AITE GROUP: Interconnected Commerce - A Revolution in Value Creation

EXECUTIVE SUMMARY

Interconnected Commerce: A Revolution in Value Creation, commissioned by Equinix and produced by Aite Group, discusses the state of the global payments ecosystem and its evolution into a core component of commerce enablement. Some observations from the paper follow.

• The payments space is undergoing a systemic shift. The proprietary siloed approach that has been the standard for payments services delivery is starting to give way. More intelligent hardware, additional cloud-based systems, and broader commerce applications well beyond traditional payments functionality are redefining what is possible at the intersection of payments and commerce.
• The migration from simple value transfer via payments to complex information transfer via a commerce infrastructure that includes payments is revolutionary. In lockstep with the path taken by earlier technologies, the transformation from monolithic centralized platforms to open systems is transferring power from legacy providers to technology end users. Some current players are embracing the opportunity created by this revolution, but most still work within the existing payments environment.
• The decentralization of payments services technology is expanding value for merchants. Merchants are now able to select platforms that not only enable payments but also provide an array of tools to help them manage and grow their business.
• A new vision of the next stage in commerce enablement is emerging. A universe of interconnected commerce and payments providers will create new opportunities for the integration of payments, commerce, data, and marketing, enabling new solutions and partnerships around the globe.
• Ultimately, the interconnected commerce network will transcend today’s payments capabilities, disrupting the space and creating opportunities or value previously unimagined in in-store and digital commerce.

This white paper provides a brief overview of the evolution of noncash payments; posits a hypothesis on the future path; identifies opportunities with business-to-consumer (B2C), peer-to-peer (P2P), and business-to-business (B2B) transactions; and outlines a vision and roadmap for the creation of an interconnected commerce ecosystem.