The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Cheaper options opening up competition in payments

The search for alternative payments methods is picking up steam as lower-cost options become more accessible.


The payments space is undergoing rapid change due to the implementation of the second Payment Services Directive and the evolution of mobile. There is a consequent push away from credit-card payments as lower cost options become available.

Tony McLaughlin, managing director, emerging payments and business development, treasury and trade solutions at Citi, says: “Merchants are looking for new methods of online payment that reduce costs, fraud and chargebacks while delivering a frictionless payment experience.”

In the UK, HM Revenue & Customs has stopped accepting credit cards as a payment option. In the US, meanwhile, Amazon has started to offer cashback on payments that have been made in any method other than by credit card.

McLaughlin says: “Many industries pay billions of dollars a year in the cost of collections through card products, so there is extreme interest in the development of alternatives that may drive costs from percents to cents.”

For some industries, the removal of fees will provide a substantial boost to profits. The International Air Transport Association states that collections cost the airline industry as a whole around $7 billion a year in fees, with the majority from credit cards.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree