WEX Says Faster Payments Need Smarter Brakes

WEX's Ron Griswold discussed how traditional business payments are evolving. He explained that payments are transitioning from being just a part of a profit and loss statement to a driving force behind product roadmaps and customer retention. Companies are treating payments more like product infrastructure. Griswold noted that customers are becoming more creative with payments, inspired by companies like DoorDash, Uber, and Expedia.

The strategic question now shifts from "Can we embed payments?" to "Which payment capabilities create an advantage worth scaling?" This shift expands the potential of embedded payments. It also requires executives to make more complex decisions about AI, instant payment rails, regulatory exposure, and fraud.

Griswold emphasized that businesses need to match each payment capability to the right commercial use case without weakening the controls surrounding it. Real-time payments present a challenge in this regard. He stated that not all payments can be made real-time, as the faster payments move, the less due diligence can be done in between.

AI automation can also present risks. While automating inefficient processes can improve workflows, it should not make them longer. Griswold stressed that the competitive advantage in today's landscape comes from solving payment problems specific to an industry or workflow rather than adopting one-size-fits-all solutions.