Businesses need to understand their target audience's needs and preferences before adopting a new payment feature

Cloud technology also empowers payment service providers are evolving payment landscape, ahas the potential to drive exponential growth.

Aanchal Ghatak
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Screenshot 2023 05 22 at 4.53.19 PM 11zon 550x300

In the dynamic and changing payment landscape, cloud technology enables suppliers of payment services to develop new value propositions and competitive advantages. In an interview, Sudhindra Magadi, CTO, Wibmo, A PayU Company, talks about the changing scenario of the payment ecosystem. Excerpts:


Could you highlight cloud tech's role in driving payment modernization?

Rapid digitization has compelled different industries to adopt cloud technology. While the adoption of cloud technology has been steady in the payment industry, the outbreak of the pandemic accelerated its adoption. With the use of cloud-based solutions, payment service providers can offer faster, cheaper, more secure, and more reliable service to their customers. Cloud technology enables the payments industry to make efficient decisions and plays a crucial role in redefining the future of the payment ecosystem.

Cloud adoption offers payment service providers access to innovations such as machine learning, artificial intelligence, and the Internet of Things. Cloud-based networks can facilitate payment service providers' exchange of data and information among payment participants. It supports new payment ecosystems and business models, such as open banking, platform banking, and embedded finance.


 What is the changing scenario of the payment ecosystem?

The payment ecosystem is rapidly changing with the introduction of new payment methods and technology. Tech advancement has enabled payment technology companies to play a prominent role in the payment industry. In the past, payment processing was only about facilitating the transfer of funds; the latest changes in the payment processing world are changing the customer experience and enabling business owners to manage their businesses with ease. The payment ecosystem is on the cusp of revolution, driving digital transformation across all sectors and industries. The ecosystem is made up of many stakeholders who interact with each other during the payment transaction process. The democratisation of payments has led to the explosion of the embedded finance model and affected customer financial interactions throughout their digital channels.

 Innovative features that are being introduced to add more value for customers


Innovation in the payment ecosystem has made it possible for anyone to conduct easy and secure transactions both in person and online. Some innovative features include Buy Now, Pay Later (BNPL), crypto, biometric payments, cross-border payments, contactless payments, and peer-to-peer payments. Businesses need to understand their target audience's needs and preferences before adopting a new payment feature.

Why are wallets exploring several monetization paths?

In order to maximise profits, wallets have started looking at other avenues of making money. They are entering other payment arenas such as bill payment, merchant services, and remittances. They are also offering a more comprehensive range of financial services, including investment and wealth management, lending, and insurance.


Many of the wallets are being used by the next generation, and they would like to have all the services in one place.

How will digital payments fare in 2022, and what is the outlook for 2023? 

The payment industry will undergo a huge transition in 2023 owing to changing consumer behaviour, new regulations, the introduction of new payment methods, and the growing prominence of new payment services. The increasing usage of cashless payment methods has changed how acquirers, processors, and payment service providers function.


After witnessing many significant developments in 2022, the payment landscape will see an upward growth trajectory in 2023. Some trends that are driving the payment sector are:

  1. Increasing the adoption of digital wallets will make payments with just one click simple.
  2. Payment services will have to offer "buy now, pay later" (BNPL) methods to ensure they don't lose out on sales.
  3. Transactions via wearables, including wristbands, keychains, and watches, will increase.
  4. Democratising cross-border payments through the adoption of blockchain
  5. CBDC will play a crucial role in the days to come.

Highlight some initiatives taken up at your company to deliver a superior customer experience.


We have taken several initiatives to improve the customer experience, like

  • Tokenization of the cards: We have built a token vault that is being used by many of the banks, aggregators, and e-commerce companies to store the cards in tokenized form. This way, customers can transact safely.
  • Instead of using OTP as a means of authentication, we have built systems that can help with biometric authentication. We are moving towards frictionless authentication.
  • Risk-based authentication models reduce fraud.

Talk about the latest developments that companies need to pay attention to right now.


In the payment landscape, companies need to pay attention to consumer preference and safety measures to offer best-in-class service. Some of the latest developments in the payment landscape are buy now, pay later, embedded finance, data safeguarding, and a focus on sustainability by offering eco-friendly payment modes.

What are the trends that will drive the customer experience?

The payment landscape is continuously evolving due to the rapid development of technology and changing consumer preferences. Customers now expect a seamless and secure payment experience when doing transactions online. Trends that will drive customer experience in 2023 have been listed below:

  1. Peer-to-peer payment apps can be standalone services that offer an easy payment method with features to help users manage their finances.
  2. Increasing usage of automated software to secure and optimize transactions
  3. Introduction to fraud management tools
  4. traditional banks to collaborate with fintech startups to offer banking services through APIs.