i2c Plays Long Game in Navigating AI Transformation

Technology is swiftly transforming the payments industry, but true disruption is a long game, i2c founder and CEO Amir Wain writes in a new PYMNTS eBook, “Halftime 2025: Charting the Future of Payments.”

As we cross the midpoint of 2025, the payments industry is in an accelerated state of transformation. Rapid artificial intelligence (AI) evolution, shifting economic headwinds and accelerating M&A activity are collectively redefining the playing field. Success in this dynamic environment demands foresight and strategic agility.

AI: The Dual Engine of Efficiency and Differentiation

AI has transcended buzzword status; it is now the fundamental engine driving efficiency and delivering new value propositions. We are seeing its power manifest in two critical ways:

Efficiency Gains: AI is reducing costs in high-impact areas like customer service, fraud detection and compliance. Crucially, agentic AI is moving beyond reactive responses to proactive action, autonomously resolving routine tasks without human escalation, freeing up valuable resources.

Differentiated Experiences: AI empowers personalization at scale, delivering superior customer experiences. The guesswork is eliminated; understanding what to offer, to whom and precisely when has become a data-driven science. This streamlines user journeys, making every interaction faster, smarter and more relevant.

Consolidation: Sharpening Focus, Unlocking Opportunity

The payments sector is undergoing three distinct waves of consolidation:

Bank Mergers for Scale: Institutions like Columbia Banking System, Glacier Bancorp and CNB Financial are merging to enhance their competitive posture in an increasingly dense market.

Game-Changing Deals: Capital One’s acquisition of Discover stands out, establishing a formidable third network player. This shift promises increased innovation and a stronger network focus on partner success — a positive development for the entire industry.

Strategic Refocusing: There is a growing recognition that issuing and acquiring are fundamentally distinct businesses. The once-held belief that they could optimally thrive under a single roof has proven less effective, leading to strategic unbundling in some significant cases.

Disruption Is a Marathon, not a Sprint

While the excitement around innovative technologies is palpable, the most profound industry shifts still lie ahead. The pace of change is swift, yet true disruption is a long game. Incremental improvements, such as enhanced fraud detection or more efficient operations, are vital steps. However, the truly transformative disruption will materialize as foundational technologies mature and scale, bringing about changes by 2030 that are difficult to fully envision today.

Thriving Amid Uncertainty

Economic and regulatory uncertainty is constant. This necessitates a long-term strategic approach. Our investments are guided by a five-year outlook, focusing on where the industry is heading, not just today’s headlines. Our core mission remains clear: drive efficiency and create differentiated value. Agility and configurability are paramount, empowering our partners to adapt swiftly and confidently. By consistently excelling in these areas, we are confident in our continued leadership, regardless of future market dynamics.