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With merchants expected to take a hit and the world’s outlook increasingly volatile, payments firms have put on a brave face, suggesting that now more than ever there is an opportunity for competitive advantage.
President Donald Trump’s so-called “liberation day” saw the announcement of tariffs for US allies such as the UK, EU, Japan and Australia, as well as competitors like China and India, ripping up the trade norms of the past 100 years.
However, this shock to the system seems to have translated into a call to action for payments firms.
Although experts acknowledge the challenges, such as rising costs, supply chain strain and profitability pressures, many have framed these issues as a strategic opportunity for the payments industry.
Preventing outages
Scott Dawson, CEO at DECTA, pointed out that the serious challenges ahead show the need for utmost resiliency in payment systems.
“With businesses, especially SMEs, trying to navigate the uncertainty these new tariffs bring, the last thing they need is their payment systems failing, preventing them from receiving payments, paying suppliers or even paying their own staff,” he said.
“The response we saw about the Lloyds outage, where thousands were affected, really underscores this. It’s not just an inconvenience; it impacts livelihoods.”
And just as banking outages expose vulnerabilities in financial infrastructures, Dawson said, so these tariffs expose vulnerabilities in the global economic landscape.
“A resilient payments infrastructure acts as a shock absorber in times like these. It ensures that the fundamental mechanics of commerce can continue to function, even when external pressures are mounting.”
According to Dawson, the introduction of the Digital Operational Resilience Act (DORA) in the EU “is a significant step in the right direction, setting a benchmark for operational resilience”.
“We need that kind of robust thinking applied across the board. Whether it's navigating technical glitches or weathering economic storms, payments reliability is paramount.”
Competitive advantage
Kamran Hedjri, CEO of PXP, also sounded a positive note: “In this volatile environment, payments can serve as a strategic lever.”
Hedjri suggested that for retailers processing large volumes of transactions, small inefficiencies can rapidly become costly.
“Unified commerce solutions that integrate payments across channels can help businesses cut costs, improve authorisation rates and optimise routing, ensuring that every transaction supports their bottom line.”
He also pointed out that faster settlements become especially crucial as access to working capital is squeezed.
“Real-time financial insights and automated reconciliation give retailers the agility to respond quickly to changing market dynamics. Meanwhile, intelligent risk tools can reduce fraud and chargebacks without damaging the customer experience.”
Robin Anderson, head of product management at Tribe Payments, agreed, pointing out that for merchants operating across borders, the increase in duties is not just a logistical headache, but a financial one, threatening already narrow margins and forcing a rethink of their operational strategies.
“For online sellers, the knock-on effects could include reduced cart conversions, payment disputes and an uptick in chargebacks as shoppers react to unfamiliar charges or delivery delays,” he said.
“In this climate, intelligent payments infrastructure becomes a key competitive edge,” he added.
“Advanced payment routing can help merchants reduce transaction costs and avoid unnecessary fees. Faster settlements improve access to working capital, and enhanced fraud mitigation tools help protect revenue when businesses can least afford losses.”
According to Anderson, this is not just about surviving economic headwinds, it is also about using payments as a strategic asset.
“With the right tools, merchants can adapt quickly, protect liquidity and make decisions grounded in real-time financial data.”
Zaki Farooq, co-founder at PayFuture, said that “efficient international payments become a key competitive differentiator”.
“Tariffs may be out of your control, but improving approval rates to increase your profitability, settlement delays and currency conversion fees is not,” he said.
“Businesses can cut costs by optimising their payment providers, using local acquirers and offering region-specific payment methods and currencies that improve both acceptance rates and customer satisfaction.”
Farooq suggested that in this freshly volatile environment, merchants must reduce friction and control costs wherever possible. “That means using local payment methods, real-time transfer rails, and smart routing to reduce currency fees and improve approval rates.”
The need for strategic autonomy
As the dust settles, it is clear that the latest developments will only harden the conviction of those in centres such as Brussels, Frankfurt and even London who advocate reducing reliance on the US.
The argument for homegrown solutions, whether that be a digital euro or increased use of account-to-account (A2A) payments, seems to be growing stronger.
Regulators and governments looking at the Trump administration’s policy agenda may be coming round to the idea that alternatives to the US card schemes are a necessity for strategic autonomy.
