On March 14, IDC Financial Insights released ten predictions (2023) for global banking, bank-to-company business, insurance, payment technology, capital markets (capital management technology) and digital credit.
In the report, IDC’s team of analysts outlines the key factors influencing IT and business decision makers to take responsibility for these expenses and use them effectively, and that digital-first companies will be able to adapt quickly to the connected economy that is sure to come in the coming years, and gives the top 10 predictions for the Future Intelligence market over the next five years.
The top 10 top 10 global payment predictions are as follows:
1: Payment as a Service (PaaS)
While the traditional model isn’t going away, PaaS will become an increasingly important part of the global payments infrastructure, with 50% of global banks using payment-as-a-service for some or all of its payment processing by 2028.
2. Real-time B2B
By 2027, B2B payment costs will be reduced by 5% through the integration of real-time networks.
In addition to payment speed, the cost advantage of real-time payment is also an important reason for customers to adopt the new payment system.
3. C2B BNPL
Through the continued promotion and adoption of mobile wallet, buy now, pay later apps, the installment plan will reach 7% of online purchase transactions by 2026. Mobile apps are an important driver of growth for BNPL and help merchants gain visibility.
4.AI For Fraud
Fraud will fall by about 10% in 2028 because of more sophisticated artificial intelligence, or deep learning algorithms.
5.Request to Pay
By 2024, based on the rise of demand-to-pay, e-invoicing and real-time payments, 30% of corporate banks will offer reconciliation as a service – e-invoicing and real-time payments, which will also become a new revenue stream. Development of new revenue streams.
6.Retail Payment Options
Given consumer demand for a variety of payment options, 70% of retailers will add at least two new payment options such as QR codes, contactless or other alternative payment methods by 2024. Retailers that do not offer more diverse payment options risk losing sales opportunities and customers.
7. Fintech and B2B BNPL
Global B2B BNPL to reach $500 billion by 2026, fintech and BNPL compete with traditional financial institutions to provide working capital loans to smes.
With advanced credit issuer processing platforms, non-bank accounts and card-like accounts will account for 3% of the market by 2025.
By 2026, 15% of cross-border payments will be made through blockchain-based messaging and settlement.
Cryptocurrencies and distributed ledgers have the potential to upend the cost, speed and complexity challenges of cross-border payments. Coordinated updates to traditional regulatory rules by central banks around the world, consideration of cryptocurrency technology for payment and management, etc.
By 2026, more than half of the world’s leading banks will implement Distributed finance and cryptocurrency-related business requirements.
From the IDC report, we can also see that the global payment industry is undergoing great changes. In the future, consumers will further increase their demand for diversified payment methods, which also means that the reform of mobile payment methods will eliminate many merchants.
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