The Future of Real-Time Payments in 2024: Insights and Predictions

As 2024 unfolds, experts from the financial industry are sharing their predictions for the future of real-time payments in FinTech Magazine. With insights from leaders like Andy Davies, Global Head of Payments at Endava, Manuel Sandhofer, SVP & General Manager, Europe at Nium, Luis Silva, Founder and CEO at CloudWalk, and Nick Botha, Global Payments Manager at AutoRek, we gain valuable insights into the evolving landscape of cross-border transactions.

Andy Davies highlights the positive shift expected in real-time payments during 2024. He emphasizes the importance of overcoming transparency and control issues within the payment system, driven by the shift to ISO20022 data standards. This shift will significantly aid Know Your Customer (KYC) and Anti-money Laundering (AML) compliance, enhancing security and trust in cross-border transactions. While the B2B sector is poised to benefit the most from modern cross-border payments, security and authentication challenges will require attention.

Manuel Sandhofer echoes the sentiment of a digital transformation revolution in the financial services sector. He emphasizes the crucial role of frictionless cross-border payments in globalizing economies and businesses. In 2024, new regulations like an updated PSD2/3 framework and the development of the New Payments Architecture in the UK will pose challenges and foster innovation, intensifying competition between traditional banks and digital disruptors. Manuel also anticipates the emergence of new use cases for real-time global payments across various industries.

Luis Silva draws attention to the lag in the adoption of instant payments in the United States compared to other countries, but this is expected to change with the launch of FedNow by the Federal Reserve. He predicts that most U.S. fintech companies will integrate instant payments into their offerings in response to the high-interest-rate environment. Additionally, the rise of Tap to Pay technology, notably Apple’s involvement, will revolutionize the way merchants receive payments.

Nick Botha emphasizes that 2024 will see a natural progression in real-time payments. Consumers increasingly expect instant payments, with innovations like QR codes and Request to Pay driving changes in payment methods. Governments are recognizing the link between real-time payments and economic growth, leading to a central push for widespread adoption. Central Bank Digital Currencies (CBDCs) and emerging payments infrastructure will solidify real-time payments as a fundamental aspect of banking and payment services. However, this central push will also pose challenges for firms to adapt to higher transaction volumes and evolving spending habits.

2024 promises significant developments in the realm of real-time payments, with a focus on security, innovation, and global adoption. The financial industry is poised for a transformative year, with both opportunities and challenges on the horizon. As we navigate this dynamic landscape, keeping pace with the evolving needs of customers will be paramount.

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