According to PYMNTS.com, payments executives from Mastercard, American Express, Block, and other major players are fundamentally rethinking their approach to competition. Mastercard’s Mike Kresse reframed the CFO role around integrated data, risk, and technology, while Amex’s Kensey established a “North Star” principle that AI should work in service of people, not replace them. Block’s Boates revealed their AI-powered scam prevention systems have protected customers from over $2 billion in potential fraud losses since 2020, with confirmed scam rates remaining below 0.01% of all peer-to-peer transactions. Multiple executives warned against treating instant payouts as commodities, with Edwards cautioning this leads to a “race to the bottom” where companies have “no walls to defend” their position.
The end of scale obsession
Here’s the thing: we’re witnessing a fundamental shift in how payment companies think about growth. For years, the game was all about transaction volume and scaling infrastructure. But now? These leaders are saying that’s not enough anymore. Edwards from Ingo Money put it bluntly – if you’re just competing on fees and scale, you’re in a race to the bottom. And honestly, who wants to be in that race?
Look at what’s happening. Mastercard’s talking about integrated disciplines. Amex is focusing on strengthening customer service rather than just chasing efficiency gains. Even the payment facilitator model, as Dew explained, is becoming about unlocking possibilities for merchants rather than just processing transactions. Basically, everyone’s realizing that being the cheapest or fastest isn’t a sustainable advantage when competitors can match you.
The AI reality check
What’s really interesting is how these payments veterans are cutting through the AI hype. Amex’s “North Star” principle – AI should work in service of people, not instead of them – feels like a direct response to all the “AI will replace everything” chatter. And Wadsworth from PSCU absolutely nailed it by calling out the “magic black box” myth.
She made a crucial distinction that many are missing: data governance and AI governance are not the same thing. Think about that for a second. Companies are throwing AI at everything, but how many actually have proper AI governance frameworks? Block’s numbers tell the real story – $2 billion in prevented fraud losses with AI, but that’s because they’re using it as a tool, not a magic wand.
Fraud defense as team sport
Sampath’s description of modern fraud defense as a “team sport” perfectly captures where this is heading. The old siloed approach just doesn’t cut it when fraudsters are collaborating across borders and technologies. And the data sharing he mentioned? That’s becoming critical infrastructure.
But here’s what struck me: Boates’ numbers show we’re moving from reactive fraud management to proactive prevention. Protecting $2 billion since 2020 isn’t just about stopping bad transactions – it’s about building systems that anticipate fraud before it happens. That requires serious investment in both technology and cross-industry collaboration.
Where this is all heading
So what does this mean for the next couple years? We’re going to see more payment companies competing on specialized capabilities rather than transaction volume. Citi’s Patel said it clearly: rails, APIs, AI are just tools to help clients do business. The priority is solving business problems, not pushing technology.
I think we’ll see more partnerships between traditional financial institutions and technology providers who understand these strategic shifts. The companies that thrive will be those that build defensible positions around specific use cases and customer experiences. Because honestly, nobody wins a race to the bottom – you just end up with scraped knees and empty pockets.
