Expert insights: Is the future powered by “invisible” payments?

The world moves fast, and payments are expected to move faster. Consumers make multiple transactions every day, a reported 37 purchases and 10 bill payments each month. With so much to juggle, consumers don’t want to stop and think about how each of these transactions are happening. Much like how they operate in the digital world, they expect money to move securely, accurately and instantly, without friction to slow them down.

While many in the industry point to embedded payments as the next evolution, Deluxe CEO Barry McCarthy believes this shift in expectation points toward something even more intuitive: invisible payments. In a recent fireside chat, McCarthy explained how Deluxe is preparing for a future where payments are instinctive and AI helps create practical value across the payment ecosystem.

What does “invisible payments” mean to you, and why does that language matter?

Barry McCarthy: Everybody talks of embedded payments, but I think a better description is “invisible payments.” That’s what it’s really about: how payments occur automatically, where it doesn't even have to be a thought. [For example:] How am I going to pay? Which card am I going to use? Have I put my credential in or not? Am I going to have to punch in all my card number information? We're quickly moving to a world where we have this notion of [transactions] being automatic.

If we think of [financial transactions] in isolation, we’re missing the point. That's not how consumers behave. They just want to pay in ways that are seamless, flawless and with no risk. They’re not thinking, “Hmm, I really want to use my Mastercard today.” They just think, “I want to get this hamburger.”

People have been talking about it forever, but if you look at the way we [in the industry] market ourselves, you wouldn’t think we’ve actually adopted the idea of truly invisible payments.

What will it take for payment providers to keep pace with that expectation?

McCarthy: The pace of innovation and change in our industry is profound — and it's accelerating. For businesses, it's about how you go faster and continue to have a leading product that gives you differentiation so you can win in the marketplace without having to complete solely on price. We've found success by investing to get ahead of the curve. We've invested in a huge API set for our core business. We’ve invested in marketing dollars. We've invested in the overall platform of how we go to market. And the recent acquisition of Celero will be a great differentiator for us in the market. I suspect that not a lot of people think about Deluxe as “leading edge.” They may still think about us as this check company. And while we do that, we really are at the leading edge.

We fundamentally believe that AI is a set of tools that can be harnessed to deliver business value. I'll give you an example: Our B2B Payments business manages an average of $2 trillion a year in payment volume. There are literally billions of transactions we are receiving annually on behalf of billers. When you're receiving billions of physical payments every year, there are a number of them that we would consider fragmented payments. Incomplete information would automatically kick that payment out for a manual review cycle: an expensive process that takes days to get the data to match. We’ve taken out all of that work by applying AI technology and that has helped reduce manual intervention by two thirds. It reduces risk and liability, and more importantly, it helps the biller get paid faster.

As payments become faster, more automated and less visible, how do you maintain trust?

McCarthy: I think the real way you build trust is by delivering on the promise you make with every transaction. We work hard at being very transparent about how we use data, what rights we have, what rights we don't have, and using data in a safe way that’s responsive to consumer demand and need. If your promise is to deliver a transaction at with speed and certainty and perfection, we do that — all day, every day.

What should the payments industry prioritize over the next 12 months?

McCarthy: First, the industry needs to have a clear strategy on cybersecurity. I don't think any of us really understand the depth of risk we face. Second, we need to find ways to productively apply AI, not just for cybersecurity, but to build new products and deliver better service to customers so that our industry can continue to grow. Third, we need to find ways to embed payments and make the notion of invisible payments come alive. If we make progress on those three things, we'll make a ton of difference. [If we work to] protect the infrastructure, leverage new tools available to us, and continue to grow the size of the pie, we all win.

The future of payments will not be defined by how often people notice payment technology. It will be defined by how confidently they can rely on it. The winners will make transactions feel simple while managing the security, intelligence and infrastructure behind it with exceptional discipline.