Explore the top 5 payment industry trends in 2024 with Valor PayTech. Unlock the future of payment technology with mobile payments, AI, blockchain & more.
We stand on the brink of another new year, eagerly awaiting 2024. The payment industry is gearing up for a captivating journey through a landscape of innovation and the latest trends.
From the humble beginnings of electronic funds transfers in 1871 to the groundbreaking introduction of the modern credit card by Bank of America in 1958 (Ayoconnect, 2022), the payment industry has aged like a fine wine. The advent of the U.S. Advanced Research Projects Agency Network in the 1960s laid the groundwork for the Internet as we know it today, unlocking a world of possibilities for the future of payments. Amidst the teacup clinks and the chatter of conversations, the subtle sound of credit card swipes, mobile transfers, QR code scans, and various other non-cash transactions quietly paints our daily routine.
In this blog post, we will explore the top 5 payment industry trends in 2024 that are anticipated to redefine the financial landscape—a journey worth keeping a close eye on.
1. Convenience is the choice: Mobile payments and digital wallets will dominate 2024
In 2024, we witness a paradigm shift as convenience takes the forefront. With mobile payment adoption expected to reach 4.8 billion by 2025, leaders in a specific country or region could see remarkable revenue growth, especially as many mobile apps are heavily integrated into the provider’s other financial services. Statistics show that the volume of mobile payment transactions reached $1.7 billion in 2021, a 27% annual increase. Over two billion people used mobile payments in 2021. (Curry, 2023) This growth can be attributed to the convenience and security digital wallets offer.
Mobile payments have revolutionized people’s transactions, allowing them to pay for goods and services quickly and easily using their smartphones. With the increasing popularity of e-commerce, digital wallets have become a preferred payment method for many consumers. Not only do they provide a secure way to store payment information, but they also offer additional features such as loyalty programs and rewards. Digital wallets have also gained traction in offline retail, with more and more businesses accepting mobile payments through platforms like Apple Pay and Google Pay. As technology advances, we can expect digital wallets to become even more prevalent, transforming how we handle our finances.
Valor PayTech is forging ahead in revolutionizing mobile payments with robust features. From streamlined invoicing to seamless PayNow links and the efficiency of QR code payments, Valor PayTech has multiple products and solutions under its wrap for you to explore redefining the landscape of financial transactions. The introduction of the ValorPay mobile app further amplifies the flexibility and convenience, transcending geographical boundaries. With QR codes unlocking new dimensions and PayNow links bridging the gap, Valor PayTech stands at the forefront of mobile payment innovation, creating a dynamic and accessible financial ecosystem.
2. Contactless payments: Transforming the face of payment technology
The global contactless payment market was valued at USD 34.55 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 19.1% from 2022 to 2030. The growth is attributed to the increasing global adoption of digital payment platforms for faster payments (Contactless Payment Report, 2030). This surge in popularity can be attributed to the convenience and security offered by contactless payments, allowing consumers to tap their devices to complete transactions quickly and securely without any physical contact or the hassle associated with carrying cash.
Card issuers are increasingly implementing contactless mechanisms for payment cards across the globe, thereby contributing to the market’s growth. Valor Paytech continues to focus on the ease of payment acceptance for all methods across all POS terminals. The contactless payments are offered by all our POS terminals, as well as the security features.
The Vault makes transactions more accessible and secure for merchants by providing a safe and compliant way to store and access customer card information. Valor Updater keeps your payment card data accurate and minimizes declined transactions and authorization fees by providing timely updates on Visa®, Mastercard®, American Express®, and Discover® cardholders. Valor Shield and certified processors add multiple transaction security levels, helping prevent problematic transactions.
3. B2B Excellence and Innovative Partner Programs Reshaping Business Transactions
In business transactions, the future unfolds with B2B excellence and innovative partner programs. According to HubSpot’s 2022 survey, almost half of organizations attribute at least 26% of their revenue to partners, with 12.6% deriving over half of their revenue from partner relationships. (Fostering B2B Loyalty). B2B organizations acknowledge the growing significance of brands, with approximately 6 in 10 B2B marketing leaders globally noting the importance of brand building in response to economic conditions. Moreover, there’s a reported uptick in spending among B2B marketing leaders to enhance brand awareness. (Fostering B2B Loyalty Through Partner Programs, n.d.)
