The 5 Key Takeaways from the Payments & Identity Report 2024

Here, we’ve outlined the key topics covered in the whitepaper, from the primary pain points slowing many kinds of growth, to the major regulations poised to transform the payments industry and much more.

If you’re curious about what these changes mean for your business, and how you can stay ahead of the curve, you’ll want to dive into the full whitepaper. It’s packed with insights, practical tips, and expert advice to help you make the most of the opportunities that emerging technologies will bring. Sign up now to access the full whitepaper, and get ready to take your payments strategy to the next level!

The Four Key Pain Points of the Payments Industry

• Document Retrieval: Often cumbersome and prone to errors, the retrieval of merchant documents involves excessive back-and-forth communication, leading to delays and legal risks when unredacted personal information is mishandled.
• Onboarding: The onboarding process is complex, requiring multiple steps for identity verification and compliance, often resulting in delays and inconsistencies.
• Fraud: Traditional security methods are increasingly vulnerable to sophisticated fraud, such as phishing and identity theft, posing significant risks to payment platforms. As well as the emerging threat from AI in deep-fakes and document fraud.
• Regulatory Compliance: Ensuring compliance with ever-evolving regulations requires meticulous record-keeping and the ability to respond to audits, adding administrative burden, especially in cross-border transactions.

Download your free copy of "Payments &Identity" whitepaper

• Key pain points in the Payments industry
• How identity technologies solve these challenges
• Expert insights from early adopters
• Regulatory landscape shaping the industry
  

The Emerging Technologies Helping Shape the Payments Industry

To address these pain points, digital identity technologies like verifiable credentials and digital identity wallets have emerged as key solutions.

• Verifiable Credentials: These are secure digital versions of documents/credentials issued by trusted authorities/individuals, which can be easily verified by anyone. They allow for direct, peer-to-peer verification, enhancing security and privacy as you know who the source, the verifier, and the holder are.
• Digital Identity Wallets: These secure apps store and manage verifiable credentials, allowing users to control and share their identity information seamlessly and securely. They offer centralized, secure storage and real-time verification, making the management of digital identities more efficient and user-friendly. Think about them like a digital version of your physical wallet, except you store information about yourself that is instantly shareable and not reliant on you showing your driving license or hunting for that utility bill.

How Identity Technology Addresses the Four Payments Pain Points

These technologies directly address the pain points faced by the payments industry through:

• Identity Wallets for Document Retrieval: Verifiable credentials streamline vendor document management by centralizing documents in secure digital identity wallets, allowing for instant, real-time verification without the need for repeated requests.
• Single-click Onboarding: Digital identity wallets simplify the onboarding process by enabling single-click sharing of credentials, real-time verification, and ensuring compliance with regulatory standards, reducing delays and inconsistencies.
• Fraud Prevention: By eliminating passwords and using cryptographic proofs, verifiable credentials enhance security, reducing the risk of phishing and identity theft. Digital identity wallets add an extra layer of defense with advanced cryptography utilizing the latest security standards.
• Automated Regulatory Compliance: Software APIs help PSPs connect these different technologies to automate compliance checks, simplify audits, and ensure cross-border compliance, reducing the administrative burden and enhancing operational transparency.

How Changes in Regulation Will Impact PSPs

The introduction of new regulations, such as PSD3, eIDAS 2.0, MiCA, and DORA, will significantly impact the payments industry by fostering innovation, enhancing competition, and raising standards for consumer protection and cybersecurity.

• PSD3: Will strengthen Open Banking, enhance consumer protection, regulate digital and crypto payments, and increase cybersecurity requirements.
• eIDAS 2.0: Introduces European Digital Identity Wallets, ensuring seamless cross-border digital transactions with enhanced security and privacy.
• MiCA: Provides a comprehensive framework for regulating crypto-assets, enhancing market integrity and consumer protection.
• DORA: Focuses on improving the digital resilience of financial entities by mandating robust cybersecurity measures and third-party risk management.

Download your free copy of "The Past, Present, and Future of Digital Identity" whitepaper

• The costs of traditional systems
• The regulatory demand for change
• Identity systems for every industry
• New and exciting value propositions

A Case Study in Compliance for PSPs with Truvity

The case study highlights how a hypothetical PSP, Payvity, collaborates with Truvity to ensure compliance with EU financial regulations using Truvity’s digital identity solutions.

• Implementation: Payvity uses Truvity’s platform to manage complex permissions and support compliance with AML and KYC regulations through self-sovereign identity standards.
• Workflow: The case study details the step-by-step process of using verifiable credentials to meet regulatory requirements, from document collection and verification to regulatory submission and approval.
• Challenges Addressed: The case study demonstrates how Payvity overcomes challenges such as document collection difficulties, information gaps, and non-compliance issues, ensuring transparency and regulatory adherence.

Written to Help the Payments Industry

Our whitepaper, "Payments & Identity: Pains, Regulations, and How to Solve Them," delves deeper into these topics, offering detailed insights and practical solutions to help you navigate this changing environment. By downloading the whitepaper, you'll gain access to expert analysis, real-world case studies, and actionable strategies that will position your business for success in the face of these challenges.

Don’t miss out on this opportunity to equip your business with the knowledge and tools needed to thrive in the payments industry. Download the full whitepaper now and take the first step toward a more secure, compliant, and efficient future.

‍