A Hybrid Approach to the Future of Plastic

In this digital age, Generation Z’s preference for digital payment solutions is helping to reshape the banking landscape. A recent article from Financial Brand (When Will Mobile Banking Finally Kill the Plastic Card?) highlights this shift, emphasizing Gen Z’s inclination towards smartphones and digital wallets, which streamline their financial transactions and fit seamlessly into their digital-centric lifestyles.

Understanding Gen Z’s Payment Preferences

As we’re all well aware, Gen Z, the first to grow up entirely in the digital era, uses smartphones as their main source for managing their daily lives, including financial transactions, where digital wallets provide a convenient, all-in-one platform for payments, identification, and personal data management. Integrating payment functions into social media and e-commerce platforms caters to Gen Z’s preferences, marrying convenience with their environments.

This must be the end of physical cards, right? Well, as Mark Twain said, “The reports of my death are greatly exaggerated.” Despite the convenience of digital wallets, the transition away from physical cards is not absolute. The article wisely points out that physical cards still hold significant value. They are widely accepted, still offering a reliable payment option when digital systems fail or are unavailable, and represent a tangible symbol of financial status for many. Additionally, concerns over digital security persist, with a notable portion of Gen Z expressing reservations about the security of digital-only solutions.

Euronet’s Vision for a Hybrid Future

At Euronet, we recognize these evolving preferences and the need for a flexible, hybrid approach to payment solutions. We agree with the observations made in the Financial Brand article and see the value in offering digital and physical payment options.

• Effortless Card Management with Ren: Our Ren Payments platform exemplifies our commitment to providing comprehensive card management solutions. Ren ensures that customers can seamlessly enjoy the benefits of digital and physical cards. From card sponsorship and custom creation to fulfillment and lifecycle management, Ren covers all aspects of card management.
• Best of Both Worlds: Ren offers the flexibility to issue digital and physical cards, including tokenized cards compatible with Apple Pay and Google Pay, virtual cards for secure online transactions, and traditional physical cards equipped with EMV, NFC, and magstripe technologies.
• Dynamic Spend Controls and Real-Time Card Processing: We also provide dynamic spend controls to create unique customer experiences while enhancing security and reducing fraud. Our real-time card processing capabilities complement this, ensuring compliance and efficiency across all major card networks.

Ready for Tomorrow: Pioneering Payment Flexibility

As the financial ecosystem evolves, Euronet stays ahead by continually adapting to the changing preferences of all consumers. Our Ren Payments platform represents our commitment to versatility, offering both digital and physical card solutions to ensure everyone can manage their finances their way. As we look toward a future where digital and traditional banking coexist, Euronet is here to guarantee that choice and security remain at the forefront of your financial transactions. Join us in embracing the future of banking—flexible, secure, and tailored to your needs.

How Euronet’s Ren Payments Drives Digital Innovation

Explore the transformative role of API Gateway technology in digital banking. Learn how it empowers financial institutions with agility, security, and seamless integration for a future-ready banking ecosystem

In an era where digital transformation is not just an advantage but a necessity, the financial sector stands at the forefront of innovation. The rapid evolution of digital banking demands solutions that are not only robust and secure but also flexible enough to adapt to changing market dynamics. This is where the power of API Gateway technology becomes undeniable, acting as the cornerstone for modern digital banking ecosystems.

The Role of API Gateways in Digital Banking

API Gateways are crucial conduits facilitating seamless communication between disparate banking systems, applications, and services. Imagine a bustling city where every inhabitant speaks a different language, yet everyone can effortlessly interact, trade, and collaborate thanks to a universal translation system. Similarly, API Gateways ensure that various components of the digital banking landscape work harmoniously, enabling financial institutions to deliver frictionless and secure customer experience.

Advantages of API Gateway Adoption

Strategic Agility: API Gateways allow banks to swiftly deploy new services and adapt to market shifts, ensuring they stay ahead in the competitive landscape.

Security and Efficiency: They offer a centralized hub for managing data exchanges, bolstering security protocols while streamlining operations and enhancing customer relations.

Integration and Versatility: The ease of integrating with various technologies reduces the complexity of digital services, allowing banks to focus on innovation and core objectives.

Euronet’s Ren API Gateway emerges as a pivotal solution, perfectly aligned with what modern financial institutions require to thrive.