Navigating the future of business-to-business (B2B) interactions, Valor PayTech brings B2B programs and innovative partner solutions to the forefront. Embracing the future of financial transactions, Valor PayTech has ACH processes, sustainable e-invoicing solutions, exclusively customized white-labeled brochures, and marketing materials for our Independent sales organization (ISO) partners and independent software vendor (ISV) partnerships. Our commitment extends to hosted payment pages and shopping cart integrations, ensuring a comprehensive and streamlined experience.
Moreover, our compatibility with QuickBooks adds a layer of efficiency to financial operations. Valor PayTech is not just keeping pace with industry trends but setting new standards for the B2B landscape, offering a diverse array of programs and integrations to meet the evolving needs of businesses.
At Valor PayTech, our partners can take advantage of L2 and L3 transactions, which offer significant benefits in increased savings and interchange. L2 transactions refer to level 2 data, which includes additional information beyond the basic transaction details. This additional data allows for better categorization and analysis, resulting in potential business cost savings. L3 transactions, on the other hand, involve even more detailed line-item data, enabling enhanced reporting and analysis capabilities. By utilizing L2 and L3 transactions, businesses can optimize their interchange rates, reducing costs and increasing savings in the long run.
4. Empowering customer experiences with loyalty programs & recurring payments
Loyalty rewards programs and gift card offerings both play a role in keeping customers coming back to their stores. On average, U.S. consumers belong to 16.6 loyalty rewards programs and actively use about half of them. Additionally, Oracle research found that 77 percent of millennials redeem loyalty rewards at least once per quarter. (Dougherty, 2023)
Gift cards also encourage return visits. Research shows gift cards are likely to bring in additional revenues. Blackhawk Networks research shows consumers spend $31.75 more on average than the face value of a gift card. (Get the Facts on Gift Cards, n.d.) According to Oracle, millennials are most willing to pay for premium loyalty programs. 70% of millennials understand the value of loyalty programs and are more willing to pay a premium in exchange for valuable perks such as the free shipping provided by Amazon Prime. (Oracle, 2020)
Valor PayTech’s Engage My Customer™ feature reinvents customer engagement with the changing payment landscape. Driven by customizable filters like VIP status and shopping patterns, it empowers businesses to create personalized marketing campaigns. It ensures multi-channel communication with SMS, email, and paper receipt marketing options. Not only does it enhance customer retention by addressing negative feedback instantly, but it also targets VIPs and large spenders, fostering loyalty. Embracing the wisdom that customer satisfaction is worthless while loyalty is priceless, we now offer a tool to hold the priceless under your wraps securely.
Offering secure and easy recurring payments is becoming the new norm for a positive customer experience. Tools to ensure the card information remains safe and up-to-date, like Valor Updater and The Vault, will continue to drive innovation. Valor Updater streamlines business operations by updating expired card details, whereas The Vault protects and encrypts card information, keeping it safe and ready for frequent, recurring transactions.
5. The Confluence of AI and Blockchain: Reshaping Financial Horizons
Artificial Intelligence and its advancements in machine learning algorithms utilize sophisticated tools to optimize and secure financial transactions. AI advancements in predictive data analysis play a vital role in fraud detection, predicting consumer spending patterns, and streamlining transaction processes. Natural Language Processing (NLP) powers chatbots, enhancing customer service by understanding and responding to inquiries. As the saying goes, it’s not magic; it’s the power of artificial intelligence, and we are on the brink of witnessing its enchanting possibilities unfold in the global payment landscape.
Inspired by the human brain, neural networks identify anomalies in large datasets, particularly crucial in fraud detection. Predictive analytics leverages statistical algorithms to forecast transaction volumes, aiding resource management during peak periods. Blockchain is another technology that has the potential to reshape the financial sector and emerge as the most populist payment industry trend in 2024.
