Inter-connecting the Digital Payments Ecosystem

Inter-connecting the Digital Payments Ecosystem

Just as people gather together in cities to gain the synergies of a social network, for business and leisure, there is a parallel in the “urbanization of IT,” with payments players creating infrastructure with direct access to data sources, service providers, networks and clouds to gain the performance and cost benefits of direct connections.


It doesn’t take a financial expert to notice that digital payment adoption is growing, and research bears this out: Globally, electronic payment volumes are increasing at approximately 10% annually, with double-digit growth likely to continue through 2021.

In the U.S. alone, where the average consumer makes just over 375 electronic payments per year, credit card payments grew by an average of 8% year-over-year between 2012 and 2015 and by more than 10% year-over-year in 2016 and 2017. Most of that growth was card payments replacing cash.

This phenomenon is not new, but does appear to be accelerating, driven by factors such as an abundance of new electronic payment methods—many of them layered on top of existing payment methods—focused on convenience, reliability, security, and speed.

For the companies delivering these services, meeting user expectations means investing in a distributed presence that can challenge traditional network and system architectures. Just as people gather together in cities to gain the synergies of a social network, for business and leisure, there is a parallel in the “urbanization of IT,” with payments players creating infrastructure with direct access to data sources, service providers, networks and clouds to gain the performance and cost benefits of direct connections.

Simply put, the more transaction components—data, applications, networking controls, and associated technologies—that businesses can interconnect at secure points close to their end-users, the more successful their digital payment services will be.

Choosing The Right Partner

white paper developed by the Initiatives Group and released last year by Equinix, Inc. identified three key trends shaping the worldwide real-time payments industry – and all three illustrate why businesses navigating the industry need to carefully examine their ecosystem and consider rearchitecting their infrastructure to solve some of the fundamental challenges that impact their ability to reach target users and interconnect with business partners.

Read more on PaymentsJournal>

Equinix, Inc. (Nasdaq: EQIX) operates a global interconnection platform of more than 200 International Business Exchange™ (IBX®) data centers in 52 markets in the Americas, EMEA, and Asia-Pacific. Our mission is to protect, connect and power the digital economy.
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