How Euronet’s Ren API Gateway Powers Digital Banking

Digital Banking’s Backbone: The Ren API Gateway simplifies the intricate web of digital banking, providing a platform for effortless and secure interactions across the financial ecosystem.

Accelerated Financial Services: Ren offers the agility needed to deploy new services rapidly, empowering institutions to respond quickly to new opportunities.

Navigating Financial Complexities with Ease: Ren guarantees secure and efficient data flow, ensuring compliance and enhancing customer trust in an increasingly digital world.

Future-Proof Your Financial Ecosystem: With the Ren API Gateway, banks are equipped to meet today’s demands while being adaptable to future developments in digital payments.

A Partnership for the Future

The shift towards digital banking is irrevocable, and the adoption of API Gateway technology is a testament to an institution’s commitment to innovation and customer satisfaction. Euronet’s Ren API Gateway is more than just a product; it’s a strategic ally in the journey toward digital transformation, designed to meet the nuanced demands of the financial sector.

Engage with Euronet’s Ren API Gateway

Discover the transformative potential of the Ren API Gateway for your institution. Embrace the technology that powers seamless, secure, and efficient digital banking.

To explore how Euronet can support your digital transformation journey, contact our team or visit us at https://euronetsoftware.com/.

SIMO_WHITE_PAPER_013024In an era where digital innovation often drives market leadership, our latest white paper reveals the power of Euronet’s Ren technology in transforming Mozambique’s banking sector. Discover how you can leverage this technology to not just keep pace, but lead in today’s competitive financial landscape:

•  Revolutionizing Mozambique’s Banking: Explore the journey towards a digital, inclusive financial ecosystem that’s driving economic growth.
• Euronet’s Impact: See firsthand how Ren technology has made banking services in Mozambique more accessible, efficient, and secure.
• Strategic Partnerships: Gain insights into our successful collaborations, including with Sociedade Interbancária de Moçambique (SIMO).
• Innovations at Your Fingertips: Dive into the specific Ren technologies reshaping banking—from mobile solutions to digital payments—and envision how these can be integrated into service offerings.
• Navigating Regulations: Learn how we’ve aligned with regulatory reforms and government initiatives to ensure a secure and robust banking environment, providing a blueprint for compliance strategy.
• The Road Ahead: Our vision for the future of banking in Mozambique, detailing ongoing projects and upcoming innovations aimed at further enhancing the banking experience for individuals and businesses alike.

This white paper is not just a narrative of success in Mozambique; it’s a roadmap for financial institutions ready to embrace the future of banking. Don’t miss out on this opportunity to transform your services and elevate your market position.

Ren ATM Mgmt broch StrikingTheRightBalance 2025_rev rs

Many financial institutions are looking to shift a number of transactions that were previously performed by tellers to self-service ATMs and kiosks as they strive to find ways to increase customer engagement while reducing costs.

Advancements in technology now make it possible for today’s modern ATMs to handle a wide variety of transactions as well as offer a wide variety of functions such as cardless, cash recycling, digital wallet pay-outs, and even third-party product promotions.

While it might be “nice” to implement every feature and function at each ATM location, there is a cost associated with this that must be assessed and weighed. Generally, the more features and functions that are enabled, the greater the hardware and software licensing costs.

How do you determine the right mix of features and services for your user base? Like any good plan, the answer is found through research and analytics. The best analytics in this case come from real- time monitoring of your current ATM fleet.

To take full advantage of the insights gleaned from analyzing the real-time data from your fleet, you need a fleet management system that not only allows you to capture the data, but that allows you to quickly make and send updates to your fleet with drag & drop screen changes and remote commanding. And of course, a system that supports in-demand features like contactless, P2P, bill payments and even targeted offers at the ATM.

When managed properly and designed for optimized customer experiences, ATMs have enormous potential and the capability to provide personalized, timely and engaging interactions. Euronet’s Ren Self-Service provides the comprehensive tools organization’s need for real-time ATM fleet monitoring and efficient remote management.

With all the talk about the “death of cash” it may surprise you to learn that more account holders use the ATM than any other banking channel.¹ In fact, according to a study by J.D. Power, over half of consumers used an ATM or drive-thru to get cash in 2020.² While the number of ATM transactions has declined over the past two years, the dollar amount of ATM withdrawals has grown, as has the frequency of cash deposits. This is because a significant portion of consumers still rely heavily on cash for day-to-day expenses. This is especially true for consumers in rural areas and those in lower income urban neighborhoods. It is also true of GenZ. GenZers prefer to use cash for in-person payments almost as much as they use P2P options like Venmo, and Cash App.³ Mobile payments and debit cards come second and third to physical currency as a preferred way to pay for this demographic group.⁴

In many cases, these vulnerable groups have seen the highest number of branch closures in their neighborhoods which frequently results in fewer ATMs and have been disproportionately affected by a lack of access to cash.

