The global payments landscape is evolving at an unprecedented pace.
Over the past decade, the combination of Electronic Money Institutions, digital payment technologies, and cryptocurrency innovations has transformed how value is transferred, stored, and managed. What was once the domain of traditional banks and card networks is now a highly competitive ecosystem shaped by technology, regulation, and a growing demand from consumers and businesses for speed, transparency, and convenience.
The rise of Electronic Money Institutions
Electronic Money Institutions have emerged as key players in this transformation. Licensed in Europe and other jurisdictions, EMIs provide faster and more agile alternatives to traditional banking. They facilitate digital wallets, prepaid cards, and online payment solutions that allow consumers and businesses to move funds globally with remarkable ease. Unlike traditional banks, EMIs operate with leaner infrastructures and digital-first models, enabling them to innovate quickly and offer tailored financial products at lower costs. The COVID-19 pandemic accelerated their adoption, as both consumers and enterprises increasingly embraced contactless payments, cross-border e-commerce, and embedded finance solutions. Today, EMIs are not just intermediaries but vital enablers of a seamless digital economy.
Regulation, competition, and the Fintech challenge
This transformation is also driving disruption across the payments industry. Traditional financial institutions face growing competition from fintechs and EMIs that combine technological agility with regulatory compliance. The payments industry, once dominated by a few large players, has become a dynamic environment defined by new entrants, partnerships, and evolving regulatory frameworks. Regulators, especially in Europe and the UK, are working to strike a balance between fostering innovation and ensuring consumer protection and financial stability. Initiatives such as Payment Services Directive 2 (PSD2) and open banking have opened the door to competition, creating opportunities as well as compliance challenges for market participants. Audit and assurance professionals play a critical role in this environment, ensuring governance, transparency, and risk management keep pace with innovation.
Crypto, Compliance, and the future of trust
Layered onto this disruption is the rapid growth of cryptocurrencies and blockchain-based payment systems. Initially viewed with scepticism, digital assets are now being integrated into mainstream financial strategies. Stablecoins, tokenised assets, and central bank digital currencies are helping bridge the gap between traditional finance and decentralised systems. For EMIs and payment providers, integrating digital assets presents both opportunities and challenges. It requires robust compliance, cybersecurity measures, and risk assessment practices. Auditors and regulators must adapt to new risks, including wallet security, transaction traceability, and the high volatility of the values of digital assets.
Amid these changes, trust remains the most valuable currency. As digital payments and cryptocurrencies converge, the role of auditors in maintaining that trust is more critical than ever. Independent assurance over systems, controls, and compliance ensures confidence among stakeholders such as investors, partners, regulators, and consumers. Audit firms must evolve, leveraging technology, data analytics, and blockchain expertise to provide assurance in a digital and increasingly disrupted and continuously evolving landscape within the payments industry. Those who can combine financial insight with technological understanding will be best positioned to guide clients through the next footsteps of transformation in the payments industry.
By Andreas Georgiou
SPL Audit (Cyprus) Limited
Managing Director
Email: andreas@splcy.com