The new World Payments Report 2026, published by Capgemini Research Institute, offers a sobering insight for banks attending this year’s Sibos. It uncovers a looming crisis for traditional banks, with 40% of small and mid-sized merchant businesses planning to shift their payment services to nimble PayTech companies within the next 12 months. PayTechs are also leading the innovation race, with 60% adopting Generative AI across their operations, significantly outpacing the 41% of banks. Despite 66% of merchants still preferring traditional providers for their broader financial needs, banks have deprioritized merchant services, citing margin compression and high operational costs. Merchants indicate a willingness to switch back if banks can provide embedded, industry-specific value-added services and match the cost-efficiency of PayTechs.