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Volume 19 (2025)
Each volume of Journal of Payments Strategy & Systems consists of four 100-page issues, published both in print and online.
The articles published in Volume 19 will be listed below.
Volume 19 Number 1
Special Issue: Developments in consumer to merchant payments
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Editorial
Gerard Hartsink, Editor -
Practice Papers
Bringing European retailer reality to the payments conversation
Atze Faas, Payments Adviser, EuroCommerce
In this paper, Atze Faas shares his perspective on merchant payments, drawing on his personal experience working for bp, a large fuel retailer, as well as his recent activity working on retail payments in the EU context. After covering the key processes for establishing and executing a payments strategy, he discusses the legislative process of the EU in general. Before diving into the current payment related files currently under discussion, he explains how Europe has non-bank payment institutions and multiple domestic schemes. He covers the lack of competition and transparency around card payments, the importance of European payment solutions, such as instant payments and the digital euro, and the acceptance of cash. He finishes with a call to all stakeholders in the payments ecosystem to keep engaging with merchants.
Keywords: merchant payments; card schemes; instant payments; digital euro; cash; payment strategy; legislative process; competition -
Integrating payment transaction data, direct from source: Opportunities and limitations for large merchants
Sam Langsford, Inbound Payment Specialist, Ingka Group
Within the world of payments, the perceived importance of data continues to increase. In particular, there is a stronger desire for decisions to be data-driven and to leverage technology to improve financial performance. This paper discusses how large merchants can utilise their existing relationships with payment providers to collect high volumes of raw transactional data, straight from the payment provider’s own system. Such data can be utilised to address numerous paymentsrelated profitability challenges as well as to support strategic business plans more broadly. This paper describes a wide range of business use cases that may be facilitated by obtaining and integrating payment data, including process efficiencies, cost control, customer profiling, identifying revenue growth opportunities, and fraud insights. It also discusses the advantages of taking an in-house, raw-format approach to the gathering of payment transactional data, including avoiding added cost on the payment service fee, synergies in internal processing of data to universal standards, and ultimate control of the data once obtained. The paper goes on to address the essential challenges to overcome, notably management engagement and investment in the required infrastructure, and the risk of unrealistic expectations. Finally, the paper encourages large merchants to recognise the high potential value of payment transactional data, and to consider the use of such data in new and more expansive ways.
Keywords: acquiring; payments data; reconciliation; data-driven decision making; data integration; data warehousing; payments cost -
The strategic importance of payment data for merchants in the fuel retail industry
Peter Lambrechts, Services and Cards Payments Applications Manager Fleet, Kuwait Petroleum Belgium
The fuel retail industry is undergoing a profound transformation driven by rapid technological advancements, evolving customer expectations, and the pressing need for sustainability. No longer confined to traditional fuel dispensing, modern fuel retail sites are evolving into multi-functional mobility hubs that offer a variety of services, energy types and transport solutions. In this dynamic landscape, data have emerged as the cornerstone of operational efficiency, customer satisfaction and sustainable growth. For payments professionals, leveraging data effectively is essential to optimise merchant payment systems, mitigate risks and support these evolving business models. This paper provides seasoned payments professionals with actionable insights and best practices for leveraging data within the fuel retail industry’s payment ecosystems.
Keywords: payments; data; merchants; fuel; retail; artificial intelligence -
Strengthening the core: What is next in banking to combat fraud?
Mats van Rijn, Product Manager — Banking Pay-Ins, Adyen Madrid
This paper examines how fraudsters misuse the banking infrastructure to their benefit, particularly through methods like authorised push payment fraud and the exploitation of the direct debit infrastructure. Banks, payment service providers/merchant acquirers, scheme owners and clearinghouses each have a role to play as critical players in combating this type of fraud, but too little has been done so far. To tackle this growing threat, the paper outlines actionable changes, ranging from enhanced regulatory frameworks to tailored merchant strategies. These changes can be made by each player to address and reduce the gaps in the banking infrastructure and the relevant payment types going forward, providing a roadmap for a more secure payments ecosystem.
