This report was produced in collaboration with the Australian Payments Network (AusPayNet)—the self-regulatory body set up by the payments industry to improve the safety, reliability, equity, convenience, and efficiency of payment systems in Australia.

AusPayNet and Kearney have been watching with interest the growing influence of global digital platforms such as Google, Facebook, Amazon, and Alibaba on the world economy. In particular, we have been asking ourselves about the current and future impacts of their rise on the payments industry.

Our findings are presented in three sections:

The rise of global platforms and how these are driving innovations in payments propositions
How global platforms are influencing the payment industry and the impact these trends are likely to have on all industry players
Initial reflections on how the payments industry might respond

The Internet of Things has enabled the widespread interconnection of devices, effectively taking the Internet everywhere. In today’s era of context-based payments, we believe we might see the “Internet of Payments,” given that payments are now everywhere and integrated into everyday activities.

In our view, these developments are changing the basis of competitive advantage across the payments landscape—giving rise to modular payment architectures that offer a new level of openness and interconnection.

The question remains: Who will be the first to react?