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1、Global Payments and Fintech Trends Report 2024Insights into Payments and BeyondThe Paypers Global Payments and Fintech Trends Report 2024RELEASE VERSION 1.0FEBRUARY 2024COPYRIGHT THE PAYPERS BVDESIGN:MYRIAD DESIGN ALL RIGHTS RESERVEDTEL:+31 20 893 4315 FAX:+31 20 658 0671MAIL:EDITORTHEPAYPERS.COMCon

2、tact usFor inquiries on editorial opportunities please contact:Email:To subscribe to our newsletters,click hereFor general advertising information,contact:Mihaela MihailaEmail:The Paypers Global Payments and Fintech Trends Report 20243GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|INTRODUCTIONAs the

3、 payments sector undergoes continuous evolution,one undeniable truth emerges:the interplay of technology,innovation,regulation,and talent is steering its trajectory.Keeping pace with this evolution and understanding the driving forces behind its growth is imperative for individuals and businesses na

4、vigating this dynamic landscape.The Paypers Global Payments and Fintech Trends Report 2024 serves as a guiding light,spotlighting significant trends for 2024 and beyond on a global scale.Drawing from insights provided by payments and fintech experts worldwide,we offer a diverse perspective to help b

5、usinesses and financial institutions gain clarity on emerging growth areas.Our strategic analysis,supported by the latest payments and fintech market forecasts,goes beyond mere buzzwords,empowering all players in this industry to chart their path to success with actionable strategies and recommendat

6、ions.The Paypers has gathered insight and expertise from dozens of leaders representing companies operating right across the financial services spectrum.Our engagement for this report involved extensive discussions with innovation leaders,technologists,and industry experts from top financial institu

7、tions,businesses,solution providers,payment companies,and leading consultancies monitoring the latest innovations and trends in payments and fintech across key markets worldwide.The Global Payments and Fintech Trends Report 2024 covers a spectrum of essential aspects:Cutting-edgepredictions:A strate

8、gic assessment of significant trends,covering instant payments,fraud prevention,Embedded Finance,Open Finance,BNPL,digital currencies,and more,offering a comprehensive overview of industry developments.Valuable,quantifiableinsights:A clear perspective on emerging growth areas,enabling stakeholders t

9、o understand the industrys trajectory.Advantagethroughintelligence:Our report empowers businesses to explore new opportunities,make informed decisions,and gain a competitive edge,leveraging intelligence and educational resources to navigate this complex landscape.Globaldynamics:From the US to Latin

10、America,Europe,and Asia,our report explores unique influences on the industrys growth,examining how different regions shape the payments landscape through demographic shifts,political considerations,technological innovations,and regulatory changes.In the ever-changing landscape of global finance,fin

11、tech is undergoing a seismic shift,moving away from traditional structures towards a more equitable and efficient system fuelled by digital assets and AI.Geopolitical tensions,the climate crisis,and pivotal elections worldwide are shaping financial regulations,demanding responsible innovation.The cr

12、ypto domain anticipates a resurgence,while fintech startups pivot towards profitability.Stakeholders navigate a spectrum of impacts,from positive regulatory dialogues to challenges for SMEs.Amidst this,opportunities arise in financial education,addressing the unbanked,and the personalisation of AI-d

13、riven services.IntroductionOanaIfrimLead Editor at The Paypers4GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|INTRODUCTIONThreatsandopportunitiesanalysis:Analysing both threats and opportunities in the competitive ecosystem and their impact on various stakeholders.Futureoutlook:Offering insights int

14、o expected outcomes over the next 5 years,the report provides a forward-looking perspective,equipping stakeholders with a roadmap for anticipating and preparing for future industry shifts.Some key takeaways:anticipated trends for 2024 and beyondEmbeddedFinancegainsmomentum:In 2024,Embedded Finance i

15、s set to experience rapid growth.Shift signifies a move towards greater financial inclusion and increased accessibility,enabling non-financial businesses to enhance customer offerings.Cross-borderpaymentsareundergoingamajortransformation:The cross-border payments industry is poised for significant c

