Navigating the Payments Landscape in 2024 - Themes of Interest
Trends and Predictions for 2024 from the Emerging Payments Association Asia
As a member of the Emerging Payments Association Asia (EPAA) a few of the A24 team keenly took part in the EPPA’s recent webinar showcasing the thoughts from the advisory board members.
Here’s what we learnt...
As we step into the year 2024, reflecting on the challenges and innovations of the past year provides a lens through which we can anticipate the evolving trends in the payments industry. The landscape has been marked by high inflation rates, increased interest rates, and a surge in cyber threats. Looking ahead, collaboration is set to be a key theme, not only within the value chain and sectors but also between the public and private sectors.
Cross-Border Payments and the Rise of QR Codes:
The momentum of cross-border and instant payments is expected to continue well into the second half of 2024, presenting new opportunities and projects.
QR code payments are anticipated to witness a significant surge, transforming the way transactions are conducted globally.
Security and Compliance Challenges:
The prevalent themes of 2023, including threats and digital crimes, are likely to persist. However, the industry is gearing up for more innovations aimed at preventing and protecting against fraud.
A key focus will be on ensuring responsible use of data, with the adoption of digital identity as an integral part of the digital flow and user experience.
Tokenization, a trend observed over the last two years, is expected to continue, driven by provider consolidations and a push towards harmonization.
Global Initiatives and Emerging Technologies:
Collaborative efforts, such as those within the G20, will seek ways to reduce costs for cross-border payments, addressing a critical concern in the industry.
Emerging technologies with a profound impact on the industry, rather than just commercialization for products, will take center stage. The leverage of AI to prevent fraud and the pursuit of quantum-safe technologies for future payments are among the anticipated developments.
Regional Dynamics and Shifts in Payment Power:
Governments and central banks are driving a realignment of payment power, with a shift away from dominant payment networks.
Real-time payment networks, especially those leveraging QR codes for account-to-account transactions, have gained prominence in several Asian countries.
Regional players, including Malaysia, Indonesia, and Hong Kong, are exerting more control over their money, seeking lower-cost options and independence from US-based companies.
Advancements in Consumer Experience:
AI is expected to play a more significant role beyond fraud prevention, influencing transaction models and enhancing servicing and loyalty in the merchant space.
The year 2024 is predicted to witness tangible activity in omnichannel payments, with major retailers increasingly adopting tap-on-phone solutions and moving away from traditional devices.
Biometrics at the point of sale will likely become more prevalent, shaping the customer journey and adding an extra layer of security.
As the payments landscape continues to evolve, staying abreast of these trends and developments will be crucial for businesses and individuals alike. The intersection of technological advancements, regulatory changes, and shifting consumer preferences will shape the trajectory of the payments industry in the coming year.
Contributors to the EPAA Webinar:
May Lam CIO, Australian Payments Plus
Antony Morris, Ambassador EPAA
Carrie Suen, Senior Advisor, Ant Group
Mike Von Haartman, Vice President Digital Payment Products, Krungthai Card PCL
Nigel Lee, Chief Customer Officer, Ingenico
Mary Ann Francis, March Ann Francis, Global Payments & Strategic Initiatives Advisory
Moderator – Camilla Bullock, EPAA
