As the financial technology landscape continues to evolve, 2024 is poised to usher in transformative trends according to Juniper Research that promise to reshape how individuals and businesses engage in financial transactions. Here’s a comprehensive overview of the key shifts anticipated in the fintech and payments arena:
A2A payments
In the realm of eCommerce and digital wallets, Account-to-Account (A2A) payments are set to challenge the dominance of traditional cards. Expect A2A payments to become a mainstream contender, offering a seamless and efficient alternative across various eCommerce use cases.
CBDC use cases
Central Bank Digital Currencies (CBDCs) will move beyond theoretical discussions to practical implementations. Specific CBDC use cases will emerge, propelling these digital currencies into the next phase of growth and adoption.
Generative AI to personalise spending insights
Generative AI is poised to revolutionize banking by providing advanced insights into spending patterns. Banks will leverage Generative AI to offer highly personalized experiences to their customers, enhancing the overall banking experience.
Digital identity integration
The integration of digital identity and digital wallets will gain momentum, catalyzed by market developments such as eIDAS2. This synergy between digital wallets and identity verification will enhance security and streamline user experiences.
AML tools evolve
As alternative payment methods gain popularity, Anti-money Laundering (AML) tools will undergo rapid evolution. The complexity introduced by diverse payment options will prompt AML tools to adapt, ensuring robust compliance measures are maintained.
Fintech embraces sustainability
Fintech companies will proactively address Environmental, Social, and Governance (ESG) requirements. Expect comprehensive solutions that align with sustainability goals, supported by initiatives from service providers to foster responsible and ethical fintech practices.
FedNow to spark innovation
While Federal Reserve’s instant payment system, FedNow, may not replicate the growth trajectory seen by systems like UPI and Pix, it will act as a catalyst for important innovations in the payment landscape, introducing valuable value-added services.
Mobile financial services evolve
Mobile financial services will undergo a significant transformation, moving beyond simple peer-to-peer transactions. The focus will shift towards offering more advanced banking services, reducing reliance on conventional transaction models.
Biometric in-store payments
Biometric authentication is set to surge in in-store payments, driven by innovative checkout solutions. Expect a revolution in how individuals complete transactions, with biometrics enhancing security and expediting the checkout process.
B2B BNPL fills financing gaps for SMEs
Buy Now Pay Later (BNPL) services designed for Business-to-Business (B2B) transactions will emerge as critical financing tools for Small and Medium Enterprises (SMEs). These solutions aim to address financing gaps, providing SMEs with accessible and flexible financing options.
2024 promises to be a pivotal year for fintech and payments, marked by innovation, sustainability, and a fundamental shift in how financial transactions are conducted globally.