Blockchain is a secure, unalterable ledger facilitating real-time, transparent data exchange among multiple parties during transactions. This network seamlessly tracks various elements like orders, payments, and production. With members sharing a unified view, trust and confidence in transactions are bolstered, leading to enhanced efficiencies and new opportunities. (Blockchain and Artificial Intelligence (AI), n.d.)
Contactless payment Market:WiseGuyReports.com adds “Global Contactless payment Market Research Report 2020” reports to its database.Executive SummaryGlobal Contactless payment Market is valued approximately at USD 9.3 billion in 2019 and is anticipated to grow with a healthy growth rate of more than 11.70% over the forecast period 2020-2026.The Contactless Payment is a protected method intended for the transaction of the payments done by credit cards, debit cards, smartphones, and others.
For instance, in January 2020, CPI Card Group unveiled dual interface metal cards that distinctively combine high-quality design and contactless capabilities.
Similarly, in October 2019, Mobeewave and IDEMIA prolonged their business to install safe mobile PoS and fare authentication across Australia.
However, high cost of deploying contactless payment technologies impedes the growth of the market over the forecast period of 2020-2026.Request Free Sample Report @ https://www.wiseguyreports.com/sample-request/5272733-global-contactless-payment-market-size-study-by-componentThe regional analysis of global Contactless payment market is considered for the key regions such as Asia Pacific, North America, Europe, Latin America and Rest of the World.
Whereas, Asia-Pacific is also anticipated to exhibit highest growth rate / CAGR over the forecast period 2020-2026.
Factors such as growing purchasing power along with increasing acceptance of this mode of payment would create lucrative growth prospects for the Contactless payment market across Asia-Pacific region.Major market player included in this report are:ACS (Advanced Card Systems) Ltd.Chip & Pin Solutions Ltd.Mifare Pty LimitedIngenico Inc.Gemalto N.V.Verifone Systems Inc.Heartland Payment Systems Inc.On Track Innovations Ltd.Castles Technology Co. Ltd.Bindo Labs Inc.The objective of the study is to define market sizes of different segments & countries in recent years and to forecast the values to the coming eight years.
Global Contactless Payment Market Research Report: By Technology (radio frequency identification, near field communication, host card emulation), Component [Hardware (Point of sale, Cards, Others), Solution and Service [Consulting, Integration and deployment, Support and maintenance)], Payment Mode (smartphones, smartcards, others), Vertical (BFSI, Hospitality & Travel, Media & Entertainment, Retail, Transportation & Logistics, Healthcare and others), Region (North America, Europe, Asia Pacific, Middle East & Africa and South America) - Forecast till 2025Market SnapshotAccording to MRFR, global Contactless Payment Market is expected to register a CAGR of 11.2% during the review period of 2019 to 2025.Market HighlightsA variety of factors lead to the growth of contactless payment systems such as innovation of contactless payment technologies, increased recognition among buyers of plastic currency, increased purchasing frequency and the need for quick checkout time without the hassle of waiting in long queues.
With the increasing integration of contactless payment technology into mobile handsets and smart phones, demand for contactless payment solutions has grown immensely across all countries.
Retailers are modernizing their brick-and - mortar shops to offer quality customer support and opening up online outlets to raise sales.
Mobile payments at retail stores have helped accelerate the transaction process and decrease counter queues.Get a Free Sample @ https://www.marketresearchfuture.com/sample_request/9558The lack of awareness of contactless payment offers, however, and the lack of adequate infrastructure are hampering market growth.
The initial implementation cost, policy restriction on the number of contactless payment transactions per day and the amount cap that can be transacted per day are few contactless payment shortfalls that impede the growth of the contactless payment industry.
The risk of spyware, malware, and virus attacks resulting from the use of numerous systems is limiting the global adoption of contactless payment.Market SegmentationThe Global Contactless Payment Market has been segmented based on component, payment mode, technology, vertical, and region.Based on Technology, the market has been segmented into near field communication, radio frequency identification, and host card emulation.Based on the Component, the market has been segmented into solution, hardware, and service.