In support of consumers, there appears to be a grass-roots movement to protect cash as a payment instrument. Around the globe, various governments and industry groups are taking actions to preserve cash as payment instrument. The UK recently announced the new Financial Services and Markets Bill, which will ensure the continued availability of withdrawal and deposit facilities across the UK. Cash remains an important payment method for millions across the UK, particularly those in vulnerable groups, and the government’s action shows a commitment to preserving consumers access to it.⁵ The ATM Industry Association (ATMIA) is calling for universal cash deposit standards and processes. The European Central Bank (ECB) recently outlined its 2030 cash strategy to ensure that banknotes remain widely available and accepted as a competitive payment instrument that can be owned and used by all consumers in the European Union. In the U.S. there is currently no federal law that requires businesses to accept cash, but more than half of all states have passed legislation that outlaws the discrimination of cash buyers by preventing businesses from requiring credit payment.⁶ Just last month, the U.S. Congress passed the Payment Choice Act, intended to ensure continued acceptance of cash as a payment option for consumers throughout our nation. The bill requires all brick-and-mortar retail businesses to continue allowing consumers to pay with cash for purchases of goods and services up to $2,000. The bill still must pass in the U.S. Senate to become law.⁷

It’s good for the customer experience

These factors are important considerations for financial institutions as they work to implement services that meet the needs of these communities in the most efficient way possible. By adding cash recycling to a portion of a bank’s ATM fleet financial institutions can provide the needed services while realizing multiple benefits such as reducing ATM operating costs, facilitating multi-denomination capabilities, reducing customer wait times (by migrating transactions such as cash deposits from tellers to the ATM), and freeing up bank staff to perform other relationship building functions.

As branch closures expand, ATMs with cash recycling capabilities and 24/7 availability can play a vital role in providing continued services for small to medium merchant accounts who handle a large volume of cash payments. In the absence of a nearby open branch, an ATM with cash recycling capabilities can allow these valued accounts to make cash deposits when it is most convenient for the merchant regardless of branch hours. These businesses also appreciate that there’s no delay in crediting their accounts for deposits made at recycling ATMs. Making it easy and cost effective for merchants to deposit cash regularly can also serve to encourage merchants to continue to accept cash payments at their business.

It’s good for increasing efficiency and reducing CIT costs

When it comes to ATM fleet management and costs, CIT services are often the greatest expense that banks incur. Maximizing efficiency is crucial to optimize operating costs in today’s environment. By implementing cash recycling, the frequency of CIT visits can be significantly reduced resulting in a substantial savings for CIT fees. Additionally, automated cash recycling is less likely to induce loading errors that can occur with manual CIT cash loads, reducing downtime. With proper cash withdrawal/deposit analysis and planning, cash recycling can help to ensure plentiful cash levels at the ATM– reducing the incidence of out-of-service events while avoiding replenishing low volume locations too frequently and serve to improve overall customer satisfaction with the self-service channel.

It’s good for the environment

An added benefit of cash recycling ATMs is that it is a greener, more sustainable business practice. Recycling ATMs can increase financial inclusion by ensuring cash and other banking services are easily accessible in areas with few or no bank branches. And reducing the number of CIT visits and potentially reducing the number of service calls can mean lower carbon emissions directly related to ATM fleet operations. Overall, it’s a win-win-win for financial institutions, customers, and the environment.

Long Live Cash and the ATM!

We believe the rumors of the death of cash have been exaggerated. As branch closures continue to accelerate, ATMs can fill the financial services void these closures create, ensuring communities have access to cash as well as a host of other vital products and services, at a cost much lower than the cost of a traditional branch location.

With a rise in real-time payments (RTP) worldwide, banks and solution providers are rushing to fill out their offerings of digital overlay services. Digital overlay services are value-added services that utilize the rails of an RTP network to enable and showcase the value of a real-time transaction.

