The future of payments is undergoing a significant transformation, with digital transactions rapidly outpacing traditional methods. This shift is driving the global online banking market to new heights. In 2023, the market size reached $4.2 billion, and it is expected to grow to $5.9 billion by 2032, with a Compound Annual Growth Rate (CAGR) of 3.8% from 2024 to 2032.
The payments industry is evolving through two major trends: advancements in payment systems and structural shifts in payment dynamics. Payment systems are improving with innovations like instant payments, digital wallets, and Request to Pay technologies, enhancing speed and convenience. Concurrently, structural changes, including the rise of Buy Now, Pay Later (BNPL) options and cryptocurrencies, are reshaping the landscape and introducing new dynamics.
As we look ahead to 2025, understanding these trends is crucial. Here are the major trends driving this transformation:
Embracing Collaboration for the Future: Rapid technological advancements and evolving customer needs are making collaboration essential. Fintechs, banks, retailers, and regulators are increasingly working together to address industry challenges, enhance systems, and expand global access to payments. For instance, Plaid, a fintech specialising in financial data connectivity, has partnered with JPMorganChase to facilitate secure access to customer account data. Such collective efforts are crucial for building a robust and effective payment ecosystem.
Integrating Advanced Technologies and Modernising Systems: AI and Machine Learning are enhancing payment processes such as fraud detection and personalisation. Simultaneously, the shift from outdated legacy systems to modern technologies like cloud computing, blockchain, and APIs is driving efficiency and innovation. A study by Deloitte found that more than 70% of bank executives around the world think it’s really important to modernise their core systems to meet what customers expect and to stay competitive.
Embedded Finance in E-commerce: E-commerce platforms are integrating financial services within their environments, allowing consumers to make purchases and access financing options seamlessly. This integration simplifies transactions and improves customer satisfaction. The embedded finance industry in the United States is projected to grow by 33% annually, reaching $36.99 billion in 2024. From 2024 to 2029, it is expected to expand at a CAGR of 23.8%, with revenues rising to $107.51 billion by 2029.
Influence of Multinational Tech Firms in Payments: Tech giants like Google, Apple, and Facebook are leveraging their data and technology to innovate payment systems. Their influence is streamlining transactions and making them more intuitive, driving significant changes in the payments landscape. For example, Facebook introduced its Novi digital wallet to facilitate low-cost cross-border money transfers, while Google has partnered with banks and fintechs to enable peer-to-peer (P2P) transfers through Google Pay.
These trends mark a pivotal shift in the payments industry, reshaping transactions and customer experiences. To stay ahead, join us at the 15th NextGen Payments & RegTech Forum on 10-11 December 2024 at the Hyatt Regency in Austin- Texas, USA.
Discover the future of digital payments technology, cross-border payment innovations, and the advancements, impact of AI in payments and the disruptive technologies changing the worlds of payments from leading experts featuring:
Steve Kenneally SVP - Payments at American Bankers Association
Anand Mitra, North America Product Management and Global Product Delivery Head for Cross Border Payments at J.P. Morgan
Kalyani Bhatia, Global Head of Payments & PMI Go To Market Business Development at Swift
Kaue Tozzi, Global Head of Payments at Banked :
Melissa Pottenger, VP, Payment Ops at Reach
Melissa Shields, Director of Payments Strategy & Operations at Starbucks
Peter Jessiman, Director, Payment Acceptance at The Wendy's Company
Smitha Purohit, Director of Product, Blockchain, Crypto, and Digital Currencies at PayPal
Stacy Armijo, Chief Experience Officer at Amplify Credit Union
Tahir Khan Director at Prime Video Payments, Amazon
Jeff Gallo, CPFPP, Director, Global Merchant Services at IHG Hotels & Resorts
Don't miss out on the opportunity to gain invaluable insights and network with the best in the industry. Register now to enjoy a 10% discount before it expires! Contact QUBE Events at info@qubevents.com to claim the discount!
To register and access the agenda: https://bit.ly/43eQuxk
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