest in scalable technology that keeps pace with modern payment systems. This requires adopting flexible solutions, harnessing automation, and implementing compliance-ready frameworks to navigate shifting regulations with confidence.