Over the past decade, a wave of innovation has swept through all corners of the payments landscape. As a result, the needs of market participants have evolved and they continue to do so at a substantial pace.
Account-to-Account Payments Soar
Although A2A payments are not new, API technology and the move to open banking have provided the payment rails for A2A payments to take off. We expect rapid growth to continue in step with further adoption worldwide of instant digital payment solutions for retail and corporate use.
Payment Fraud Explodes
Combatting Authorized Push Payment (APP) fraud remains a challenge because it happens in real time and cannot be reversed. We expect wider adoption of confirmation of payee (CoP) and similar controls to temper APP fraud going forward.
Reducing the Cost of Payments Becomes Imperative
A confluence of factors from high interest rates to volatile credit markets are driving up the cost of payments and making liquidity management ever more challenging. Automating payments processes to reduce failed payments and prevent fraud will remain a top focus for businesses looking to reduce costs in 2024.
Corporates Drive for Efficiency
Corporates are increasingly bringing payments operations in-house to gain greater control and deliver a better customer experience. We expect the number of companies who manage their own payment operations to increase significantly.
Banking as a Service (BaaS) Gains Momentum
Banks are transforming their payment service operations and diversifying revenue by offering real-time payments capabilities to corporate and other customers through APIs.
News Source: https://risk.lexisnexis.com/
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