Keywords: payments; bank transfers; direct debit; authorised push payments (APP); fraud; merchant; banking rails; anti-fraud strategies; payment fraud frameworks -
The role of instant payments and central bank digital currencies in transforming merchant cash management
Vidit Maniyar, Software Engineer, San Jose State University
The emergence of instant payments and central bank digital currencies (CBDCs) is poised to significantly reshape treasury management practices among merchants. These new digital payment models promise near real-time settlement, reduce counterparty risk, and could lower transaction costs, all of which have implications for merchants’ liquidity and working capital strategies. Nevertheless, their adoption also entails new complexities around technology integration, regulatory compliance, and the interplay between multiple payment rails (card, e-money, instant payments and CBDCs). This paper explores how instant payments and CBDCs could transform merchant cash management, focusing on cost efficiency, liquidity and operational risk. Drawing on examples from regions with live real-time payment systems, the discussion examines how faster settlement cycles can streamline forecasting and reconciliation processes. It also highlights new considerations for fraud prevention, cyber security and treasury infrastructure investment. Finally, potential opportunities around programmable money in the case of CBDCs — such as automated micropayments and smart contractbased transactions — are discussed, detailing how these capabilities could enhance treasury operations. The paper concludes by outlining strategic steps for merchants, including close collaboration with financial institutions and payment service providers, agile technology adoption, and a robust regulatory compliance framework.
Keywords: instant payments; central bank digital currency; treasury management; erchant cash management; liquidity; digital payments; settlement -
From theory to reality: The varied and often unintended consequences of card payment surcharging
Maja Milosavljević, Vice President, Head of Business Consulting, KAE
This paper examines the practice of surcharging card payments, which is designed to increase transparency and reduce the cost of card acceptance for merchants. However, the theory behind surcharging does not always align with its outcomes in practice. Despite its intended benefits, such as encouraging cost-effective payment methods and reducing merchant service fees, the global implementation of surcharging has produced mixed results. While surcharging is legal in certain markets, like Australia and the USA, it often leads to overcharging by small merchants, a lack of consumer benefits, and regulatory challenges. This paper explores the current state of surcharging across key markets, identifies the main beneficiaries of the practice, and highlights the need for stronger regulation of payment acceptance costs. Ultimately, it argues that surcharging has failed to meet its goals and that a more competitive and regulated payment ecosystem is necessary to achieve genuine transparency and cost reductions.
Keywords: surcharging; interchange; payments; merchants; regulation; merchant service fees; acquiring -
Agentic commerce and payments: Exploring the implications of robots paying robots
David Birch, Principal, 15Mb, and Debbie Gamble, Group Head, Chief Strategy Officer, Interac
A new frontier for payments is emerging where the ‘traditional’ world of machine-to-machine and automated payments intersects with the rapidly evolving world of artificial intelligence (AI). As the bots evolve from simple chatbots to intelligent agents, known as Agentic AI, they will evolve from machines (in the most general sense) under our control into robots capable of making their own decisions and, by implication, their own payments. This is where we see an emerging demand for robot-to-robot (R2R) payments and the commensurate need for a strategic response from the payments sector to meet this need. While early experiments in machine payments have used existing mechanisms (eg blockchain and payment cards) it is not clear that these mechanisms can satisfy the needs of the emerging sector. This paper extends a taxonomy of payment types to include AI and looks at the specific needs of the R2R subsector. It presents some of the opportunities for FinTechs to create new products and services to complement the offerings of the ‘traditional’ players at the intersection of AI, machine payments and financial services. It concludes that the smart wallet (ie a digital wallet that can be operated by a robot) will be the central orchestration mechanism. We see the potential for a new payments infrastructure emerging to both re-energise past propositions (eg micropayments) and create entirely new ones (supply-chain currencies). New transactions and new trade mean new prosperity. With the right governance in place, the payments industry can explore this entirely new frontier to the great benefit of the economy as a whole.
Keywords: payments; AI; bots; agents; M2M; R2R; smart wallets; open finance -
From cash to gigabytes: The European evolution in payment technology from a merchant perspective
Gert Huizinga, Senior Consultant in Electronic Payments
It has been about 40 years since PIN-based card payments first appeared in Europe, marking the start of a major shift in how transactions are handled. Since then, we have moved to more advanced systems, like contactless and mobile-initiated payments. Each step in this journey has not simply changed the way that customers pay, but also how merchants interact with payment technologies, bringing with it a fresh set of challenges and opportunities for merchants. As merchants have adapted to these technologies, they have learned valuable lessons, particularly as regards customer experience, transaction security and payment processing speed. This paper explores these milestones in the history of payments from the merchant’s perspective. The paper will highlight the key takeaways from each stage of the evolution and how merchants responded to changes in consumer behaviour and technological advancements. Finally, the paper will offer a preview of innovations in the payment landscape that are set to impact merchants in the years ahead.
Keywords: merchant payment history; PIN-based payments; contactless transactions; payment technologies; mobile payments