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With the year coming to a close we take a look at 12 trends of the payments sector for Christmas and beyond!
Day 1
Growth of embedded finance: “Expected to reach highs of $230 billion in 2025 embedded finance will see a 10x growth since 2020” - Forbes.
Day 2
In time… real-time: A focus for the last few years, payments sectors will move further toward real-time authentication, data-gathering and analysis, and faster payments.
Day 3
The rise of untapped markets and emerging economies: Emerging and developing economies will become increasingly involved in e-commerce, leaning on payment gateways to reach internationally-based customers.
Day 4
A prioritisation toward merchant flexibility: Merchants in developing and developed markets will require more flexibility from payment gateways to facilitate a rise in alternative finance payment methods such as open banking and BNPL.
Day 5
Banking for the unbanked: Further targeting of the unbanked with new products to minimise the number of people without access to a bank accounts or a wallet/payment method that they can use to digitalise their life.
Day 6
Diversified fraud prevention protocols: The payments sector will need to diversify fraud prevention systems to incorporate alternative finance.
Day 7
Crypto payments facilitation: In accordance with consumer and merchant demands, crypto payments will become further incorporated into e-commerce, with payment gateway providers facilitating this dynamic.
Day 8
Alt-fi and Trad-fi technology conversion: Traditional financial services and institutions will continue to adopt digital asset technology, such as blockchain, for settlements, reconciliations, and clearances.
Day 9
Merchants demand data & transparency: In an effort to better understand their ever-changing businesses, merchants will require a transparent and control-giving platform to analyse their e-commerce financial flows.
Day 10
Policy standardisation sector-wide: Frameworks and policy-makers will increasingly standardise the protocols, systems, and practices of financial services, ranging from trad-fi legacies to alt-fi contenders and payment gateways.
Day 11
Tackling risk protection: As more data is collected and data-driven algorithms are updated the payments sector will move toward lower risk rates. While risk will remain a hot topic in 2023, advancements will occur that make e-commerce safer for business and consumer.
Day 12
A (more) equal payments sector: Lastly, female thought leaders within the payment industry are finally finding a space to share their gender-based experiences in our sector. A wholly positive development, we’re looking forward to seeing payments gradually reduce the gender gap and appeal more to young females with an interest in financial services.
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Patrick Bermingham CEO at Adflex
29 August
Ben Lane VP of Colleague Experience Group at American Express UK
28 August
Alex Kreger Founder & CEO at UXDA
27 August
Luigi Wewege President at Caye International Bank
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