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Finance

Instant payments success decided by ecosystems, not infrastructure

Instant payments do not automatically spread simply because a real-time payment network has been built, an analysis showed. Adoption speed depends more on existing national payment ecosystems, including card and cash habits, merchant participation and pricing policies. McKinsey classified the global market into three types: markets where instant payments are the main method, those where they complement card ecosystems, and those where they compete with entrenched habits. India and Brazil were cited as success cases.

Finance

Fintech job cuts: really driven by AI? Pressure to cut costs may be bigger factor

AI is being blamed for large-scale job cuts in the fintech sector this year, but profitability pressure, cost-cutting and the aftermath of past overhiring may be bigger factors, an article said. A commentary published by TechRadar said about 10,000 fintech jobs have disappeared globally this year, citing cuts at PayPal, Block and Coinbase. It said companies are linking restructuring to AI despite unclear evidence of productivity gains.

AI & Enterprise

AI upends consulting revenue model as outcome-based fees gain ground

Generative AI is changing how consultants work and putting long-standing billing systems under pressure, with clients increasingly demanding lower costs as working hours fall. As a result, outcome-based pricing is drawing attention as an alternative to hourly billing and fixed fees. Under this model, clients pay a base fee and tie the remaining compensation to agreed targets such as cost savings and profit improvements, though the approach carries risks.