Innovation and Transformation: Key themes from Money20/20 USA and Europe

AI, Data and Partnerships: Key drivers of change

AI was a dominant topic at both Money20/20 events. However, the conversation has evolved. Instead of treating AI as an innovation in itself, the focus is now on how AI enhances existing technologies and drives value.

For example, issuers are using transactional data to create personalized experiences that meet evolving customer expectations. This includes delivering seamless checkout processes, tailored loyalty programs, and enhanced security features. Strategic partnerships are essential for achieving these outcomes. At TSYS, our mature partner program combines existing technology with collaborative efforts to deliver customer-centric solutions.

Hyperpersonalization backed by metrics

Hyperpersonalization isn’t just a buzzword; it’s a tangible opportunity that delivers measurable results. By leveraging AI and advanced analytics, issuers can analyze transactional data to predict customer needs and preferences. This enables businesses to recommend loyalty offers, refine promotional strategies, and improve customer engagement.

The growing demand for these capabilities underscores their importance. Hyperpersonalized experiences, driven by AI and data, are redefining how issuers connect with cardholders, creating deeper relationships and greater value.

Compliance: A constant balancing act

Navigating compliance in the age of AI and data-sharing systems remains a top challenge for the payments industry. At Money20/20 USA, the focus was on balancing the demands of innovation with regulatory obligations.

Privacy and security continue to be critical concerns, especially as regulations differ by region. For instance, compliance with GDPR in Europe shapes how companies manage data privacy, while evolving frameworks in the U.S. require a different approach. Ensuring a compliant environment across markets requires visibility and control over data flows. Companies like TSYS are committed to maintaining this balance, safeguarding both businesses and customers.

Real-time and cross-border payments

Instant transactions and cross-border solutions are rapidly transforming the payments landscape. FedNow’s system, highlighted at Money20/20 USA, is pushing the industry toward real-time payments, while blockchain, stablecoins and Central Bank Digital Currencies are driving faster, more affordable cross-border transactions.

These innovations aim to create seamless payment experiences while reducing costs and improving access for consumers and businesses alike. As adoption increases, it’s critical to stay informed about these technologies’ practical applications and regulatory implications.

Embedded Finance: Meeting customers where they are

Embedded finance has been top of mind for years, and this year’s events explored its expanding applications. Financial services are increasingly being integrated into non-financial platforms, enabling businesses to meet customers wherever they are—whether in a rideshare app, a retail marketplace or a transportation platform.

This trend aligns with the industry’s broader goal of improving accessibility and engagement. Discussions at Money20/20 centered on the importance of embedding financial tools seamlessly into everyday experiences to enhance convenience and customer satisfaction.

Fintech Funding: Challenges and optimism

Despite a 43% decline in fintech funding in 2023 compared to the previous year, Money20/20 Europe exuded optimism. Stabilized transaction volumes and untapped potential in B2B payments suggest reasons for hope. These factors could contribute to renewed interest and investment in the fintech space.

For fintechs navigating a challenging funding environment, understanding market dynamics and identifying opportunities in B2B payments are critical to future growth. Industry conversations highlighted the importance of adapting to current conditions while preparing for a rebound.

Takeaways: Collaboration, data and innovation

One key theme emerged from both of these Money20/20 events: collaboration is vital to driving innovation. Bringing together the right people, technologies and partners creates a strong foundation for success. Whether navigating compliance, leveraging AI, or creating hyperpersonalized experiences, partnerships remain central to achieving transformative outcomes.

Data-driven insights play a crucial role in shaping these efforts. From understanding customer behaviors to identifying opportunities for growth, actionable insights are the backbone of the payments ecosystem.

Closing thoughts

The payments ecosystem is evolving rapidly, driven by innovation, data and collaboration. At TSYS, we’re committed to meeting these challenges head-on, creating solutions that exceed customer expectations while maintaining compliance and trust. With the right partnerships and a focus on innovation, we are confident in our ability to lead this transformation and deliver value to our partners and customers.