Colm Lyon, Founder and CEO of
Fire, an embedded payments business, explains how his regulated UK/Ireland company helps over 1,500 businesses automate and streamline payments by delivering bespoke, easy, and cost-effective solutions since 2010. Lyon also heads a family office that invests in FinTech and is involved in industry bodies.
The shift to embedded payments is driven by three major trends:
- Regulation: Changes like the Payment Services Directive (PSD) and central banks opening settlement accounts now let non-bank Payment Service Providers (PSPs) like Fire access payment systems directly.
- Technology: The move to API access lets both consumers and businesses manage accounts and payments without needing to log into bank portals.
- Expectations: The digital world now demands instant payments and real-time system updates for funds received.
The main hurdle for businesses adopting embedded payments is changing their operating model, not the technology as traditional banks often fail to offer the necessary API integration or real-time account opening, forcing businesses to seek third-party solutions like Fire to incorporate payment functionality and automate operations.
Lyon notes that while the product is consistent, every customer requires a unique implementation, ranging from one account to 10,000. FIRE is an "API first" business that focuses on understanding each customer’s specific needs and money flow.
A revolutionary trend Lyon highlights is the rise of A2A payments, where customers pay directly from their bank, skipping cards; This push payment is more cost-effective, secure, and results in less fraud than the traditional pull payment model.
As the plumbing for payments, Fire’s 1,500+ clients include major European financial institutions which, for example, FIRE provides Open Banking payment acceptance for a large UK bank and helps companies like Just Tip automatically disperse staff tips.
Looking forward, Lyon sees payments continuing to evolve away from banking apps and into third-party interfaces, like tipping an music artist directly on Spotify. To stay ahead, Fire is connecting deeply with schemes like SEPA Instant, which will allow customers to pay and get paid across the European continent in just 10 seconds.
