Did you know that the total transaction value of the digital payment sector is expected to reach over $9 trillion by the end of 2023 and $14.78 trillion by 2027?

These impressive figures clearly indicate the tremendous growth of the digital payment sector.

From conventional cheque and cash payments to digital wallets and cryptocurrencies, the payment sector has undergone a profound transformation and reshaped the way we manage our finances. Considering the evolution of the payment sector and new technology innovations in the industry, the coming year could be the most disruptive time for the sector.

So, what is next in payment trends? Which payment trends can help you stay on top of the latest technology advancements? Let’s explore what to expect in 2024.

Payment Trends to Expect in 2024 

Debit and credit cards, wire transfers, mobile wallets, and other related payment solutions have become the norm. With the boom of hyper-personalization, Artificial Intelligence, and other modern technologies, here are the top payment trends you can expect in 2024.

Contactless And Mobile Payments

Mobile and contactless payments are the future of payment solutions. We have already witnessed the transition from bulky payment processing machines to small-size scanners. With NFC (Near Field Communication), it is possible to payments by tapping smartphones at the payment terminals without the need to insert the card or provide the card details. This leads to simplicity and speed for customers as well as merchants. As more businesses are upgrading their point-of-sale systems, contactless and mobile payment will lead the payment space in 2024 and beyond.

AI and Machine Learning

With the advancement and digitization of payment methods, online fraud and security issues have increased over the years. We have already talked in detail about the top payment fraud trends to watch out for.

So, payment providers need to provide a personalized experience and a higher degree of payment security to their customers in the coming years. In response, Artificial Intelligence and Machine Learning have become very critical for fraud detection and security. These technologies can process large numbers of transactions and data in real-time to analyze the patterns, anomalies, and fraudulent activities instantly. With AI and machine learning techniques, the system learns and improves continuously, adapts to new fraud tactics, and sees red flags instantly. So, incorporating AI and machine learning technologies will help businesses protect their assets and maintain the trust of their customers. 

Biometric Payment Authentication

Biometric technology is another emerging trend and is mostly used by banks and security agencies. Over time, biometric authentications such as fingerprint and face recognition have become mainstream with Mastercard and Visa offering biometric cards. This technology uses physical characteristics and related authentication to identify an individual for payment purposes. It ensures faster payment processes and better security while reducing fraud and making payments convenient and secure for customers.

Read: How banks are embracing biometrics technology to improve security

Peer-To-Peer (P2P) Payments

Businesses no longer need to wait for hours to receive payments. Instant P2P payment is becoming the norm. This transformative technology allows sending money from one bank account to another – quickly and easily. Peer-to-peer payment transactions deliver on the promise of ease and speed. However, the most common problem with P2P apps is the potential for scams, phishing attacks, and other frauds. In 2024, we can expect to see added security layers such as biometric authentication to resolve these security concerns.

 

Personalized Payment Experiences

In today’s world of hyper-personalization, the payment processing industry is no exception. With the emergence of Artificial Intelligence and Machine Learning, payment providers will also leverage these technologies to provide personalized payment options and offers to improve the payment journey of customers. In 2024, most businesses will use advanced technologies and integrations to create a personalized payment experience for every customer.

Growing Popularity of Buy Now, Pay Later (BNPL)

As the name suggests, Buy Now, Pay Later is a type of loan that allows users to purchase now and pay the remaining amount later. This payment option also allows customers to pay the amount in equal instalments with minimal or no financing fees. With the rising living costs, this payment system can change the payment landscape in 2024.

Read: How Buy Now, Pay Later (BNPL)” payment mode is garnering more interest and threatening banks and credit card issuers

 

The Rise of Cross-Border Payments

Cross-border instant payments are likely to increase in the coming years. Businesses have expanded their presence in multiple countries and consumers also prefer to shop online from sites from different countries. Therefore, there is an increase in demand for secure and efficient cross-border payment solutions. Now, payment providers need solutions that can handle transactions across multiple currencies and jurisdictions. This payment trend will accelerate in 2024 in light of regulatory changes and technological advancements.

 

Cryptocurrency Payments

You may know them as Bitcoin, Ethereum, and Ripple. Cryptocurrency is expected to become more acceptable as a legal payment solution by offering the benefits like privacy, security, and accessibility. In the coming years, payment providers are more likely to offer solutions that allow businesses to accept cryptocurrencies while catering to tech-savvy customers.

Leverage These Payment Trends for Your Business with Us

With the emerging technologies and new payment solutions, businesses should stay updated and invest in cutting-edge technologies to provide high-end convenience to their customers. Embracing these trends can help businesses lead the way in shaping the future of payment solutions.

At Verinite, we understand the need for trending payment solutions and technologies. We have worked with reliable financial institutions like Yes Bank, and IDFC, to implement payment solutions like wallet payments and QR code payments. If you are also looking to transform the payment experience for your customers, contact us today.