Payment trends in 2024 to propel businesses towards unprecedented profitability, study shows

By Puja Sharma

BlueSnap, a global payment orchestration platform of choice for leading B2B and B2C businesses, has published their annual report highlighting the top payment trends predicted to help businesses expand into new markets, drive a better user experience and convert sales, in 2024.

In 2024, a significant shift is expected in the realm of payment methods, with payment orchestration emerging as the leading trend. This approach enables businesses to consolidate all their payment requirements into a unified platform, covering everything from orchestration to processing. The emphasis is on optimizing payments without sacrificing efficiency.

Addressing the rising threat of cybercrime takes center stage, especially with bad actors leveraging sophisticated tools such as ChatGPT to create convincing content for spam websites and fraudulent advertisements. Small and medium-sized enterprises (SMEs), often lacking robust defense systems due to limited capital, urgently require cybersecurity support.

The financial landscape is undergoing a transformative phase marked by collaboration between traditional banks and FinTech firms. This partnership not only strengthens customer loyalty but also introduces opportunities for generating new revenue streams. By embracing the expertise and capabilities of FinTech partners, banks can navigate the evolving financial landscape more effectively in this era of cooperation.

Looking forward to 2024, the payment landscape is poised for significant transformations. One notable trend is the increasing integration of financial services into non-financial platforms, known as embedded finance. This approach seeks to embed payment functionalities directly into diverse applications, streamlining user experience and accessibility beyond traditional banking structures.

Governments and central banks are actively exploring the adoption of Central Bank Digital Currencies (CBDCs). These digital forms of national currencies aim to offer government-backed alternatives to physical cash, potentially reshaping how payments are made, settled, and regulated.

Advancements in authentication methods are another focal point, with a growing reliance on sophisticated biometrics such as fingerprint recognition, facial recognition, and voice authentication. This enhances the security of transactions and contributes to the convenience and speed of financial interactions.

Decentralized Finance (DeFi) solutions are gaining prominence, leveraging blockchain technology to offer decentralized and often automated financial services. These services include lending, borrowing, and trading, challenging the traditional financial landscape with more accessible and transparent alternatives.

The momentum of contactless payments, which gained significant traction in previous years, is expected to persist. The speed, convenience, and hygiene aspects of contactless transactions continue to resonate with consumers, prompting further acceptance and optimization of these payment methods.

Subscription-based payment models are rising beyond streaming services to encompass various products and services. As businesses increasingly adopt subscription-based revenue models, payment platforms adapt to accommodate these recurring transactions seamlessly.

Environmental consciousness influences payment choices, with consumers growing interest in sustainable and eco-friendly options. Payment providers and businesses are responding by incorporating green initiatives into their payment processes, including carbon offset programs and eco-friendly payment cards.

These collective trends reflect the ongoing digital transformation and the pursuit of more secure, efficient, and inclusive payment solutions in the evolving landscape 2024.

Key Highlights:

• Payment Orchestration: one platform to rule them all – Expect payment orchestration to be the biggest payment trend in 2024. Set to take on a new optimised modern focus, businesses will be able to consolidate all payment needs into one vendor. That includes payment orchestration and payment processing without sacrificing payment optimisation
• Fraud prevention and AI: Bad actors targeting easier prey – Bad actors are deploying tools like ChatGPT to develop convincing copy for spam websites and fraudulent ads that dupe customers. With SMEs typically having weaker defence systems in place due to lack of capital – assistance with cybersecurity is key
• Banks and FinTechs: The age of partnership – Banks have an opportunity to strengthen customer loyalty and generate new revenue streams by opening the door to more third-party partnerships and leveraging FinTech partners expertise and capabilities.