We’ve seen this before, back in the 19th century, as the United States committed to building a nationwide network of railroads. As the railroad system developed and stretched across the country, the US economy followed, leveraging those new rails to expand businesses. Boomtowns from east to west popped up seemingly overnight. Beyond the people and goods that railroads carried, the rails themselves were the catalyst that created new cities, millions of jobs, and countless “value-added” services these new towns needed to thrive.

We’re experiencing a modern-day equivalent in real-time payments around the world. As one of the most groundbreaking advancements in recent financial history, RTP has quickly become the hottest topic in our industry. In a real-time payments network, money is sent from one party to another via rails set up to complete that transaction in seconds. A country or region must first establish those rails via a real-time payment clearinghouse. This clearinghouse acts as the train station, sending and receiving transactions across the network and intelligently managing the traffic to stay within the tight time requirements.

Much like early railroad lines, consumers and businesses alike chase the value that these new real-time payment rails enable. The rails facilitate the transaction, but you need a digital overlay service to kick off the entire process. Request-to-pay is a common service that overlays onto a real-time payment rail, allowing a payee to request a payment from a payer. Historically, this has largely been a consumer-led service, but now businesses see the value and have quickly jumped on board. Request-to-pay is just one example of how digital overlay services create value and demand for real-time transactions.

The value of digital overlay services is two-fold. From the consumer and business side, digital overlay services bring convenience and immediate cash flow. From the bank side, digital overlay services create new revenue channels and a level of stickiness with their customers that all financial institutions desperately need right now.

REN Connect GO is our suite of Global Overlays that can help you and your customers quickly realize the value of real-time payment rails. For more information, please visit our website.

In SE Asia, cash is still the predominant form of payment. Being from the U.S. and going from paying for my coffee with cards or my smartphone to paying with cash required a mindset change. But that’s where I found myself as the pandemic exploded last year.

I wanted to use my card and phone to make contactless payments, but the acceptance rates were low. But, when covid-19 hit, I was among the local consumers afraid of encountering the virus. So we would sanitize everything we touched – all surfaces, doorknobs, elevator buttons, food, drink items, and even cash.

It has been about a year since the pandemic broke out globally, and it has caused a ripple effect on practically all aspects of our lives – from what we wear, what we eat, how we work, and how we transact with one another. Some developments have been sudden and involuntary, such as social distancing, wearing masks, limiting public transportation, and restrictions on travel. For others, it has merely accelerated the adoption of behaviors already gaining traction, such as digitization of shopping, banking, and more. Thus, the “new normal” has become a fact of everyday life.

When countries went under lockdown, we had to get used to spending a lot of time at home. As a result, working from home became the norm, and online shopping became more necessary than a luxury. However, the thought of going out for groceries or essential items brought concerns and risks of catching the virus from someone. Plus, the hassle of sanitizing oneself upon returning home is exhausting. Besides, online shopping gives consumers a choice and the ability to price compare, while the payment is secure and convenient using debit or credit cards. And there is also an option of transferring funds from bank accounts to the online shopping platform’s e-wallet. Therefore, it’s not surprising that Covid-19 has led to a surge in e-commerce and accelerated digital transformation. In fact, as far back as March 2020, contactless increased 150% compared to March 2019.

Online banking also took on more importance as consumers experiment with performing more self-service banking transactions themselves, so it is no surprise that mobile bank registrations were up 200% and traffic 85% by April 2020. Self-registering for online banking access to existing accounts, opening new current, savings, and time deposit accounts without going into the bank branch, then funding those newly opened accounts by easily transferring funds from another bank have made banking easier and faster. Even sending money domestically and internationally became painless.

After the lockdown, I always made it a point to pay using my phone or my contactless card every time I went out for groceries or essential items. In 2021, the acceptance rates of digital forms of payment have improved greatly, and no merchant has declined me! I guess it’s not surprising as the trend for contactless payments has taken off in the past year.

The experience of living through Covid-19 is changing the world in which we live and our behavior. Changes that provide positive experiences are likely to last longer, particularly those driven by convenience and well-being, such as digital adoption, value-based purchasing, and increased health awareness.

More than a year has passed since the COVID-19 pandemic became part of our lives, and our “new normal” started taking shape. Changes in our social behavior led to changes in the ways we do business. We increasingly avoided physical retail stores, opted for online shopping, and converted to digital forms of payment. Consequently, the use of cash decreased significantly.