16、hange,led by a focus on real-time,interoperability,and cost-effectiveness.Fintechs are the main focus as they are building the infrastructure for real-time cross-border transactions.At the same time,the emergence of central bank digital currencies(CBDCs)will play an important role in emerging collab

17、oration,with greater emphasis on compliance and security.The aim is to provide faster,safer,and more transparent cross-border transactions.Whats more,the surge in stablecoins is paving the way for better economic interoperability and streamlined worldwide commerce.Latin America,specifically,stands a

18、s a pioneer in this transformative wave,showcasing fast adoption and integration of virtual currencies into everyday monetary transactions.The digital payments revolution,initiated amid the pandemic,is now solidifying,increasing the interest in cryptocurrencies across Latin America.Citing informatio

19、n from a Mastercard survey,a substantial percentage(51%)of customers in the area have actively used virtual currencies for purchases,with approximately 1/3 choosing stablecoins in their routine shopping activities.This widespread preference for digital currencies is propelled by a large portion of t

20、he population having limited access to standard banking offerings,providing an alternative towards a crucial financial lifeline for the underbanked communities.Latin Americas fintech landscape is rapidly embracing USDC,for instance,for various use cases.This includes ecommerce platforms integrating

21、digital dollars to enhance transparency and interoperability.Additionally,remittance platforms are leveraging USDC for streamlined cross-border transactions,marking its growing significance in the regions financial technology landscape.A2Apaymentschallengecarddominance:A2A payments are set to direct

22、ly challenge card payments in ecommerce,particularly impacting European markets.A movement is underway to reduce the primary role of cards,driven by a desire to cut costs for merchants and commoditise payment services.Publicdigitalinfrastructuregainstraction:The trend towards public digital infrastr

23、ucture,similar to Indias India Stack,is anticipated to gain global traction.Recognising its pivotal role in fostering a thriving digital economy,more countries are expected to explore its development.Banksembracetheopenecosystem:Banks are investing progressively in the open ecosystem,encompassing Op

24、en Banking,BaaS,and Embedded Finance,with notable momentum and commercial gains expected.Focusoncomplianceandsecuritypersists:In response to global conflicts and evolving regulations,there is a growing emphasis on compliance and security.Trends from 2023,including increased use of AI and machine lea

25、rning for sanctions screening and transaction monitoring,continue to shape the landscape.5GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|INTRODUCTIONCryptoresurgence:In the cryptocurrency realm,there is anticipation of a resurgence following the end of the crypto winter.Fintech startups are shifting

26、 their focus from relentless growth to prioritising profitability,and the concept of public digital infrastructure is gaining prominence globally.GenerativeAItechnologyholdspromise:Generative AI holds promise in financial services,offering numerous use cases to enhance existing tools and processes.H

27、owever,it comes with risks,and firms must develop new business processes,risk,and regulatory frameworks.Digitalisationandsustainability:These remain focal points for the European Commission in 2024,addressing potential disadvantages for vulnerable consumers in various legislative proposals.Initiativ

28、es such as the Accessibility Act and PSD3/PSR emphasise accessibility,protection,and inclusion for vulnerable groups in financial services.Globaleconomyandbalancinginnovationamidsttensions:The landscape of the global economy is heavily influenced by geopolitical tensions,the ongoing climate crisis,a

29、nd crucial elections in various states.Policymakers are increasingly emphasising responsible innovation and technology application to address these challenges.This underscores the need for a careful balance between technological advancements and global risks.Fintechmarketmatures:The fintech market i

30、s transitioning into a phase where innovation for innovations sake is no longer a viable strategy.Economic pressures and intense competition drive the need for genuine progress on key pain points.RiseofpaymentAPIsandoptimisation:Payment APIs are on the rise,constituting 34%of observed functionalitie

31、s,with a global focus on instant payments.In 2024,businesses increasingly adopt payment optimisation to enhance revenue by streamlining transactions and addressing issues like declined payments and checkout complexity.Traditionalinstitutionsembracecrypto-assets:Traditional financial institutions are

