I’ve been in the payments game for a long time, and constant change is the one thing you can always count on. But what we’ve seen in the last five years is different. It’s been a perfect storm of digital adoption and groundbreaking innovation. With a click, the pandemic forced us all into a digital-first mindset. At the same time, Fintechs and new payment rails like FedNow® have come in, not just to compete, but to redefine what’s possible. For the rest of us, the question isn’t if we need to change, but how quickly we can. This isn't just about keeping up; it's about navigating a new reality where traditional playbooks are being torn up. 

As you shape your payments strategy over the next few years, I urge you to look beyond tweaking existing models. It’s time for bold, strategic shifts that will position your institution to keep pace and adapt with an industry that’s not just changing but reinventing itself. Looking towards 2026 and beyond, here are five critical areas we should all home in on when shaping our payments strategy.  

1. Regulation and Compliance – It's Not Just a Cost Center Anymore.  

Let's be honest, regulatory compliance often feels like a necessary evil, a cost of doing business. But in payments, it's becoming a true strategic differentiator. We need to be proactive, not reactive. Take Nacha’s rules for ACH fraud monitoring for instance, hitting us in early 2026. This change is more than ticking off a box; it will take a concerted and collaborative effort to update or establish fraud prevention and operational strategies for institutions and their corporate clients. 

Then there's the ongoing ISO 20022 rollout, especially for cross-border payments. This isn't just a tech upgrade; it's an opportunity to enrich data, improve reconciliation and get smarter about fraud. And let's not forget the rumblings around open banking rules here in the U.S., potentially mirroring Europe. Smart money isn't just about preparing for these changes but also about leveraging them to find new revenue streams and improve our service offerings.  

2. Modernizing Core Infrastructure and Embracing Emerging Tech – If You're Not Doing It, Your Competitor Is.  

Our legacy is holding us back. They're slow, expensive and a barrier to innovation. Investing in core infrastructure modernization isn't optional anymore; it's survival. We must support the explosion of digital transactions and meet our clients where they are.  

Here's where we need to focus our tech dollars: 

  • Instant Payments: The demand for instant payments, whether it's FedNow®, RTP® or other networks, is growing. Offering instant payments capabilities isn't just about speed; it’s about meeting a fundamental client expectation for immediate liquidity. If you don't, someone else will.
  • Artificial Intelligence (AI) and Machine Learning (ML): This goes beyond basic fraud detection. AI and ML are essential for personalizing client experiences, automating complex back-office functions like Accounts Payable (AP) and Accounts Receivable (AR) and even predicting what our clients will need next. We're even seeing generative AI emerge as a powerful tool for fraud prevention.
  • Cloud Computing: Scalability, resilience, flexibility – that's the cloud. It’s critical for handling transaction surges and deploying new services quickly and securely.
  • APIs and Open Banking: Application Programming Interfaces (APIs) are the connective tissue of modern finance. They allow us to integrate seamlessly with Fintechs and participate in an open banking ecosystem to drive future innovation. We need to build these connections.

3. Responding to Shifting Client Expectations and Enhancing Experience – They're Demanding More and You Need to Deliver.

Clients, both consumer and commercial, expect seamless, convenient and secure payment experiences. Their loyalty is on the line.  

Think about it: 

  • Digital Wallets and Alternative Payments: Digital wallets are rapidly becoming the norm, and options like Buy Now, Pay Later (BNPL) and pay by bank aren't fads; they're entrenched preferences. We need to offer a diverse range of payment methods that clients actually want to use. As mainstream adoption grows, the ability to accept payments in stablecoins or even other forms of crypto for certain transactions could soon become a differentiator as well, appealing to a digitally native client base.
  • Personalization: One-size-fits-all is dead. We need to use data and AI to understand individual client preferences and offer truly tailored payment solutions.
  • Frictionless Transactions: The goal is to make payments invisible. Every extra click, every moment of friction, increases the chance of abandonment. Our focus must be on effortless transactions.

4. Fortifying Security and Advancing Fraud Prevention – The Stakes Have Never Been Higher.  

As digital payments explode, so does the threat of fraud. We simply cannot afford to be complacent here. We need to pour resources into advanced fraud detection and prevention, leveraging AI and ML for real-time monitoring and anomaly detection.  

Nacha’s new rules for ACH fraud monitoring put more responsibility squarely on our shoulders. A strong security posture isn't just about compliance; it's about preserving client trust, which, as we all know, is our most valuable asset. That means secure API integrations, exploring blockchain where it makes sense and pushing for enhanced biometric verification.  

5. Cultivating Strategic Partnerships and Embracing Ecosystem Thinking – You Don’t Have to Do It All Alone. 

The future of payments is about collaboration. No single institution can own the entire payments value chain. We need to be smart about who we partner with: 

  • Fintechs: They're agile, innovative and often have solutions we can't build as fast or cost-effectively in-house. Let's work with them.
  • Payment Service Providers: They can extend our reach, streamline operations and broaden our offerings.
  • Emerging Payment Networks: We need to be at the table with new domestic and international payment schemes to ensure we're connected to the most efficient routes for our customers' money.

By thinking in terms of an interconnected ecosystem, we can forge powerful relationships that drive growth, fuel innovation and ultimately deliver superior value to our clients. 


The payments landscape of 2026 and beyond is going to be truly transformative. By getting ahead on regulatory changes, aggressively modernizing our tech, obsessing over the client experience, locking down security and building smart partnerships, we won't just survive; we'll lead.  


Republished with permission by EPCOR. 

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