Each year, our Advanced Payments and Fintech Report provides insights into the latest trends shaping the payments landscape. Now in its 17th edition, the report examines 14 key areas transforming the industry, driven by technological innovations, regulatory changes, and evolving consumer preferences. The report also includes findings from our annual industry survey conducted between May and July 2024, gathering insights from 100 senior payments professionals worldwide on the most pressing challenges and opportunities.

Topics included in the report

Advanced Payments Survey Results

Emerging Technologies

1. AI’s Role in Revolutionizing Payments
2. Blockchain’s Expanding Influence
3. Internet of Things (IoT) and Payments
4. The Rise of Alternative Payment Methods (APMs)
5. Central Bank Digital Currencies (CBDCs)‍

Financial Services Inclusion and Innovations‍

1. Accelerating Growth of B2B Cross-Border Payments
2. Open Banking
3. Consumer Digital Banks
4. Digital Disruption in P2P Remittances
5. Expanding Financial Inclusion through Payment Solutions
6. Insurtech

Consumer Trends‍

1. Innovations in eCommerce & In-Store Payments
2. Adapting to the Marketplace and Gig Economy
3. Future of Cash

Key Takeaways:‍

1. Growth Verticals: Retail and e-commerce are expected to experience the most rapid growth in digital payments, with other sectors, such as international remittances and travel & hospitality, also poised for significant digital transformation.
2. Emerging Payment Methods: The payment landscape is rapidly shifting toward more seamless and faster solutions. Significant growth is anticipated in instant payments and in-app payments, with alternative payment methods gaining traction. Mobile wallets, in particular, are projected to become the predominant payment method by 2028, driven by high adoption rates in the Asia-Pacific region.
3. AI in Payments: AI is set to play a pivotal role in revolutionizing payments, particularly in fraud detection and personalized customer experiences, allowing businesses to gain deeper insights into consumer behavior.
4. Open Banking Evolution: Open Banking is evolving into broader initiatives like Open Finance and Open Data, creating opportunities to enhance competition and improve customer experiences.
5. B2B Cross-Border Payments Growth: The B2B cross-border payments market is expected to expand significantly as fintechs address traditional payment inefficiencies, emphasizing the demand for faster and more cost-effective solutions.
6. Central Bank Digital Currencies (CBDCs): CBDCs are at varying stages of research and development globally, with differing opinions on their potential impact. While retail CBDCs face adoption challenges, wholesale CBDCs are viewed as a promising avenue for enhancing cross-border payments and financial stability.
7. Blockchain’s Expanding Influence: Blockchain technology is gaining traction across various sectors, offering enhanced security, efficiency, and inclusivity. As adoption increases, blockchain is poised to transform industries beyond finance, providing innovative solutions that challenge traditional systems.
8. Internet of Things (IoT) and Payments: IoT is on the verge of transforming the payments ecosystem by enabling devices to autonomously initiate transactions. This shift presents opportunities for businesses to enhance user experiences and streamline operations through connected devices, further integrating payments into consumers' daily lives.
9. Adapting to the Marketplace and Gig Economy: The gig economy and online marketplaces are evolving to meet the demand for faster, more efficient payment solutions. Embedded finance offers opportunities to improve user experiences, enhance trust, and drive growth in this dynamic sector.
10. Expanding Financial Inclusion through Payment Solutions: Innovative payment solutions are promoting financial inclusion, particularly in emerging markets where traditional banking services are limited. By addressing barriers such as insufficient funds and lack of infrastructure, these solutions help bridge the gap for the financially excluded, fostering economic growth and digitalization.

The payments industry is poised for continued growth and innovation, presenting numerous opportunities for stakeholders to drive value. Companies can capitalize on emerging technologies like AI and blockchain to optimize operations and enhance user experiences. There is also significant potential to expand financial inclusion through innovative payment solutions in underserved markets, leveraging new models like embedded finance and open banking to create seamless, integrated financial ecosystems. By focusing on collaboration, adaptability, and a forward-looking strategy, industry players can navigate challenges and position themselves as leaders in shaping the future of payments.