32、 undergoing a significant transformation,bridging the gap with crypto-assets.This involves creating crypto-related areas within banks for digital asset structuring,trading,and custody,driven by friendly regulations,specialised service providers,and the development of CBDCs(and stablecoins.Anticipati

33、ngagoldenageoffintech:Anticipating a golden age of fintech,the industry emphasises profitability overgrowth,with Asia expected to lead by revenues in 2030.The return to first business principles mirrors broader technology trends and risk management plays a pivotal role.The tokenization of assets,the

34、 shift towards Web3,and the growing importance of digital public infrastructure define the essence of fintech developments.Amidthefintechandpaymentsindustrytransformation,thisreportservesasathoroughguidetothetrendsshapingitsevolution.The Paypers Global Payments and Fintech Trends Report 2024equipsev

35、eryoneinthefinancialservicesindustrywithvaluableinsightsforstrategicdecision-making.Enjoyyourread!6GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|TABLE OF CONTENTSTable of ContentsIntroduction Global Fintech Evolution:Key Trends,Impacts,and Opportunitie

36、s Shaping Payments in Asia Pacific and EuropeExclusive Insights into 2024s Financial Landscape in Asia Pacific and Europe|Interview with Pat Patel&Matthias Krner,ElevandiThe Key Trends Shaping Indias Payments and Lending Landscape in 2024|Sameer Singh Jaini&Shashank Shekhar,The Digital FifthThe Evol

37、ution of A2A Payments in EuropeKey Trends Shaping A2A Payments in Europe:Opportunities,New Use Cases,and Future Outlook|Interview with Ludovic Francesconi&Fabian Mansfeld,EPI CompanyCross-Border Payments:Unravelling Trends in B2B,B2C,and C2B TransactionsTravel Management Solutions and the Changing B

38、usiness Travel Landscape in 2024|Interview with Oded Zehavi,Mesh PaymentsRetail CBDC Trends|Steve Pannifer,Consult HyperionNavigating the Evolving Landscape of Cross-Border Payments:Top Four Trends to Watch in 2024|Mirela Ciobanu,The PaypersOpen Finance and Embedded Finance:Revolutionising Financial

39、 ServicesThree Retail Banking Technology Trends to Watch in 2024|Kieran Hines,CelentOpen Data Regulatory Trends to Watch for in 2024|Vlad Macovei,The PaypersThe Old Guard Are Embracing New Opportunities|Mounaim Cortet,Jorgos Tsovillis&Thorben Peter,INNOPAY Digital Financial Inclusion:Legislative Saf

40、eguards for Vulnerable Consumers|Emanuel van Praag&Eugerta Mui,Erasmus University RotterdamPaytech Modernisation:Transforming Trends in Payment TechnologyThe Global Drive Towards Real-Time Payments:a Win-Win for Economies Worldwide|Interview with Craig Ramsey,ACI WorldwideThe Paytech Trends That Wil

41、l Drive Change in 2024|Irene Skyrnova,UnlimitPayment Optimisation:Not Just a Trend but a True Revenue Accelerator|Jasper Goeman,NuveiThe Convergence Between Crypto and Traditional Financial Markets|Bruno Diniz,SpiralemFraud Sophistication and Regtech Compliance:Evolutionary Trends in Financial Secur

42、ityA Balancing Act:Perfecting the Art of a Gold-Standard Customer Experience Amidst the Evolution of Digital Fraud and Payment Regulations|Edward Metzger&Emilio Rocchi,LexisNexis Risk SolutionsNavigating Compliance:Striking the Balance Between Efficiency and Effectiveness in Financial Technology Ado

43、ption|Interview with Adam McLaughlin,NICE Actimize3781417182021232530313336404243454749515254Looking ahead,were anticipating the end of the crypto winter and a strong emphasis on responsible innovation.Exciting opportunities lie in addressing financial inclusion,adapting to geopolitical shifts,and e

44、nhancing societal stability.Envisioning the future,we see a golden age for fintech on the horizon,with Asia at the forefront.Key developments in tokenization,Web3,and digital public infrastructure are poised to shape the landscape over the next five years.ElevandiGlobal Fintech Evolution:Key Trends,

