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Article 12 Dec 2023

5 Key Payment Trends You Should About Know in 2024

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Money makes the world go round. So, when money flows change and evolve, its impact has far-reaching consequences for business operations, consumer behaviours, and even the wider global economy. 

With that in mind, and with 2024 just on the horizon, we’re looking at the top payment trends you need to know about ahead of the new year. From the rising adoption of real-time payment solutions to the growing number of value-added services and payment integrations, we cover the major payment trends of 2024 in this article, including: 

  1. The rise of real-time, every-time payments 
  2. ‘Value added’ services set to flourish
  3. Embedded finance means integrating third-party PayTech
  4. Pay by Bank is expanding opportunities in the US
  5. Converge or integrate payment services to thrive 

What are the top payment trends for 2024?

As 2023 draws to a close, the account-to-account (A2A) payments industry reflects on a year underscored by significant growth thanks to evolving consumer preferences and technological advances.

Looking ahead to 2024, we predict that we will see a continuation of providers experimenting with new value propositions, whether this involves joining forces with other brands or discovering new ways to deliver value to customers. In practice, some winning growth strategies may include: 

1. Delivering real-time, every-time payments

Real-time money flows via open banking-enabled instant account-to-account (A2A) payments are on the rise across the globe. This is evident, especially across Europe, where approximately half of all global open banking users reside. 

Going forward, the key differentiator between different payment methods will be speed, with merchants and customers alike benefitting from more accessible, more secure, and instant open banking-based payments. This payment processing trend is a significant area of opportunity within marketplaces and exchanges, where two-way money flows are more common and instant payout offers are low.

In examining specific European regions, it is clear that the Netherlands and Germany, with their already high levels of regular A2A usage, are poised for significant growth in instant A2A adoption by 2024. This contrasts payment processing trends in traditionally more ‘mature’ markets, like the UK, where card usage lingers.

2. Providing value-added services as key differentiators

It will be some time before the PSD3 regulations are implemented – but it remains a top payment trend to keep on top of in 2024. Its practical implementation timeline is currently facing significant delays due to the directive’s complexity. So, we estimate that the legislation won’t become enforceable until around 2026.

With that being said, banks and other payment service providers (PSPs) should begin preparing for the forthcoming changes already outlined in the proposal. Specifically, they should look for new ways to improve the customer experience and offer other embedded finance solutions across transactions with value-adding services. 

Doing so will be a crucial way for PSPs to differentiate themselves and maintain profitability, especially as the EU moves to pass the Payment Services Regulation, which will come into effect much faster than the third directive. To see why this is the case, check out our dedicated PSD3 explainer, where we go into more depth!

3. Exploring embedded finance means integrating third-party PayTech

The European embedded finance industry is poised for substantial growth, with market revenue expected to reach $94,801.7 by 2033. Embedded finance (i.e. the integration of financial services offerings into non-financial businesses) is being fueled by PayTech, which provides the technologies to enable these integrations. However, the specific payment solutions offered to customers will significantly influence the industry’s overall growth trajectory. 

In practical terms, this means that if customers can’t make fast and easy instant payments (i.e., open banking-enabled payments), retailers will see a slower or non-existent adoption of their embedded finance products within their consumer base. 

To streamline embedded finance product creation and avoid the complexities and cost of in-house development, merchants should consider collaborating with reliable third-party PayTech providers like Brite Payments. Brite’s focus on user-centric experiences, robust European banking partnerships and deep understanding of the EEA’s regulatory landscape positions it as a standout choice for embedded finance solutions. 

Brite’s market expertise and customer-centred approach ensure that brands can successfully leverage optimised, market-ready open banking platforms to accelerate their growth. 

4. Opportunity knocks as the US expands ‘Pay by Bank’ payment methods

As identified in our other article on 6 Essential Open Banking Trends for 2024, open banking adoption is rising in other areas outside of Europe.

Notably, the US has new rules planned for the coming year that are designed to bypass the growing pains of open banking strategies observed in other regions. As a result, the move could help tackle the US’s perception as a ‘laggard’ market, spurring faster adoption and more opportunities for innovation. 

For example, providers and centrally driven schemes like FedNow are set to expand ‘Pay by Bank’ options from 2024, utilising open banking-based technologies and A2A payments to deliver real-time money flows and lower processing costs to merchants.

5. Converge or integrate to thrive

Unlike other large markets, such as the US or China, payment method preferences vary greatly across European countries. And a change is bound to happen – hence why it is another one of our key payment trends.  

For example, credit/debit cards, digital wallets, A2A payments, and BNPL hold the top spot in at least one country. This level of market competition is difficult to maintain long-term, so either one of two possibilities will ultimately succeed.  

Namely, payment methods are either converging, with regional brands being outcompeted by larger players, or digital wallet providers adding new integrations to offer users more choices. It may be too early to say which version of events will prevail. 

However, with consumers increasingly looking for convenience and speed in their payment services, it’s likely that innovative solution providers are the ones to watch. 

For example, here at Brite, we’ve already added a new feature to automated customer onboarding and verification, making customer payments more secure and easier to manage. 

Stay up to date on payment trends with Brite

Brite is a leading second-generation fintech based in Stockholm, Sweden. Our proprietary Instant Payment Network enables seamless money flows, even when open banking infrastructure lags. Plus, whatever the payment trends, we aim to cover it.

With instant access to more than 3,800 banks in 26 European markets, we can help drive new growth in your business. So, if you want to learn more about Brite Payments and stay up-to-date on all things payments, get in touch today.

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