RPAY - Shift in payments processing sets up potential multi-year dominance for new breed - Truist

The payments industry has entered a period of accelerating change favoring share gains for digital fintechs, Truist says - setting up outperformance for years and a potential "decade of digital dominance." "While 2019's mega-mergers probably laid the groundwork for the emergence of smaller, specialized payments and (point-of-sale) software vendors, we submit pandemic accelerated the shift to what we call Omnichannel 2.0," the firm says, adding survey results are backing it up. Being digital-native (or at least digital-adjacent) matters in the fintech world, the firm says. "At a high level, we expect hundreds of billions ... to shift from a concentrated group of legacy processors to emerging digital competitors," it says. "This value transfer will be driven by demand for powerful, affordable and flexible POS software, characterized by rapid merchant onboarding, self-service functionality and next-generation omnichannel capabilities." And that trend will accelerate as the failures of the COVID-19 pandemic are replaced

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Shift in payments processing sets up potential multi-year dominance for new breed - Truist