45、Impacts,and Opportunities Shaping Payments in Asia Pacific and Europe8GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|TRENDS&OPPORTUNITIES SHAPING PAYMENTS&FINTECH IN APAC&EUThe authors highlight a shift towards rearchitecting the financial services system,leveraging technologies like digital assets

46、and artificial intelligence.This interview underscores the imperative of addressing global financial inclusion challenges through responsible innovation,while deftly navigating geopolitical complexities.Opportunities abound in serving the unbanked,advancing financial education,and harnessing AI for

47、personalised services.From your perspective,what are the key trends currently shaping payments in the fintech landscape in Asia Pacific and Europe?PatPatel:From my perspective,theres a noticeable push across Asia and beyond to rearchitect the existing financial services system.This involves moving a

48、way from legacy infrastructure in payment and banking services.The focus now is on applying technologies to address various issues.The primary goal is to make the financial services system more equitable,transparent,faster,and cost-effective.The application of new technologies,especially digital ass

49、ets,and artificial intelligence,plays a crucial role in enhancing efficiency.Additionally,the early stages of quantum computing are becoming apparent,amplifying the capabilities of artificial intelligence in data analysis for consumer and business services.ElevandiPatPatelandMatthiasKrnerfromElevand

50、iprovideinsightsintokeytrendsshapingfintechandpaymentsinAsiaPacificandEurope.In the upcoming years,global shifts in politics,economics,and technology,including the climate crisis and geopolitical challenges,pose complexities for fintech.Navigating this requires a balance of advanced technologies and

51、 responsible innovation,positioning fintech as a force for positive change in uncertain times.PatPatel:Founded Elevandi during his time at the Monetary Authority of Singapore and has since led the non-profit organisation to expand sustainably across Asia,Europe,and Africa.Pat Patel Executive Directo

52、r ElevandiMatthiasKrner:Matthias Krner is a highly respected thought leader when it comes to planning,building and operating disruptive and customer-centric banking business models.Matthias Krner Managing Partner,EMEA Elevandi9GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|TRENDS&OPPORTUNITIES SHAPI

53、NG PAYMENTS&FINTECH IN APAC&EUThis overarching trend is gaining momentum,with regulators actively participating in the dialogue.A notable shift from the past,where policymakers seldom engaged with the industry.In Southeast Asia,for instance,were witnessing the construction of payment bridges between

54、 countries with real-time payment systems.These bridges,such as those between Singapore and Thailand,Malaysia,and India,enable seamless transactions with minimal costs.Individuals can send payments using just a mobile phone number,providing a foundation for organisations to offer valuable services o

55、n top of these bridges.This signifies a significant shift in rearchitecting the financial services system.Another noteworthy development is the shift in focus among fintech startups from growth at all costs to prioritising first principles and profitability.While this shift poses challenges,it also

56、brings opportunities.The past few years have been tough for many fintechs due to drying funding sources,leading to a substantial number of bankruptcies in 2023.However,this cull has also allowed startups with robust business models to weather the storm.Moving forward,a natural selection process will

57、 occur,with the fittest fintech startups thriving and those with questionable business models fading away.This phase is akin to the Indian cultural belief in a cycle of creation,maintenance,and destruction.We are currently in the destruction phase,resulting in the culling of several fintechs.On the

58、positive side,we anticipate a rebirth of fintech with a focus on new first principles,shaping how businesses are engineered or built in 2024.MatthiasKrner:In our comprehensive exploration of the global political and economic landscape,which profoundly shapes our environment,it becomes vividly appare

59、nt that the next five years hold the promise of both desired and unintended transformations.As we delve into the external forces and overarching mega-trends currently in play,we encounter profound and far-reaching influences.The persistent climate crisis,an enduring concern,carries profound implicat

60、ions for the fintech sector,particularly within the realm of payment systems.Concurrently,the relentless march of digital transformation is further amplified by the omnipresence of artificial intelligence.Geopolitical complexities,occasionally reminiscent of the Cold War era,present unprecedented ch

