Many countries have moved from overnight or batch-based clearing to real-time systems that process payments within seconds and operate on a near-continuous basis. This shift has reduced settlement risk and improved liquidity management, making it easier for institutions to support use cases that rely on instant confirmation, such as just-in-time payroll and instant merchant settlement. As these capabilities expand, banks and processors are replacing siloed, institution-specific platforms with architectures that rely on shared standards and greater interoperability across participants.
These infrastructure changes are unfolding alongside broader technological shifts among financial institutions. Core processing is gradually moving to cloud environments, interfaces are opening through APIs, and fraud management is becoming more centralized and data driven. Richer messaging formats such as ISO 20022 give institutions more structured data for compliance and risk control, while API frameworks allow authorized third parties to initiate payments securely on behalf of customers. Together, these developments have made the backend more adaptable and better matched to the demands of digital commerce, so that account-based systems can handle higher volumes, lower latency and a wider range of integrated services than in the past.
On the front end, the most visible change has been the proliferation of ways in which users can access their accounts. Cards introduced the idea that account-based payments could be initiated with a plastic credential rather than a visit to a branch or the use of paper instruments. Mobile banking, wallets and QR-based payments extended this idea into mobile applications, making it possible to embed payment initiation directly into commerce, mobility and lifestyle services. As these channels mature, payments are becoming less of a separate step and more of an integrated feature within broader digital services used on a daily basis.
Transit and mobility services illustrate this shift clearly. For example, in Michinori Holdings, a wholly owned subsidiary of IGPI and the holding company for a portfolio of transport operators across Japan, our bus networks historically relied on onboard cash payments and simple ticketing, requiring drivers and back-office staff to handle cash, reconcile fares and manage payment records separately from other operational systems.
As cashless options have been introduced, passengers can now use a mix of instruments, including reloadable contactless smart cards used for transport and small purchases, credit cards and QR code payments, with these digital methods often integrated with journey information and digital ticketing. For passengers, boarding has now become a matter of tapping a card or presenting a device, with the payment interaction embedded in the journey rather than treated as a separate task. Behind the scenes, fares are still settled through accounts held with banks or payment providers, but operators gain a more integrated view of usage and revenue and can align payment data more closely with scheduling, routing and service design.
Account-based systems have also seen meaningful shifts in how value is captured around them. Traditional revenue streams such as interchange, scheme fees, account maintenance charges and FX margins are under pressure from regulation and low-cost account-to-account payment schemes. At the same time, the movement of funds itself is becoming more commoditized as real-time payment rails expand and more providers can offer similar speed and reliability. In response, banks and payment providers are placing more emphasis on services that sit around the transaction rather than on the transaction fee alone, including risk and fraud management, data-driven reporting, integration with enterprise systems and tailored solutions for specific sectors such as mobility, e-commerce or tourism.
For operators that build on account-based payments, including transport and regional service providers, this has encouraged a move toward bundled and partnership driven models. Instead of treating payments purely as a back-office utility, they are increasingly embedded in broader offerings that might combine ticketing, loyalty, identity management and operational analytics. Revenue can then come from a mix of fees, cost savings and new services enabled by better payment data, such as optimized routing or dynamic pricing, while financial institutions benefit from deeper integration with client workflows rather than from stand-alone payment charges. In effect, the business model is gradually shifting from selling individual payment transactions to building and monetizing ecosystems of services that are organized around accounts.
Japan’s transport smart card schemes, such as Suica and PASMO, show what this evolution can look like in practice. Originally designed as tools for rail and bus ticketing, these cards have expanded into multi-purpose digital payment accounts that can be used for transport, retail purchases, vending machines, station lockers and other small value payments. This extension of usage has allowed operators and partners to generate additional revenue from retail acceptance, to form partnerships with convenience stores, rail operators and tourism providers, and to use the data for services such as passenger flow optimization and capacity planning. The business model has effectively moved from selling individual tickets to operating a payment enabled mobility platform, with the account at its center.
Looking ahead, the future of account-based payments is likely to be shaped less by changes to the underlying model and more by how users access it. As payment initiation becomes embedded in devices, vehicles, buildings and digital services, the account remains the anchor while the interactions with it becomes increasingly indirect. The spread of instant account-to-account payment rails, broader API connectivity and richer data standards will support this shift by making the act of moving funds even more commoditized. The competitive frontier is therefore moving to the layer above the payment itself, where firms differentiate themselves through context and service design rather than through the mechanics of settlement.
