The future of payment technology holds many surprises for global business industries. We can expect numerous opportunities and benefits for businesses in the constantly evolving modern landscape of the finance industry. With the rising trend of online businesses, the need for fast and efficient payment services is evident.
Businesses nowadays prefer technology such as mobile wallets to streamline transactions and speed up checkout procedures. Moreover, the inclusion of artificial intelligence (AI) in the fintech industry is a big step forward to facilitate businesses. As a business owner, you might wonder what payment trends in 2024 you should look forward to. This article will walk you through all the necessary details before stepping into the next year.
To help you pre-plan your business’s financial management, we have covered the most important payment trends in 2024. Let’s dive into the details.
Artificial intelligence is on the rise. It has taken over many business industries to enhance the efficiency of operations and reduce labor costs. The finance industry is not behind in the race. With AI-powered finance solutions coming into the market, businesses are keen to adopt modern payment services for improved cash flow and transaction security.
Here are a few ways AI aims to facilitate the modern business world:
AI may analyze customer data in order to personalize the payment experience. Businesses could use AI-based payment systems to enhance the overall transaction experiences between customers and businesses.
AI-powered payment systems may be able to detect anomalies in transactions and personal data to prevent fraud. Such tools can transform the way businesses handle their finances.
The use of AI in payment processing can help businesses automate transactions to streamline operations. This can be an excellent option for companies operating in different time zones.
Instant payments have enabled banks and consumers to minimize the problems associated with delayed transactions. A widely used instant payment system, Real-Time Payments (RTP), has helped individual banks and payment networks streamline time-critical payments, like B2B transactions. Additionally, a recently launched instant payment channel, FedNow, is focused on consistent and interoperable realtime payments. As a single, unified system, FedNow aims to cater to a broader range of payment types, such as C2C and B2C transactions.
Here are a few ways how instant payment systems can be the future of payment technology:
RTP can facilitate faster checkout times in POS systems and lower the risk of payment fraud in retail businesses.
Instant payments can simplify and expedite the sending and receiving of money between individuals.
Instant payment services can potentially streamline cash flow and payment cycles for businesses across the globe.
Mobile payments are increasingly gaining in popularity in the global market. Businesses and individuals prefer mobile wallets over cash to make transactions. Many individuals are already focusing on mobile wallet adoption. This payment trend is more likely to expand in the coming year due to the rise of fast and efficient payment services.
Here is what we can expect from mobile payment solutions in the coming year:
Fintech companies are working on enhancing the security and efficiency of mobile wallets to make them available and accessible for every user.
Contactless payment methods, like NFC, are expected to be more widely adopted and accessible for everyone in the years ahead.
With many businesses developing their online shops and apps, the trend of in-app payments is rapidly growing.
The coming year may focus more on promoting alternative payment solutions rather than conventional methods, like cash and credit cards. Fintech experts are making significant efforts to develop highly efficient payment technologies for businesses and consumers. These systems may overcome the problems associated with traditional payment processing methods across the globe.
Here are the alternative payment solutions we can expect to see in power in the coming year:
Buy now, pay later, or BNPL services enable customers to spread out the purchase costs over specific periods of time. It is a great way to align affordability with consumer needs.
Open banking refers to third-party solutions providers accessing a customer’s financial data (with their consent) to offer them efficient payment services. Open banking is expected to emerge as a powerful tool in 2024.
The increasing demand and use of cryptocurrency are forcing many businesses to allow crypto payments — a trend that is only expanding.
The future of payment technology is highly dependent on foolproof financial security. As we progress to 2024, the global finance market is focusing on enhancing financial security in various domains. We can expect more strict payment protocols in the coming years based on the ongoing developments.
Here is what we can expect to see in 2024:
Multi-factor authentication (MFA) is more likely to be adopted by various businesses to ensure foolproof transaction security.
Fintech experts may generate tokens to replace sensitive financial information. These tokens will reduce the risk of data breaches and related issues.
Advanced data encryption methods may be launched in the coming year to ensure thorough protection of financial information.
The above information provides a thorough context of the expected payment trends in 2024. You can use the top five trends and their details to pre-plan your business’s financial management. REPAY can help you acquire the most innovative payment solutions for your business to stay ahead of the curve and meet the demands of the evolving payment landscape. Contact us today to explore your options.