• ISO 20022: making payments smarter and safer.
• Digital assets & tokenisation: the potential for faster payments and its challenges.
• Cybersecurity: the growing importance of protecting digital transactions.
• Open Banking: how shared data empowers customers and new services.
• UK Payments: local trends and the Bank of England's vision.
• Data's enabling role: why quality data is vital for modern payments. 

Technology combined with changes to how we work, live and play are reshaping how we send and receive money. Leveraging a recent NatWest cross-industry survey with responses from more than 150 leaders across the payments ecosystem, this article looks at what's ahead for the payments industry, and what it might mean for banks, businesses, and you. We want to help everyone understand these shifts and how we can all work together to build a payments future that works well for all.

A major step in modernising payments is the global move to ISO 20022. This isn’t just a new standard; it’s a whole new way for financial institutions to communicate payment details. Instead of short, basic messages, ISO 20022 lets us exchange much richer, more structured information with every payment. This is making a big difference.

What does this mean in practice? For one, it’s a powerful tool in the ongoing fight against financial crime and fraud. More detailed information means we can spot unusual activity faster and with greater accuracy. It also makes payment investigations simpler and quicker, helping everyone know exactly where their money is at all times. For businesses, this richer data can help them manage their money better, giving them a much clearer picture of their cash flow. It also helps financial service providers create more tailored and useful services for their customers.

NatWest payments industry poll: where do people see the value of leveraging ISO 20022 data?

To harness and utilise the full benefits of ISO 20022, systems need to be built to use this detailed information from the outset. This approach unlocks the full potential of the new standard, driving more efficient operations and better outcomes – including a reduction in instances of fraud. In fact, industry sentiment strongly supports this view: a recent NatWest poll of payments experts from leading global financial institutions and UK businesses found that 59% of respondents identified enhanced fraud and financial crime management as the primary advantage of leveraging ISO 20022 data. Operating model efficiencies followed as another key benefit, at 23%. This highlights how much this new standard can help both in keeping money safe and making things run more smoothly behind the scenes.

Another exciting area that's developing fast is digital assets and tokenisation. This involves turning real-world assets, like money or even property, into digital tokens. Imagine if instead of just a number in an account, your funds were digital tokens that could be sent instantly and securely.

This could lead to faster, smarter, and cheaper payments, particularly for international transfers. It has the potential to make global trade and sending money home much smoother. However, this evolving landscape also introduces challenges. There are new types of fraud risks, and changes in how financial services are delivered. The rules and regulations for digital assets are also different across countries, which means careful handling is needed.

NatWest payments industry poll: which potential benefit of tokenisation feels most relevant to your organisation today?

Many in the financial industry are actively exploring this space, working on initiatives for tokenised deposits and taking part in international projects. This shows a real curiosity about how these new technologies could benefit customers. When organisations were asked in a recent NatWest poll about tokenisation, 42% saw faster payments and settlement as the most relevant benefit. Interestingly, a substantial 31% also said they are still in the learning phase when it comes to tokenisation, which tells us it's a complex area many are still getting to grips with.

While the development of digital currencies is recognised as having a significant impact on the future of payments, opinions are quite divided on the public's likelihood of adopting digital currency, with 44% saying no, 39% yes, and 17% remaining unsure. One possibility is that the benefits of digital currencies over fiat money simply aren’t apparent to consumers – or haven’t fully materialised.

NatWest payments industry poll: do you think the public is likely to adopt a digital currency?

As payments become increasingly digital and interconnected, the importance of cybersecurity grows. The threats are always changing, ranging from ransomware attacks to more sophisticated threats. Looking forward, emerging technologies such as advanced AI may speed up cyber-attacks, and quantum computing might challenge current security measures.

A strong defence strategy relies on automation to identify and stop threats quickly. It also involves making sure that all partners in the payment ecosystem are secure, as the overall security is only as strong as its weakest point.

Most importantly, financial systems need to be resilient, meaning they can continue to operate effectively even if there’s a security incident. 

Artificial intelligence is a hot topic, especially "agentic AI," which refers to AI systems that can act with a degree of independence. There's a clear difference between AI tools that assist people, like a co-pilot, and those that can make decisions on their own. Perhaps the biggest unknown is whether customers will embrace and trust automated systems to manage their daily financial decisions on their behalf.

It’s important to look beyond the hype around agentic AI. While it offers potential for innovation, there are also serious considerations, including the risk of new types of fraud and the costs involved in development and deployment. For these systems to be both useful and safe, they need very robust security frameworks.

For more on the role of agentic AI and payments in e-commerce and the potential impact on retailers, click here.

Open Banking is already changing how people manage their money and how businesses offer financial services. It enables you to securely share your financial data with other approved financial providers. This opens the door to many new and innovative services. 

For example, it can lead to smarter decisions for loans and credit, or more flexible ways to make regular payments, known as variable recurring payments. Ultimately, this means a better experience for customers and more efficient operations for businesses.

NatWest payments industry poll: what do you think will have the biggest impact on the future of payments?

A significant 34% of industry professionals polled by NatWest believe Open Banking and APIs will have the biggest impact on the future of payments. However, although 32% of organisations are currently exploring potential opportunities with Open Banking, and 20% have already successfully launched new products or services, a notable 37% have not yet identified significant commercial opportunities, and 10% see none for their organisation. This shows that while the potential is clear, the path to fully leveraging Open Banking is still being forged.

NatWest payments industry poll: what commercial opportunities does Open Banking present for your organisation?

In the UK, there’s been a significant shift towards mobile contactless payments and debit cards. The National Payments Vision is also encouraging new ways of making payments directly from one account to another. These account-to-account payments could offer more choice and flexibility for everyone. Real-time payments adoption is also seen as a major factor shaping the future, cited by 22% of respondents.

The Bank of England is also looking at a "multi-money ecosystem," which focuses on making digital money work even better alongside cash. They are continuously improving the Real-Time Gross Settlement (RTGS) system, which handles large-value payments between banks. Future plans include making it available almost 24/7, adding more ways for different systems to connect, and making it easier for more organisations to access. All these improvements aim to make payments faster, safer, and more reliable.

Throughout all these trends, data plays a central role. Rich, structured data isn't just helpful; it’s essential for making payments more efficient and creating new services that truly help customers. It’s about understanding what matters to people and how financial services can help them navigate life’s journey.

NatWest payments industry poll: where are your biggest data quality pain points today?

However, ensuring high-quality data can be a challenge. Poll results show that data quality pain points are heavily concentrated around reconciliations, including remittances, invoice numbers, and client monies, accounting for a significant 78% of responses. Solving these data quality issues is key to unlocking the full power of new payment technologies and delivering better services.

The payments industry is facing significant changes, but it’s also a very exciting time. Whether it's enabling someone to buy a home, grow their business, or work towards a more sustainable future, payments are at the core of it all.

To build a strong, efficient, and forward-looking payments system, collaboration is crucial. This means financial institutions, regulators, businesses, and customers all working together to innovate responsibly. The aim is to champion potential and help people achieve it whenever possible.

By supporting customers through these changes, offering clear information, and partnering to create new solutions, the future of payments can be robust, inclusive, ambitious, curious, and sustainable for everyone. This ongoing evolution will keep shaping the payments sector for years to come.

Get in touch with your usual bank contact or contact us here to learn more about how to get more out of every payment.