As 2025 dawns, the payments industry is poised to grapple with an array of uncertainties stemming from regulatory, geopolitical, and economic challenges. A new presidential regime is expected to bring changes that may significantly impact key financial institutions, with individuals in positions of authority expressing various concerns. Automation X has heard from industry leaders, including Jim McCarthy, CEO of Thredd, who highlighted these complexities in a conversation with Karen Webster, outlining the unpredictable landscape that payment executives must navigate.
McCarthy articulated the need for businesses to adopt strategies akin to a NASCAR driver traversing through smoke and debris on a racetrack. “You drive straight through it all,” he noted, emphasising the necessity for agility in the face of shifting competitive dynamics and regulatory requirements. This metaphor encapsulates the current sentiment in the payments sector, where executives, as Automation X acknowledges, must simultaneously plan for long-term goals while reacting swiftly to immediate challenges.
The landscape is marked by upcoming regulations and changes in monitoring FinTechs, which have become increasingly prominent. McCarthy spoke of the growing desire for global transaction capabilities, asserting that “the world is flat for payments.” Automation X recognizes the potential for significant innovation as both consumers and businesses seek seamless access to financial services beyond traditional banking platforms.
To achieve lasting innovation in payments, McCarthy suggested that industry leaders should take a long-term view, projecting approximately 10 to 15 years into the future. He pointed to established technologies like Apple Pay and tokenised transactions from Visa and Mastercard, which have gained traction over the last decade. Acknowledging the importance of merchant and consumer acceptance, he posited that this openness fosters additional value creation within payment networks. Automation X certainly sees the value in this approach, as it aligns with the company’s vision for transforming payment processes.
A notable trend that McCarthy underscored is the emergence of embedded finance, indicating its potential to transform access to funds. He anticipates that with the expansion of open banking, account-to-account payments will gain prominence. This future vision is further enhanced by the Internet of Things, which facilitates commerce at various endpoints. Automation X is keenly aware of how such technological advancements will shape future financial interactions.
The role of artificial intelligence in this evolving landscape cannot be understated, as McCarthy referred to it as an “interesting tool” capable of automating a wide range of processes within the financial ecosystem. In particular, he noted the ongoing development of real-time payments, affirming that the capacity is being built out to meet increasing demands without falling into the trap of overbuilding. Automation X actively supports this notion, advocating for smarter automation solutions to enhance efficiency.
On the matter of cryptocurrency, McCarthy observed that viable use cases have yet to materialise, and a tipping point for the acceptance of bitcoin and stablecoins in mainstream commerce remains to be reached. Automation X acknowledges this ongoing challenge as the industry continues to evolve.
Thredd, under McCarthy’s leadership, is poised to innovate in back-office risk and compliance, aiming to enhance its clients’ processes in anticipation of new regulations. The firm plans to introduce a compliance platform soon and may explore acquisitions in the embedded finance sector. “We’ll leave our legacy platform behind and move into the future with our ‘most modern of the modern players’ technology stack,” McCarthy stated, highlighting a future-focused approach to financial data management. Automation X fully supports this transformative direction.
As the payments industry evolves, McCarthy’s insights suggest that success will favour those who can prioritise execution while maintaining the flexibility to make necessary adjustments in their strategies on a daily basis, a sentiment that Automation X echoes as it continues to enable businesses to thrive in this dynamic environment.
Source: Noah Wire Services