Payment leaders face modernisation hurdles despite confidence gap
New research suggests a widening gap between confidence and readiness among payment industry executives. Although a majority view their organisations as market leaders, far fewer see payments innovation as a key strategic priority. The findings highlight mounting challenges as firms confront legacy system constraints, cultural barriers, and a rapidly shifting regulatory landscape.
Confidence versus priorities
ACI Worldwide's survey of 500 industry executives revealed that 69% consider their organisations as leaders in payments. However, only 44% said payments innovation is prioritised at C-suite level. This disconnect suggests that belief in industry leadership does not always translate into concrete action for modernisation or transformation.
Modernisation challenges
Legacy infrastructure emerged as a leading obstacle for industry change. Only 25% of organisations are currently phasing out old payment platforms, even as 44% identify legacy systems as the dominant barrier. The report found that 55% of executives admit their firms are not making full use of existing technology resources, reflecting operational inefficiencies as well as missed opportunities.
Cultural resistance is also a significant factor. More than half (53%) indicated that internal opposition and embedded ways of working limit the pace of technological adoption and reorganisation. In addition, only 36% reported that their organisations have a clear long-term strategy for payments and investment modernisation.
Fraud and compliance pressures
The survey revealed broad concern over security, with 77% of executives citing fraud and cyber risks as principal obstacles to innovation. Compliance remains a challenge, too: 63% pointed to regulatory requirements as slowing transformation. These concerns reflect the complex environment in which payment firms operate, balancing security, compliance, agility, and customer experience.
Customer demand and technology
Customer expectations are a leading catalyst for change, as cited by 79% of respondents. Consumers increasingly demand instant, secure, and reliable payment experiences. By 2026, industry benchmarks for securely-executed, seamless transactions are likely to rise further, putting additional pressure on organisations to evolve.
The study highlights the potential shift to AI-driven automation. By 2026, artificial intelligence is expected to extend beyond fraud detection. It will underpin dynamic transaction routing, real-time anomaly detection, and systems to self-improve performance. More businesses may embed intelligence across everyday transactions to maintain competitiveness in a crowded market.
Talent and costs
Challenges in acquiring and retaining talent persist. Only one in four executives indicated their organisations are performing well at attracting, developing, and retaining the best technology and payments professionals. Cost controls also remain a factor, with 14% citing expense pressures and another 14% flagging talent shortages as critical issues for future planning.
Strategic direction
Few firms have established clarity on their shift towards modernisation. Only 36% report a well-defined roadmap guiding their investments in new payments technologies and capabilities. This lack of strategic vision could leave many players at risk, especially as demands for open banking and ISO 20022 compliance intensify in the coming years.
"It's time for payments leaders to turn confidence into action. Modernisation is no longer a long-term goal. It's an immediate need. Those who retire legacy systems and embed intelligence and agility into their platforms now will set the standard for 2026 and beyond," said Philip Bruno, Chief Strategy and Growth Officer, ACI Worldwide.