**Breaking News: ACI Worldwide Exec Warns Pay-by-Bank Adoption Hinges on Friction Balance**
Dean Wallace, Director of Consumer Payments Modernisation at ACI Worldwide, addressed critical challenges facing pay-by-bank adoption during Payments Unleashed in London this week. Despite being the most successful attempt yet to displace card payments, pay-by-bank remains far from posing an aggressive threat to the deeply entrenched card infrastructure, Wallace confirmed.
The executive emphasized that banks and payment cooperatives operating in multi-rail environments face a crucial test: how they transition customers from cards to alternative payment methods will determine customer loyalty and retention. Wallace highlighted the delicate balancing act around transaction friction, noting that while some friction creates customer confidence and security, excessive friction destroys user experience.
Traders and payment processors should monitor how incumbent banks navigate this transition period, as it will shape competitive dynamics across payment rails.
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FXnCO Insight
** Payment infrastructure providers and merchant acquirers should prepare for prolonged card dominance while building optionality into multi-rail platforms to capture eventual pay-by-bank migration.
Source: Finextra