Vaccines are once again shifting the new normal, and while some recently adopted behavior will remain, there is also a return to our former lives, including the use of cash for payments. Consider:

• Consumers who were avoiding cash due to hygiene considerations are comfortable handling cash after vaccination.
• Cash is considered by many a shelter in times of crisis.
• A considerable consumer segment—the unbanked and underbanked—continue to use cash as their primary payment method.
• The post-Covid era seems to be one of less cash, rather than cash-less.

How will the ATM participate in this new financial landscape? What will be the primary purpose of ATMs in the future, and how can financial institutions adapt to ensure they are running a profitable ATM fleet?

Evolution is the key to future-proofing the ATM. Even before the pandemic began, the ATM channel had started to play an expanded role, with services such as bill payments and mobile top-ups part of the offering. Now, with self-service being the preferred method of banking, it is time to extend the role of this powerful self-service channel even further—to become a digital payments and transaction hub. This transition will produce new functionality and new revenue streams that can compensate for the diminished frequency of cash withdrawals and turn the ATM channel into a revenue generator. Below are a few adaptations for your consideration:

• Cash-in transactions are gaining popularity. As the underbanked population with cash in their pockets seeks to participate in digital payments, the self-service terminal offers a way to deposit cash into prepaid wallets that may be used for online purchases or pay bills electronically.
• Consumers make purchases at the ATM. Consumers can buy tickets for events, local attractions, or public transportation, digital content cards, insurance, stamps, and prepaid cards—either plastic or virtual.
• Card-less transactions allow P2P cash payments to any beneficiary.
• Automated check deposits enhance customer service.
• Charity donations provide a simple and convenient way to support community service organizations.
• Services to travelers in airports, seaports, and train and bus terminals may include dispensing of foreign currencies or dynamic currency conversion.
• ATMs may act as a cash reward dispensing point for customer loyalty programs, B2C bonuses or incentives, or even lottery payouts.
• Advertising on ATM screens and receipts can provide additional income.
• Marketing Campaigns offer cross-selling opportunities to new and existing clients.
• Kiosk-type account services can reduce banking operating costs.
• Cash Recycling and Remote Key Loading can greatly reduce ATM maintenance expenses.
• While not a new revenue stream on their own, contactless, or less-contact transactions contribute to returning trust in the safety of ATMs.

As ATMs transform into digital payment hubs, they will gain an expanded significance for financial institutions and consumers, despite the declining demand for cash.

More than ever, your customers demand fast, convenient, and digital payments. Far beyond pizza delivery, consumers ordered everything from exercise equipment to cat litter to theatre tickets online – delivered straight to your door or email inbox. Classes from kindergarten through University are streamed live. Food delivery services, groceries ordered online and picked up in the parking lot—streaming movies – any movie – viewed on any number of platforms. Consumers not only expect but now presume convenience.

The slightest stumble in this instant gratification marketplace can disrupt the ideal customer experience – wait, you’re saying I have to get out of bed to find a physical credit card to complete this transaction?

Fintechs have held the edge over banks and traditional brick and mortar retailers in meeting consumer demand for convenient and fast payments. But taking an omnichannel approach to payments will allow merchants and banks to compete.

With the help of national fast payment networks, banks can compete today. However, connecting to a real-time payments network is often fraught with complexity. Does your bank have the knowledge, the skills, and the budget to connect your system to the network, all while minimizing modernization and security risks?

The most challenging aspects of connecting to an RTP are integrating with legacy systems while managing costs. On the surface, the seemingly best investment is to keep the process in-house – you already have people and technology resources, so why not leverage them to build the connectivity you need? But the obstacles with migrating to these new platforms include cross-border capabilities, retaining current card networks and payment rails, meeting regulatory compliance, integrating fraud detection, all while considering the possibility of cloud-based solutions. Are you ready to meet those tasks?

Working with a partner with Euronet’s experience and know-how and our REN Connect solution makes it easy for your bank to join an RTP network and gain all the advantages in participating in these faster payment networks.

REN Connect is dedicated to connecting participant financial institutions to your country’s real-time payments network. Available as on-premises software or in the cloud, REN Connect enables your users, like business analysts to software developers, to connect your back-office systems to a real-time network through a visual drag-and-drop interface or industry-standard XSLT code.

REN Connect specializes in transforming message types (ISO8583 to ISO20022, for example) and can be extended easily in the future to accommodate any new message types. The solution also provides access to Euronet’s REN Foundation – digital overlay services you can leverage to build products for customers that utilize your new connection to the real-time payments network.