International conference in Vilnius: future payments — will new market players replace banks or will they cooperate?
The non-banking sector’s bodies have entered the retail payments market. They base their business models on technological innovations, bring new experiences to consumers and pose new questions to market regulators. This issue is addressed at the payments conference in Vilnius, which is organised by the Bank of Lithuania and Sveriges riksbank (the Swedish central bank).
“The Bank of Lithuania is currently preparing a strategy for the transformation of the national payments market and it is likely that non-banking institutions will take a significant part in it. The strengthening of competition in the payments market by introducing regulatory leverage and the creation of a level playing field by laying down the foundation for the emergence of new payment services are the strategic goals of the Bank of Lithuania”, says Marius Jurgilas, Member of the Board of the Bank of Lithuania.
“If we were not able to pay in a safe and efficient way, the economy would soon grind to a halt. Smartphones, tablets, mobile and high-speed internet connections are changing the retail payment market, and because we purchase goods and services in new ways, we also demand payment services that are suited to this new type of interaction. Banks dominate the retail payment market but are challenged by rapid technological changes as well as new players, increasing competition and the speed of innovation”, says Cecilia Skingsley, the Deputy Governor of Sveriges riksbank.
In recent years, banks are faced with ever tougher competition from the payment service providers of the non-banking sector which are reinforcing their position by offering technological innovation as well as user-friendly and flexible services, competition to the market. It is evident that the digital revolution reached the payments market as well. Market regulators are already taking actions so that payments would be made securely and market participants would operate transparently, ensuring fair competition.
Speakers and participants from the non-banking and banking sectors as well as national and European supervisory authorities are attending the international conference. Among the main topics of the conference is the growing role of non-banking payment service providers, possibilities for cooperation and competition between banks and non-banking sector institutions, the impact of the regulatory environment, and future prospects for non-banking payment service providers.
In the conference, presentations are given by representatives of the Bank of Lithuania, Sveriges riksbank, the European Central Bank, European Commission and other institutions. Representatives from the commercial banking and non-banking sectors share their insights. Speakers from such companies as Google, iZettle and TransferWise are presenting various payments innovations in the non-banking sector.