Payments Innovation Jury Report 2017

The Global Payments Innovation Jury, organised by John Chaplin, comprises 70 of the most successful industry leaders worldwide. They give a unique insider’s view into how innovation is driving change in payments globally. The report sets out the findings of the Jury on the key payments innovation trends and what separates winners and losers.

Asia is the clear leader in payments innovation. This goes beyond a ‘China effect’, with many other countries in the region modernizing their payments infrastructures and creating environments supportive of innovation.

For venture capital backed companies, there is a global shortage of growth stage finance mainly because the road to profitability in payments is more difficult than most business plans assume. Despite the growth capital shortage, direct investment by banks in payments companies is not seen by the Jury as a popular strategy.

In developed markets, investment in B2B payments is generally preferred over B2C because of the major marketing investment required to build a substantial consumer base and the difficulty in convincing those used to ‘free of charge’ to pay for these services.

The Jury sees two main reasons why payments startups don’t succeed. ‘Fail to scale’ is a major issue with many business models not being adaptable to higher volumes. And many new market entrants don’t offer any significant advance on what is already available, instead offering ‘solutions in search of a problem’.