Payments In 2024: 5 Predictions For The Year Ahead (2024)

FAQs

Payments In 2024: 5 Predictions For The Year Ahead? ›

In 2024 we expect more merchants will take pay-by-bank live as part of their cost optimization efforts. While bill pay will continue to be the preeminent use case, acceptance is poised to grow in traditional e-commerce verticals like apparel and marketplaces.

In 2024 we can expect to see a shift towards more regionally focused payment solutions, accompanied by heightened technology-driven modernization.

Q: What trends should we anticipate in the future of Payments? Some notable trends include the rise of Central Banks Digital Currencies (CBDCs), increased usage of digital wallets, the growth of cross-border payments, and the acceptance of cryptocurrencies.

In 2024, we predict a significant uptick in enterprise adoption of biometric payments with end-to-end encryption, which removes third-party interference and allows for more secure collection of biometric data. More financial assets to be tokenized.

5 Treasury Technology Trends in 2024. According to a recent Treasury survey on technology trends, businesses preferring AI/ML and predictive analytics more and more when it comes to automating Treasury processes; about 50% of these companies rely on cloud-based SaaS and APIs.

The Global Payments Report 2024 offers a snapshot of today's payments landscape: globally, by region and in 40 select markets. The report tracks consumer payments when shopping online and at the point of sale, identifies key payment trends, and projects future scenarios for payment method shares as well as market size.

By the end of 2025, inflation is expected to be back on central bank targets in most major economies. GDP growth in the United States is projected to be 2.6% in 2024, before slowing to 1.8% in 2025 as the economy adapts to high borrowing costs and moderating domestic demand.

Also, mortgage rates are still much higher than we've been used to in recent years. In May 2024, the average 2 year fixed rate is 4.74%. While this is a significant drop from its July 2023 peak of 6.86%, it's still much higher than December 2021 when was 2.34%. Find out more in our guide to the Best mortgage rates.

Stronger inflation and growth reaffirm our view of a cautious easing cycle from the Fed. Hence, we now expect just two interest rate cuts in 2024 before four further cuts next year. We see a policy rate of 3.875% by year-end 2025.

What is the outlook for the payments industry? ›

In the coming year, the payments industry will be confronted with high levels of risk, intensifying regulatory scrutiny, and significant changes in global standards. The fast-changing payments industry is on the cusp of a new “decoupled era,” ¹.

On January 31, 2024, the CFPB published an NPRM that would prohibit covered financial institutions from charging consumers fees for instantaneously declined transactions. These types of fees are typically referred to as non-sufficient funds fees or NSF fees.

The main findings are: China's new payment system is here to stay. It will continue to grow domestically and globally, following Chinese travelers and consumers abroad. New technology makes possible the movement of the payment system away from banking and into technology and social networking.

Fintech increasingly provides financial stability during uncertain times. The economic downturn of 2022 saw people gravitate to fintech apps to better deal with financial instability and economic uncertainty. 56% said economic factors make them more reliant on digital financial tools to manage their finances.

Artificial Intelligence and Machine Learning. The worldwide market for AI in fintech is a growing industry expected to reach an astounding $26.67 billion by 2026 while maintaining a CAGR of 23.17% from 2021 to 2026. More than 90% of international fintech businesses already extensively depend on AI and machine learning.

More Control Over Payments

Another trend in cash management for 2024 is having more control over payment. More businesses are focusing on implementing payment hubs or even establishing in-house banks for better management of their payments.

In 2050, the payments ecosystem (acquirers, PSPs, facilitators, and aggregators) will revolve around creating integrated capabilities within an ecosystem of partners to truly optimise the customer experience and deliver a seamless, personalised payments journey from awareness to purchase and long-term retention.

The company expects net revenue growth to be at the low end of low double digits for 2024, compared with previous guidance for growth at the high end of low double digits, according to a presentation Wednesday.

One of the prominent contactless payment trends is that smartphones can now act as mobile point-of-sale (POS) terminals. This contactless payment solution also called the mPos solution for accepting payments anywhere. Financial institutions should build mobile POS capabilities into their apps.