61、allenges,particularly as we approach the pivotal year of 2024,marked by elections in over 70 states,including populous nations such as India,the US,and Indonesia.These geopolitical shifts have the potential to reverberate through the very fabric of our near-term development.Maintaining a vigilant ga

62、ze upon this multifaceted landscape is essential,for it contributes significantly to the overarching narrative.The convergence of political events and financial regulation may signify the conclusion of what some have colloquially termed the golden era in banking.Populist elements within governments

63、may advocate for deglobalisation and protectionism,impacting all cross-border concepts and multinational operations,including crucial areas like cross-border data usage.Equally paramount is the evaluation of debt rates,such as corporate loans in China,consumer debt,and the United States national deb

64、t.Much of this is beyond the control of fintech ecosystem stakeholders.Nevertheless,these dynamic factors will indelibly shape our future landscape.Navigating these multifaceted challenges necessitates a delicate equilibrium,one that harnesses the potential of cutting-edge technologies like quantum

65、computing,artificial intelligence,the development of digital currencies,tokenized assets,or stablecoins,while prudently mitigating global risks and guarding against the potential misuse of these transformative technologies.The juncture of all these elements beckons us to explore how technology can b

66、e leveraged to address daunting challenges,including climate catastrophes and the refugee crisis.It invites us to envision fintech as a potent force for good,capable of bolstering nations and communities,and as a means to counter the rise of political populism.This intersection underscores the vital

67、 importance of responsible innovation and conscientious application of technology as we embark on this transformative journey.PatPatel:Regarding cryptocurrencies,I believe we might witness the end of the crypto winter early next year.Digital assets could regain the potential they showed a few years

68、ago,before the onset of the winter.This resurgence is certainly worth considering.Shifting gears to the broader fintech landscape,particularly startups,it seems were approaching the end of a cull period.The fintech winter,largely influenced by a drying up of capital,might see some green shoots as we

69、 move forward.10GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|TRENDS&OPPORTUNITIES SHAPING PAYMENTS&FINTECH IN APAC&EUNow,a concept I hinted at earlier is the idea of public digital infrastructure.About five to six years ago,India pioneered the India stack-a comprehensive framework comprising an id

70、entity layer,a real-time and interoperable payments layer,a data exchange for financial and non-financial information,and a consent architecture framework.These pillars are fundamental to any thriving digital economy.Looking ahead to 2024,I anticipate more countries exploring the development of thei

71、r own versions of this stack within their markets.While India and Singapore have already embraced similar concepts,several nations lack a national public digital infrastructure.The coming year may witness significant movement in this space as more countries recognise its importance and seek to estab

72、lish their own digital frameworks.What factors and aspects do you believe are driving the trends you mentioned?MatthiasKrner:Reflecting on this question,Ive touched upon several mega trends that align with Pats observations.Regarding the end of the crypto winter,I must say,that weve observed this re

73、surgence within our startup Tradelite Solutions.The Web3 community,particularly in the realm of crypto and tokenized assets,is regaining momentum.Two years ago,there was a frenzied investment atmosphere where anything and everything crypto-related received attention,regardless of purpose or impact.S

74、ubsequently,in 2023,a realisation set in-the lack of purpose and sustainable business models became apparent.However,we are currently witnessing a renewed interest,largely fuelled by Bitcoins prominence and by granting the allowance for Bitcoin ETFs.Regulation,as always,plays a pivotal role,acting a

75、s both a market maker and closer in the financial services arena.Another driving factor is the urgency imposed by the climate catastrophe.The need for industries,including financial services and fintech,to take proactive measures is evident,especially when political will and effective action from gl

76、obal forums like COP28 seem insufficient.Industries and consumers are compelled to drive change when political entities fall short.Moreover,as we approach a politically charged year with geopolitical tensions,disinformation and cybercrime become a prominent concern.States engaging in disinformation

77、and cybercrime activities during periods of heightened geopolitical controversies contribute to the overarching factors influencing trends.Lastly,technological developments present both opportunities and risks.While we operate in an era of unparalleled technical capabilities,the same promise is acco

