4 FinTech trends to keep an eye on in 2023
In comparison to 2021, last year saw a slowdown in growth across many fintech sectors, including banking, insurtech, and regtech. Despite this,
Deloitte pegs the value of the fintech sector at $180 billion, and projects that figure to soar to a mind-boggling $213 billion by 2024.
It’s often during times of recession and economic strain that we see some of the best creativity. From Walt Disney to General Motors, Airbnb to Uber, many of today’s biggest businesses trace their origin to a time of economic turmoil. So, what innovations
can we expect over the next twelve months? Well, I anticipate some notable developments particularly in the payments sector as the new year begins.
Transforming Cross-border payments
Businesses continue to prioritise optimising internal processes and cutting expenses even as they communicate with customers and other businesses on a global scale. As part of a payment experience that satisfies the needs of global businesses and
customers, new business models and innovative payment rails can enable less expensive and more effective cross-border payments, fulfilling the industry’s need for efficient fund delivery.
Cross-border payments are key for international customers as
49% of customers in Poland admitted they would look elsewhere or abandon a purchase if they couldn’t pay using a payment method of their choosing. Our research highlighted that shoppers in many PayU regions were shopping online from international retailers.
Particularly in Poland, the percentage was roughly twice as high as in the US or Colombia for the number of consumers buying products or services from abroad. While the European Single Market may have contributed to some of this disparity, customers in Poland’s
rapidly expanding e-commerce market are showing a strong interest in cross-border e-commerce.
The track ahead: payment rails innovation
The continuation of the payment rails transition will be a major topic of discussion. While many agree that using cryptocurrency and blockchain as payment rails has several advantages, only a small number of nations, financial institutions, and regulators
have adopted them. In order to promote trust in the crypto industry and address the need for uniform regulatory compliance oversight across crypto marketplaces around the world, regulation will also play a bigger role going forward.
We’re already seeing examples of popular payment rails such as the Single Euro Payments Area (SEPA). SEPA allows customers to make cashless euro payments using direct debit or credit transfers, efficiently and securely, anywhere in the European Union
and several non-EU countries. The aim of SEPA is to make cross-border payments seamless and cost-effective.
To make money flow more available, affordable, and effective for everyone, the fintech sector must continue to take the initiative. In light of this, the next global payment rails will enable businesses to create cutting-edge payment services and products
that follow customers everywhere they go.
Keeping the consumer and payments safe
Payment methods, both traditional and brand-new are moving toward digitisation, requiring added security and online fraud prevention.
research shows that e-commerce alone lost approximately $41 billion globally in 2022 and is expected to grow to $48 billion in 2023.
Unsurprisingly, as payments continue to become more digitalised and in turn more secure, businesses must be able to identify challenges and opportunities to make sure they are meeting customer needs.
To ensure customers have an enjoyable and secure online shopping experience, it is essential to have a solid anti-fraud solution that complies with local laws and regulations and to use the most recent security protocols (network tokenization, 3DS, secure
Making payments visible
The fintech industry continues to drive transparency in its product offerings and services – particularly in credit deals. Lending has grown in importance with the economy where it is now, but at what cost? To safeguard customers from bottomless debt
pits, innovative lending schemes must be made possible, but they also need to be responsible and transparent.
While 2023 is set to be another uncertain year with ongoing inflationary pressures and the cost-of-living continuing to rise, I’m confident in the fintech industry’s ability to meet these challenges head-on. This year and in the years ahead, promoting innovation
will be crucial in order to give consumers greater options and ensure businesses consistently enhance the experience and expectations of their online purchasing journey.
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