It is now easier than ever to make payments. From desperately looking through the bottom of our bags for loose coins to finding an ATM to just tapping our card at a point of sale, we’ve come a long way. Payments are likely to keep evolving with more security and flexibility. For businesses, staying updated on new payment trends helps avoid mistakes, keeps customers satisfied, and ensures they know about the latest security features. In terms of payment trends, what’s next? Let’s look at what 2024 holds in store for businesses.
Payment trends – what to expect in 2024
In 2024, mobile payments will keep getting more popular. We can confidently say that mobile payments are a top way to pay these days. The mobile payment market in the US was valued at $53.5 billion in 2022 and is projected to grow to approximately $607.9 billion by 2030.
Both large and small businesses can benefit from this kind of payment since it enables them to meet the needs of clients wherever they may be. Once a business has a point-of-sale system, handling payments is pretty easy. People can pay with a tablet, smartphone, or watch.
The great thing about mobile payments is how quick and easy they are. You don’t need to insert a card, type in details, or wait for change. Both customers and businesses like how simple and fast it is.
There are five main types of mobile payments:
- mobile payments at a store
- SMS payments
- mobile wallet
- mobile e-commerce
- peer-to-peer payments
The use of mobile wallets is only going to grow. Indeed, it is anticipated that transactions will increase from approximately $802 billion in 2023 to $929.8 billion in 2024. A mobile wallet, also known as a digital wallet or e-wallet, online service, software program, or electronic device, lets you make transactions with someone else. Examples include Apple Pay and Google Pay.
Mobile wallets are quick, safe, and handy. A significant advantage is that mobile wallets speed up money transfers, all conveniently done within the app.
Buy now, pay later
In the coming year, Buy now, pay later (BNPL) is expected to be a common choice worldwide, reflecting the ongoing shift in payment trends.
This way of paying for things lets you split the cost into smaller payments. People like it because it’s flexible, and you don’t have to pay all at once.
Back in 2021, the global transactions using BNPL were worth $87.01 billion, and experts say it could grow to $194.04 billion by 2025. In recent years, an increasing number of people have opted for BNPL over traditional credit due to its budget-friendly nature. You can use it to pay for parts, and there are no extra charges.
As BNPL keeps teaming up with different stores and websites, it’s going to change how we handle money.
For instance, more and more people in North America are liking the idea of BNPL. It’s really handy for big purchases, and it’s easier to say yes to buying things when they know they can pay for them bit by bit instead of all at once.
P2P payments have made money transfers easier, quicker, and more accessible than ever before, whether you’re splitting bills at a restaurant or sending money to a friend on the other side of the world. Consider this scenario: you’re out for dinner with a friend, and they cover the bill. All you have to do is open your preferred peer-to-peer app, enter their phone number or email address, and send over the owed amount.
Now, let’s talk about where it all began. PayPal is the pioneer of peer-to-peer payments. As smartphones became everyone’s sidekick in the 2010s, the demand for P2P solutions skyrocketed. The big players like PayPal adapted to mobile apps, and soon, cool newcomers like Venmo and Cash App joined the scene. It’s like P2P payments went from a cool idea to an everyday superhero, all while making sure your transactions are safe and sound.
Ensuring security is a top priority for P2P payment platforms, achieved through encrypting transactions and incorporating authentication measures. This commitment to safety has built trust among users, assuring them that their financial transactions are secure and trustworthy.
You can use money from your P2P account or linked bank account. Keep in mind that sometimes there’s a small fee (2-3%) if you use a credit or debit card.
In 2024, the evolution of cryptocurrency payments is expected to continue, marking another step toward mainstream acceptance. As technological advancements and regulatory frameworks progress, more businesses are likely to integrate cryptocurrency payments into their systems. This shift is driven by the growing recognition of the benefits, such as faster transactions, reduced fees, and enhanced security, associated with cryptocurrency transactions.
Moreover, the rise of central bank digital currencies and increased collaboration between traditional financial institutions and the crypto space may contribute to a more seamless integration of cryptocurrencies into everyday transactions. With greater user education and improved infrastructure, 2024 could witness increased adoption of cryptocurrencies as a viable and widely accepted method of payment.
While it might sound like a futuristic scenario or a scene from a sci-fi movie, the reality in 2024 is that the evolution of biometric payments is actively shaping the digital transaction landscape.
What was once primarily employed by security agencies and law enforcement has now become a mainstream method, with major players like Visa and Mastercard offering biometric cards.
The advancement of biometric payments involves using unique physical features, such as iris, retina, face recognition, and DNA matching, to authenticate and identify individuals for secure transactions. This method not only boosts security, especially when combined with a two-step authentication process, but also puts users’ convenience front and center.
Globally, the biometrics market is projected to reach $59.31 billion by 2027, highlighting the increasing acceptance and adoption of biometric payment methods in various sectors and regions.
Globally, open banking is probably going to keep expanding, which will encourage greater collaboration between traditional banks and third-party providers. Through this partnership, financial services will be better, consumer satisfaction will increase, and industry innovation will be encouraged.
Open banking initiatives are anticipated to gain traction as more countries implement or refine regulatory frameworks to enable safe data exchange and interoperability among financial institutions. This might cause a significant rise in the number of financial institutions adopting open banking procedures.
Making modern payments a breeze!
As we wrap up, keep in mind: 2024 brings new payment trends. Stay flexible, embrace the changes, and enjoy the ease of future transactions.
Collaborating with a leading software development company is essential for financial institutions aiming to stay competitive in today’s dynamic financial landscape. These partnerships bring the technical expertise needed to seamlessly incorporate new payment options.
An excellent software development partner makes sure that everything is compliant with regulations, protects client data, and guides you through the challenges of modern technology.
Working with Webchain
Working with WebChain comes with 3 big advantages:
- Firstly, our priority is to support your business growth through effective solutions. Your needs and goals are our main focus, and we customize our solutions to fit what you’re looking for.
- Secondly, our team is really good at using the latest tech to give you cutting-edge solutions. We stay on top of what’s new so your projects get the best and most up-to-date features.
- Last but not least, we’re all about keeping things clear and open. You’ll always know what’s happening because we believe in talking straight and working together.
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