78、mpanied by global risks that necessitate stabilisation efforts.Balancing on this edge requires careful consideration of these overarching environmental factors,laying the groundwork for our further discussions on specific sub-chapters within fintech and payments.In essence,regulation,climate catastr

79、ophe,geopolitical tensions,disinformation,cybercrime,and technological advancements collectively shape the landscape we navigate.These trends set the stage for a nuanced exploration of fintech and its subcategories.PatPatel:I would like to emphasise a couple of additional points.In 2024,as we addres

80、s the ongoing issues,its crucial to note that approximately 1.4 billion people remain unbanked.Equally concerning is the challenge of underbanked individuals who possess financial products that are not entirely suitable for their needs.This nuanced perspective brings to light the complexity of finan

81、cial inclusion issues,extending beyond mere unbanked statistics.Moreover,a substantial number of individuals face high debt levels,rendering their existing financial products practically unusable.This creates significant pinch points globally,contributing to the urgency in addressing these challenge

82、s.The pressing need to cater to the financial needs of the unbanked and underbanked populations serves as a fundamental driving force for change.Another noteworthy factor is the ongoing shift towards Web3.Much like the transition from Web2 in the late 2000s,we anticipate a gradual movement towards W

83、eb3.Currently navigating a Web2.5 landscape,the momentum towards Web3 is gaining traction,especially with the anticipated end of crypto winters in the coming year.This shift marks a secular trend,shaping the future trajectory of technology and finance.11GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024

84、|TRENDS&OPPORTUNITIES SHAPING PAYMENTS&FINTECH IN APAC&EULastly,the active role taken by regulators is a pivotal factor influencing industry dynamics.Regulators are becoming increasingly vocal in their engagements with the industry,contributing both positive and negative perspectives.The synergy bet

85、ween policy,finance,and technology is a driving force behind meaningful changes.Acknowledging the impact of policy decisions on the financial and technological realms is crucial,and this intersection serves as a catalyst for substantial transformations.In essence,the factors driving trends encompass

86、 not only technological and financial considerations but also the imperative to address global financial inclusion challenges and the evolving landscape of regulatory involvement.These multifaceted elements collectively shape the narrative of fintech and its trajectory into 2024.MatthiasKrner:Certai

87、nly,Pat.Your insights are valuable,especially when considering opportunities and use cases within fintech.Particularly,addressing the unbanked is crucial,and the numbers,especially in Southeast Asia and Africa,highlight the severity of the issue.Latin America,with around 50%lacking access to fair fi

88、nancial support,stands out as an opportunity.Exploring how fintech can support local societies to enhance stability,and in turn,contribute to mitigating challenges related to the refugee crisis is a significant avenue.The refugee topic,while potentially less prominent in Asia,is a pressing challenge

89、 in Europe.It places substantial pressure on societies and democracies,leading to increased support for populist and right-wing parties.Finding fintech solutions to this complex issue could be transformative and gain widespread support.Additionally,your emphasis on financial education as a broader o

90、pportunity is noteworthy.Equipping people with the knowledge to handle money,regardless of the amount,is essential for individual empowerment and economic well-being.In summary,your perspective highlights the potential for fintech to make a positive impact globally,addressing critical issues and con

91、tributing to societal and economic development.Lets dive a bit deeper into the impacts on different stakeholders.MatthiasKrner:Ive observed a positive trend where regulators are increasingly open and proactive.Its not merely about imposing additional regulations but engaging in open dialogues and kn

92、owledge exchange.This is evident in organisations like Elevandi,where there are key discussions between regulatory bodies and industry representatives.Regulators openly acknowledge the overwhelming nature of these developments and seek collaborative solutions.Its not just about reacting to more regu

93、lations but adapting their organisational structure to effectively cope with these advancements.Moving beyond regulation,the overall technological landscape is creating a widening gap between organisations ready to harness these advancements and those falling behind,often due to budget constraints.T

94、his disparity poses a real risk,leading to whats commonly referred to as a tech death wave.Organisations that fail to embrace technological evolution may find themselves obsolete.Moreover,this challenge extends beyond the positive aspects of technology,such as AI enhancing customer services,to the n

