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    INTERNATIONAL CORPORATE BANKING  |  3 POINT PERSPECTIVE

    PayTech’s future:  Fast, smart and scalable 

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    Sabry Salman
    30 May 2025

    Real-time payments, embedded finance, stablecoins and AI are redefining PayTech. From ISO 20022 to M&A-fuelled innovation, our International Corporate Banking expert Sabry Salman explores how banks, fintechs and payment service providers are modernising infrastructure, unlocking liquidity and reshaping client value in this rapidly evolving financial ecosystem.  

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    1. Real-time payments: The global baseline has shifted

    The Real-time payments (RTP) have evolved from innovation to essential infrastructure in every region, transforming the PayTech landscape. 

    In the EU, regulatory mandates are accelerating adoption: since January, banks and payment service providers (PSPs) must be able to receive SEPA Instant Credit Transfer (SCT Inst) payments, and by October, these providers will be required to send them as well. 

    In the US, FedNow is reshaping corporate treasury through applications such as real-time payroll, cash concentration and escrow disbursement. More than 1,300 financial institutions are now live on the system, with transactions averaging $540 million a day.1

    Meanwhile, initiatives like Canada’s Real-Time Rail (RTR) and ASEAN’s contact-number-based cross-border transfers highlight a global shift: speed, reach and transparency are no longer luxuries, but expectations. 

    Critically, instant payments are not just about consumer convenience. For corporates, they unlock working capital, enhance liquidity visibility and streamline financial operations. This is especially vital for small and medium-sized enterprises (SMEs), which account for 90% of the global economy. RTP are redefining the role of treasury, and banks must adapt by building infrastructure and services that enable faster settlement, smarter reconciliation and real-time liquidity forecasting. 

    To remain competitive, real-time capabilities should be embedded across all layers of bank and PSP infrastructure. Regulatory compliance is only the starting point. Institutions that go further, delivering B2B-centric use cases, will create lasting value and deeper client relationships. 

    1 Fed Now Instant Payments

    2. Embedded finance, digital wallets and stablecoins: The new battleground 

    Technological innovation is unlocking new opportunities for banks, PSPs and their corporate clients. From embedded finance to stablecoins, emerging solutions are reshaping how businesses manage payments, liquidity and operational efficiency. 

    Embedded finance 

    Embedded finance is rapidly expanding beyond retail into the B2B space. Application programming interfaces (APIs) now enable seamless integration of payment capabilities directly into business platforms, reducing friction and boosting performance.  

    Businesses that adopt embedded finance report up to a 12% increase in conversion rates and a 7% uplift in revenue.ii A key example is the rise of B2B Buy Now, Pay Later (BNPL) services – growing at over 27% CAGR– enabling SMEs to access liquidity outside conventional credit channels. iii

    Digital wallets 

    Digital wallets are also seeing rapid adoption and are set to reach 5.2 billion users by 2026.iv Their growth is being driven by innovations in interoperability, QR-code-based payments, and strategic initiatives like the EU’s Wero platform. Adoption is expanding both horizontally, with more users, and vertically, through enhanced features such as micro-loans, insurance and foreign exchange. 

    Stablecoins 

    At the same time, stablecoins are emerging as potential instruments for wholesale payments rather than mere crypto novelties.  

    Some PSPs and banks using digital asset platform Fireblocks are trialling stablecoin payments, while enterprises like WorldPay have cut settlement times by using stablecoins.v Importantly, regulatory frameworks are beginning to adjust to the changing landscape. The US GENIUS Act (May 2025) and Europe’s MiCA regulation (in force since June 2024) provide the clarity institutions need to engage at scale. The UK’s approach – regulating stablecoins as financial instruments, but not yet as payment tools – points to a phased adoption model, initially targeting treasury and settlement use cases. 

     

    ii The Payments Association 

    iii Research and Markets, B2B BNPL Quarterly Market Intelligence Service 2024

    iv Juniper Research

    v Fireblocks

    3. ISO 20022, AI and M&A: Foundations for scale 

    Regulatory mandates such as ISO 20022 and real-time payment requirements should serve as catalysts for infrastructure modernisation. Full compliance with ISO 20022 is a gateway to AI-driven services. By investing now, institutions can build the foundation to employ AI-driven advances as this technology develops over time. 

    As a faster path to innovation, companies are turning to M&A. Q1 2025 has seen a resurgence in fintech investment and M&A activity. In the US, deal count and exits are on the rise, while UK fintech funding rebounded by 20% quarter-on-quarter, driven by larger transactions.vi Although valuations have normalised, investor appetite is returning – particularly for companies with scalable infrastructure and clear paths to profitability.

    M&A is becoming companies’ preferred strategy for rapid innovation, capability building, and regional expansion, as they recognise acquiring talent, technology, and/or market reach can accelerate transformation faster than organic growth alone. Traditional banks are acquiring expertise in AI, automate compliance, and embedded finance, while VC-backed fintechs are emerging as consolidators, signalling a more mature and self-sustaining ecosystem.

    vi FinTech Global, 2025

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    About the experts

    Sabry Salman

    Sabry Salman

    Global Head of Financial Institutions

    Sabry Salman is the Global Head of Financial Institutions in International Corporate Banking. His responsibilities span across Global Banks & Fintech’s. Sabry has 25+ years of experience in global corporate banking. Prior to Barclays he worked at Standard Chartered and RBS Group. Sabry holds an MBA from Warwick Business School. He attended Mannheim Business School to complete his corporate finance education on Mergers & Restructures in the US and Europe. He is also a qualified Chartered Marketer (DipM MCIM).

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