Q&A with Worldline’s David Daly
As Worldline is the 4th largest payment processor in the world, the company is in a unique position to see and understand trends in the payments marketplace long before they become evident at ground level. What are some of the changes that you see that are eminent but which merchants may not yet be aware of or preparing for?
David Daly, Worldline
During 2024, especially with challenging economic conditions in many regions, we really saw that two of the top priorities for sellers have continued to be attracting people into their stores (whether physical or online) and then converting those visitors into sales. And what is starting to emerge is that the traditional view of omni-channel shopping (which has really meant a combination of in-store, online and mobile) is expanding to cover many more channels. Social commerce, where people buy via social media posts or livestreams, has really taken hold, and other channels are following close behind: from conversational commerce via a chat platform through to in-car payments and, beyond that, virtual and augmented reality shopping experiences. These new channels are providing new ways for sellers to attract consumers. But one key in converting them to sales will be offering an integrated, seamless payment experience that perfectly suits the channel. On top of that, providing a seamless omnichannel experience that allows consumers to effortlessly move between all of these channels will be key.
Customerland
The growth of marketplaces is presenting an entirely new array of opportunities for merchants but there are also a unique set of challenges that come along with this format. How is Worldline addressing those challenges and thus, enabling merchants to fully take advantage of marketplace selling? 
David Daly, Worldline
What I think is interesting is that we are seeing more and more merchants choosing to become marketplaces themselves. Sometimes this can be to allow their customers to buy and sell second-hand goods – both to support reuse and protect the environment, but also to help their consumers with their personal finances by buying second-hand or selling unwanted products to supplement their income. In other cases, retailers are creating a platform on which brands or even other retailers can sell. However, becoming a marketplace also creates new challenges around payments. In particular, traditional digital payment methods are highly optimised for merchants to accept payments, but don’t offer the same great experience for paying out. In addition, merchants need to comply with KYC and tax reporting requirements. This increasing significance of marketplaces and the special payment-related requirements they present, is one of the reasons Worldline has invested in our partnership with OPP who have a strong background in addressing these unique marketplace needs.
Customerland
How should merchants be preparing for the regulatory changes that are coming in the near future?
David Daly, Worldline
I would say that 2025 will be the year to pay close attention to four regulatory changes that are on the horizon:
Firstly, there is the Eco-design for Sustainable Product Regulation (ESPR), which is creating new legal obligations for managing the product lifecycle of certain goods.
Secondly, the eIDAS 2.0 regulation will equip EU citizens with a digital identity that they can use across the EU. This will make it possible to provide a streamlined buying experience in cases where identification is required today, for example when buying age-restricted goods, or providing your driving license when hiring a car.
Thirdly, in the slightly more distant future, PSD3 will bring changes to Strong Customer Authentication (SCA) requirements, providing more flexibility without compromising trust and security. Merchants will therefore be able to provide a more frictionless payment experience in many cases.
Fourthly, whilst the implementation is not likely to happen until 2028, merchants should start considering how the Digital Euro initiative may impact them, as the current proposals are that the Digital Euro could have legal tender status and acceptance could be mandatory for most sellers.
In addition, it is worth noting that there will be a continued push by governments everywhere on topics relating to sustainability and, in particular, reducing carbon emissions. Worldline sponsored a study in 2024 that examined the most effective ways to achieve a reduction in the carbon footprint of payment acceptance. One key finding was that digital payments are significantly less polluting than the use of cash. However there are also some important ways in which digital payments can be made even more environmentally friendly. Firstly, avoiding the printing of physical receipts could lead to a 43% reduction in CO2 emissions for an in-store payment. Secondly, switching to virtual cards (and therefore avoiding the production of the plastic bank card) could provide a 34% reduction.
Customerland
Open Banking is a hot topic and yet is so far-reaching conceptually that many merchants, payment processors and even larger financial institutions are struggling to find proper footing and traction. What is Worldline’s view? What initiatives & directions is Worldline undertaking to enable Open Banking through its network and partners?
David Daly, Worldline
From a payments perspective, it is clear that Open Banking by itself has not created an attractive payment means for consumers. Having said that, what we have seen is that it can provide the “behind-the-scenes” payment rails, provided that other important aspects (user experience, dispute management, etc.) are also taken care of. It is one of the reasons we launched Bank Transfer by Worldline – to provide merchants with a simple way to accept A2A payments online.
This innovative solution, based on our Open Banking assets, particularly caters to businesses that handle high-value transactions, such as those in speciality retail, the public sector and B2B payments.
More broadly, there are many interesting use cases for Open Banking based around the sharing of transaction data. For example, we have worked with partners to implement a carbon tracker that can estimate a person’s carbon consumption by analysing their transaction history. And with a another partner we have used Open Banking to provide improved credit scoring that is more accurate, faster and with increased security.
Customerland
What are one or two highly effective-yet widely under-used tactics that you would like to see merchants leverage in the coming year?
David Daly, Worldline
I would call out two payment trends that are already quite mature but also currently underutilised in my view.
The first is SoftPOS solutions, where a standard mobile or tablet can be used to accept payments. I think traditionally this has been seen as a low-cost option for small or micro-merchants (or sometimes as a backup option for a traditional POS). However, we are seeing more and more merchants understanding the potential it has for assisted selling: freeing their employees from having to sit behind a counter and instead being able to roam around the store, interacting with customers, giving them advice, and showing them products. Then, when the customer decides to buy, they can take the payment directly there and then, without forcing the customer to go and wait in line to pay (which is not only a poor experience, but also risks losing the sale).
The second is network tokenisation. I don’t think anyone likes having to update their card details when it expires. Whether it’s for a subscription service or a retailer offering one-click ordering, having to update your card details when you get a new card is simply a frustrating chore. Network tokenisation eliminates this burden, making life easier for consumers.
David Daly is Head of Worldline Discovery Hub, Group Strategy
Photo by Murray Campbell on Unsplash