95、egative facets like cybersecurity threats.The readiness of financial institutions to combat cybercrime becomes crucial.Pat mentioned the shakeout within the fintech industry,which might be digestible in the short term.However,in the long run,it may consolidate power into the hands of a few global te

96、ch giants.This consolidation raises concerns about monopolies and the ability to regulate such entities effectively.The challenge is exemplified by big social media companies disregarding European regulations on issues like hate speech.This trend could pose challenges in regulating their financial a

97、ctivities.12GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|TRENDS&OPPORTUNITIES SHAPING PAYMENTS&FINTECH IN APAC&EULooking at the startup environment,it becomes imperative for nations to encourage and support entrepreneurial generations.In Europe,particularly in Germany,theres a noticeable lag in fi

98、nancial support for startups compared to other nations.Encouraging startup initiatives is crucial for fostering innovation and economic growth.So,as we navigate these trends,there are multifaceted impacts on regulatory bodies,businesses,and the broader landscape,each presenting its unique set of cha

99、llenges and opportunities.PatPatel:Please let me add some thoughts to the discussion.Businesses across various scales,from micro-SMEs to SMEs and the intermediate space between ME and corporate segments,have faced considerable challenges since the onset of COVID-19.The winter season has cast a chill

100、 over digital assets and fintech,and high-profile banks like Credit Suisse and Silicon Valley Bank have encountered struggles in 2023.The need to support this business community is pressing,and the rearchitecting of financial services infrastructure will play a pivotal role in aiding the next wave o

101、f organisations.The overarching goal of these trends is to establish an equitable,fairer,transparent,and cost-effective financial services system.This is poised to have a significant impact on businesses.Governments worldwide share concerns about the difficulties faced by their businesses,particular

102、ly in the SME sector and micro-SMEs.The trends discussed hold the potential for substantial changes that will contribute to addressing these challenges.On the consumer side,the focus remains on creating a fairer financial world.Tackling issues like the 1.4 billion unbanked individuals globally and a

103、ddressing challenges faced by the underbanked is crucial.An alarming statistic points to around 110 million displaced individuals and 35 million refugees globally in 2023.By re-architecting the financial services system and leveraging technologies,especially in digital identity,these communities can

104、 be better supported.Digital identity offers a borderless existence,ensuring credentials can travel with individuals,unaffected by crises or changes in location.The impact on regulatory bodies is an important aspect we havent delved deeply into.Policymakers and regulators are becoming more active in

105、 discussions and project design to address challenges.However,the responsibility tied to the use of technology is gaining prominence.Policymakers,regulators,and governments are now giving serious thought to the responsible use of technology.This aligns with recent developments like the European Unio

106、ns AI Act,emphasising the need for responsible technology application.When considering the benefits for regulators,consumers,and businesses,the key takeaway is an improved financial system that fosters prosperity,equity,and economic stability.The existing challenge lies in the deep-seated legacy fac

107、tors,including infrastructure,personnel,and processes.Embracing new technologies holds the promise of initiating positive changes in these entrenched systems.Could you please elaborate on other opportunities and use cases associated with the trends mentioned earlier?MatthiasKrner:Its essential to no

108、te that when we initiated Fidor Bank around 15 years ago,during the financial crisis of 2008-2010,our objective was to create better banking.We aimed for transparency,inclusivity,and the avoidance of conflicts of interest that plagued the financial landscape at the time.Back then,terms like fintech

109、werent as common,and the movement was about creating ethical,value-centric financial services.Today,however,the focus seems to have shifted towards commercialisation and monetisation,perhaps overshadowing the initial purpose.Financial education and inclusion involve a market of 1.5 billion people,ma

110、inly in emerging markets.While the tickets may be small,the fintech industry is uniquely positioned to serve this vast market.Financial education is essential for societal stability,just like health and nutrition.It stands as one of the most significant use cases to consider.PatPatel:As Matthias men