Biometric and device-based credentials point toward what this next stage could look like. NEC’s face recognition service at Nanki Shirahama Airport, for example, allows travelers who have pre-registered their facial information and payment credentials to access shops, restaurants and other services simply by presenting their face. The payment interaction itself becomes almost frictionless while the transaction still settles through the customer’s underlying account. Projects like this suggest a future in which account-based payments are triggered through physical presence or contextual cues rather than through cards or phone screens, and where transactions occur more naturally within a broader travel or retail journey. In this model, identity and authentication become the interface, and the account continues to serve as the trusted ledger beneath it.
At the backend, AI-driven cybersecurity and new cryptographic tools are reshaping how account-based systems are secured and audited. Financial institutions are already deploying models that detect anomalies in real time and adjust fraud controls automatically, and as threats grow more coordinated, these tools may run across multiple institutions to compare signals without exposing individual customer data. In parallel, elements of cryptographic infrastructure such as tokenized deposits and distributed ledgers can be introduced selectively into existing account platforms to improve data integrity, reduce reconciliation gaps and support conditional or programmable settlement while leaving the underlying customer-institution ledger relationship intact.
On the customer side, account-based payments may increasingly function as a foundation for lifestyle and public services rather than a separate financial step. A single account could support welfare disbursements, mobility spending, small household purchases and more. Although the interaction points would differ substantially, all payments can draw on the same underlying account, whether it is a vehicle verifying the driver biometrically and settling tolls in the background or a traveler using a single balance that carries identity, retail spending and insurance entitlements across borders. In each case, the account acts as the persistent anchor for value, identity rules and usage controls across settings that are becoming more automated.
Super-apps such as Grab, Gojek and Shopee point towards another pathway in which payments become a gateway to a broader lifestyle operating system. These platforms bundle transport, food delivery, commerce, insurance, credit, savings and rewards into a single environment where the user’s account is the reference point for creditworthiness and behavioral data. As these ecosystems expand, the account becomes not only a settlement instrument but also the foundation for personalization, loyalty structures and cross-service monetization. This model shows how account-based payments could evolve into multi-sector engagement platforms, particularly in regions where mobile-first consumer behavior supports deep integration across daily activities.
These developments all point to a new phase for account-based payments rather than their replacement. The ledger relationship between customers and institutions remains constant, but the infrastructure that moves funds is getting faster and more interoperable, the interfaces which trigger payments are increasingly woven into everyday activities, and the business models are shifting toward broader service ecosystems. As embedded finance, cryptographic assurances and AI-driven security mature, the act of paying may fade even further into the background while trust in the underlying account becomes even more central. The key question is not whether accounts will disappear, but how institutions and partners will design the next generation of services, controls and commercial arrangements around them.
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Zitin Bali, Analyst of IGPI Singapore
Zitin began her career at IGPI after completing a degree in Data Science and Economics from the National University of Singapore, with a minor in Political Science. She first joined IGPI as a senior-year intern and returned a year later to begin her full-time role. Her strengths lie in economic modelling, data analysis, and data visualisation. In addition to her experience at IGPI, Zitin previously interned at Monee, where she conducted market research on the payments industry, and at SCOR Reinsurance, where she developed dashboards to visualise large datasets.
IGPI Group is a Japan rooted premium management consulting & Investment Group headquartered in Tokyo with a footprint in Osaka, Singapore, Hanoi, Shanghai & Melbourne, as well as parts of Europe and India. The organization was established in 2007 by former members of the Industrial Revitalization Corporation of Japan (IRCJ), a USD 100 billion sovereign wealth fund focusing on turn-around projects in Japan. IGPI Group has 13 institutional investors, including Nomura Holdings, SMBC, KDDI, Recruit and Sumitomo Corporation to name a few. IGPI Group has vast experience in supporting Fortune 500s, Govt. agencies, Universities, SMEs and funded startups across Asia and beyond for their strategic business needs and hands-on support across a wide variety of industries. IGPI group has approximately 8,500 employees on a consolidated basis.
* This material is intended merely for reference purposes based on our experience and is not intended to be comprehensive and does not constitute as advice. Information contained in this material has been obtained from sources believed to be reliable, but IGPI does not represent or warrant the quality, completeness, and accuracy of such information. All rights reserved by IGPI.
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