As 2022 comes to an end, many consumers have returned to in-store shopping but are continuing to use contactless and frictionless payments. The Fintech industry has presented new methods of billing and payments that has brought new opportunities to businesses. With more technology driven consumers, businesses and banks are pressured to offer advanced digital accessibility. In this article, we will discuss the top payment trends expected in 2023.
Digital Wallets
Apple Pay, Google Pay, and PayPal are just a few of the digital wallet options most used at the checkout counter. Digital wallets were adopted fairly quickly during the pandemic and more consumers are still using them moving forward because of its ease and contactless ability. According to PYMNTS.com, more than 4 billion global consumers will shop using digital wallets by 2023. If businesses are not accepting digital wallets as a payment option, this will limit the way customers can pay.
Buy Now Pay Later (BNPL)
BNPL exploded in 2022 and will continue well into the future. This service gives retailers and e-commerce stores the ability to offer point-of-sale financing to their customers. BNPL services have become increasingly popular due to a decrease in purchasing power for consumers. The BNPL industry is expected to reach $680 billion in transaction volume worldwide by 2025.
As-a-Service Models
Many consumers and businesses are looking for customization, flexibility, and convenience in the goods and services they want. As-a-service models provide an end-to-end packaged solution that is powered digitally for easy integrations. This type of model continues to grow as businesses expands into new markets and new functionalities. Payments-as-a-service is becoming increasingly popular as companies look to offer financial services to their clients. These models can help generate new revenue streams for many industries and increase business valuation.
AI Technologies
Artificial Intelligence is a critical part of the fintech space in terms of collecting data, analyzing information, security, and facilitating transactions. Many financial institutions already use AI in some of their systems to personalize the customer experience. It can also protect against cybercrimes, money laundering, and financial fraud. AI is constantly evolving, and FinTech will continue to be one of the leading industries to benefit from the power of AI.