Abstract: Opportunities abound in a complex environment.

2018 finds the payments industry at a turning point where technology trends such as mobile, open application programming interfaces (APIs), machine learning, and faster payments systems that have been under development for many years are combining to create new opportunities for financial institutions, payment processors, and retailers. At the same time, all the possibilities make it difficult to prioritize investments. Mercator Advisory Group recommends taking advantage of the continued favorable economic environment to invest in new technology but doing so in a collaborative way to achieve maximum leverage.