The views expressed in this article are solely those of the author and should not be attributed to the European Payments Council.

In an era defined by rapid digital transformation, Adyen is a pioneering force in the financial technology landscape. Mats van Rijn, Senior Product Manager at Adyen, shares succinct yet illuminating perspectives on the company's unique approach and on the strategic challenges shaping the payments industry. Join us as we explore the future of payments through Mats' expert lens.

Could you tell us about Adyen and what makes it special?

Adyen is a financial technology platform that has grown rapidly since it was founded in 2006. Adyen offers merchants and businesses a comprehensive and unified payments platform which allows users to seamlessly accept transactions across various channels and payment methods.

Adyen has a presence in over 200 countries and supports more than 150 currencies. Our commitment to payments innovation is evident through our continuous investment in new products and partnerships, which are managed by passionate and dedicated teams across the world. In 2017, Adyen secured a European banking license (later securing licences in the United Kingdom and the United States) to bolster product and service offerings such as embedded finance and banking-as-a-service.

This blend of technological prowess, global scalability and unwavering dedication to customer satisfaction makes Adyen special, empowering businesses to pursue ambitious growth plans while navigating the complexities of the modern payment landscape with ease and efficiency.

The Adyen Formula encapsulates what makes Adyen unique for those who work there. The company is proud of its diverse and agile environment, which encourages everyone to share ideas, challenge the status quo and innovate at pace.

What are the perceived strategic challenges in the retail payments market and in the account-to-account (A2A) payments market?

Retail is all about customer expectations in 2024. People want a smooth shopping experience, whether online or in-store. Most customers will drop a purchase if they can't pay the way they want. Retailers need to adapt to stay competitive, and Adyen believes that its single platform gives them an edge by meeting these needs.

Adyen started in Europe where payment habits and methods are diverse, so the company has always offered variety. One example is A2A, which has seen many recent developments. Open banking and A2A systems like iDEAL and Bizum in Spain are becoming more popular. There can be challenges in A2A payments such as navigating complex regulatory environments and ensuring operability between systems, but Adyen’s global outlook and experience means we can be flexible in accepting different payment methods and offering a broad range of options across the market.

What were the key drivers for Adyen to join the EPC?  To which ongoing and future EPC activities does Adyen expect to contribute?

Adyen has been a licensed bank in Europe since 2017. Our team has built a very modern financial technology platform which is integrated into Europe’s clearing and banking infrastructure. Adyen doesn’t serve consumers directly – instead the platform provides payment and financial service requirements for merchants and platforms. In my opinion this makes us stand out from the crowd among the existing banks in Europe.

With the expansion of offerings and closer involvement in the schemes the EPC oversees, we can hopefully take a more active role in shaping Europe’s payment future. We believe the EPC is a great forum to voice our opinions and unique perspectives going forward.

Lastly, what developments and challenges do you anticipate in the near future?

Fraud remains a significant challenge for banks, merchants and shoppers. In Europe efforts have been consistently made to combat this issue by enforcing Strong Customer Authentication and 3D Secure. Despite these regulations, fraudsters continue to evolve, and constant vigilance is required to stay one step ahead of them.

There have been numerous developments in both the industry and legislation in Europe. The enforcement of instant transfers across Europe as well as the mandatory verification of payee are effective methods to combat fraud. Adyen uses advanced risk management tools to help merchants tailor their risk tolerance and reduce fraud while maintaining minimal friction. It uses the latest technologies for Know Your Customer to identify and stop bad actors. Collaboration with the EPC to further reduce fraud is of great importance to us.