Paytech in 2024: Key Insights from Industry Experts

As 2023 draws to a close, The Fintech Times reflects on the past year’s developments and looks ahead to 2024 with insights from fintech CEOs and industry leaders. These experts share their thoughts on the key takeaways from 2023 and offer predictions for the trends that will dominate the payment technology (Paytech) landscape in 2024.

Antoine Cuypers, the Director of Strategic Alliances and Key Accounts at Intix, a transaction data management platform, observes that the demand for quick, digitized payment methods has been steadily growing, driven by the need for safe and touchless payment options during the Covid-19 pandemic. He predicts that 2024 will see a surge in truly instant payment solutions, particularly in Europe and North America. According to Cuypers, the European Central Bank’s research indicates that Single Euro Payments Area (SEPA) instant credit transfers currently account for only 14% of all conventional SEPA credit transfers. He anticipates significant growth in this area as more companies enter the market, fueled by legislation proposed by the European Commission to ensure widespread adoption of instant payments in the European Economic Area.

Lena Hackelöer, CEO and founder of Brite Payments, echoes Cuypers’ sentiments, emphasizing the role of government-led initiatives in accelerating the adoption of instant payments, especially in markets like Brazil and India. She predicts that 2024 will be the year when instant payments become mainstream in Europe, driven by the European Commission’s draft proposal to mandate their use for all Eurozone transactions and the emergence of next-generation open banking payment solutions.

James Booth, VP Partner Management EMEA at PPRO, highlights the continued growth of alternative payment methods in 2024. These methods could include bank transfers, e-wallets, or Buy Now, Pay Later (BNPL) options. Booth notes that British consumers are already favoring alternative payment methods in over 50% of online transactions, as they seek a more convenient and holistic shopping experience. E-wallets, in particular, are gaining popularity, offering extensive data features and enhancing the overall consumer experience. Booth predicts that, similar to super apps in Asia, European players will start embedding complementary services into their platforms to cater to customer needs.

Alex Berrai, Deputy CEO at emerchantpay, emphasizes the trend toward simplifying payment processes to make them more mobile-friendly. He points out that consumers and merchants have shifted towards mobile-friendly shopping experiences, with Google and Apple Pay leading the way. Berrai expects that services like Mastercard’s and Visa’s Click 2 Pay will further simplify mobile payments. Additionally, AI-driven risk management will continue improving data security and reducing the risk of fraudulent attacks on merchants.

Graham Smith, Managing Director at Volopa, highlights the shift towards seamless, secure, and contactless transactions in 2023. He emphasizes the importance of user experience and predicts a surge in decentralized finance (DeFi) applications, biometric authentication, AI-driven fraud detection, and cross-border payments.. Sustainability will also play a significant role in shaping the payments landscape, with a growing demand for eco-friendly practices and carbon-neutral transactions.

Richard Ransom, Strategic Customer Success Manager at Bottomline, highlights the success of Confirmation of Payee (CoP) in 2023, revolutionizing bank account verification. He anticipates the continued acceleration of digital transformation and the automation of analogue payment processes in 2024. Companies are expected to move towards cloud-based payment and cash management solutions with managed bank connectivity, focusing on resilience and efficiency. Ransom also expects more clarity on the New Payments Architecture initiative and its impact on the payments system.

Gabriel Le Roux, CEO and co-founder of Primer, envisions a shift away from fragmented payment models towards a unified and streamlined payment experience in 2024. To keep up with market evolution, Le Roux emphasizes the increasing importance of data analysis and AI for merchants. AI will enable merchants to identify payment trends effectively and reduce complexity, allowing them to concentrate on other crucial tasks.

Brian Greehan, Head of B2B Solutions at Global Payments, notes that businesses prioritized cost reduction and operational efficiency in 2023. He anticipates that finance leaders will accelerate efforts to automate back-office processes like Accounts Payable (AP) in 2024. This automation will streamline payment processes, provide better control over transaction timing, and address the challenges posed by remote and hybrid work arrangements.

2024 promises to be a transformative year for the Paytech industry, with instant payments, alternative payment methods, simplification, user-centric practices, automation, data analysis, and AI driving the sector’s evolution. Financial institutions and businesses will need to adapt and innovate to stay competitive in this dynamic landscape.