111、tioned,weve touched on some aspects already.The 1.4 billion underbanked or unbanked individuals represent a significant opportunity.Addressing the refugee challenge is not just an opportunity but also a responsibility for fintech to tackle.Another potential lies in personalising services through adv

112、ancements in AI and generative AI.This allows for the creation of more consumer-centric financial products,offering intuitiveness precisely when needed,aligning with the concept of embedded finance.Enhancing the last-mile service is interconnected with this strategy.Furthermore,expanding into Asia p

113、resents vast opportunities.13GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|TRENDS&OPPORTUNITIES SHAPING PAYMENTS&FINTECH IN APAC&EUExpanding on Asias growth potential,Southeast Asia stands out with a rising middle class and high digital penetration through mobile phones.This provides an excellent o

114、pportunity to offer financial products across the marketplace.India,having a robust year,is expected to continue its growth with over a billion people and ongoing work.Japan and China are also gradually opening up.Despite challenges due to deglobalisation,theres an emerging opportunity for organisat

115、ions to build connections from Europe,Africa,or the US into Asia.Though nascent,we anticipate a reversal of the deglobalisation trend,with regions and clusters of countries coming together in the coming year.Now,for our final question,despite covering a substantial amount,Id like to explore any addi

116、tional insights you may have regarding expected outcomes and developments in payments and fintech over the next five years.MatthiasKrner:Certainly.Id like to emphasise the uniqueness of the current era,marked by unprecedented technological capabilities,geopolitical complexities,and the escalating cl

117、imate crisis.This convergence,particularly the impact of the climate catastrophe,introduces a high degree of unpredictability.Looking ahead,the next five years appear challenging to predict,given the sustained uncertainty.Success in this landscape hinges on organisations embodying resilience,stabili

118、ty,and a dual commitment to flexibility and agility.While it is acknowledged that businesses should not exploit negative developments,addressing the challenges presented by geopolitical issues and the climate crisis is both imperative and a moral duty.Companies actively contributing to overcoming th

119、ese challenges will find their place in this VUCA world.Its essential to be prepared and proactive,as ignoring the reality of these issues is not a viable strategy and may lead to adverse consequences.Therefore,my vision for the next five years centres around the mega-trends of agility,flexibility,a

120、nd resilience.PatPatel:Looking ahead over the next five years,I foresee a golden age for fintech,marked by a return to first business principles,emphasising profitability over unchecked growth.This shift mirrors trends observed in the broader technology sector.In terms of market dominance,I anticipa

121、te Asia emerging as the leading Fintech market by revenues in 2030.The growth trajectories,however,will vary,with Latin America,and Africa experiencing the highest rates,albeit from smaller bases compared to Asia,the US,and Europe.While not traditionally considered glamorous,risk management will pla

122、y a pivotal role in the coming years,redefining how organisations approach and utilise frameworks to mitigate risks.Tokenization of assets is expected to gain momentum,especially in the banking sector,with both fintechs and government projects increasingly exploring this avenue.The shift towards Web

123、3 is anticipated to materialise,with the concept evolving beyond a singular definition,incorporating elements of cryptocurrency and artificial intelligence.As we move closer to this Web3 world,the combination of AI and decentralised networks will likely define its essence.Another notable development

124、 is the growing importance of digital public infrastructure,critical for powering digital economies.Regions such as Asia,Africa,and parts of Latin America are anticipated to make significant strides in this direction,influencing more traditional markets like Europe and the US to reevaluate their inf

125、rastructure strategies.This encapsulates my vision for the fintech landscape over the next five years.Elevandi is a not-for-profit organisation that engages with leaders from government,businesses,academia,and civil society to foster international collaborations with our members on technology innova

126、tion,application,and adoption.elevandi.ioSameerSinghJaini,with 26 years in BFSI,spearheads digital transformation as The Digital Fifths CEO.He has a rich track record of digital initiatives at DCB,Kotak Mahindra,and Citibank,and is a pioneer in the Banking and Fintech space.Sameer Singh Jaini Founde

127、r&CEO The Digital FifthIntroductionThe last decade has witnessed a revolution in India,with digital payments like UPI redefining transactional convenience and security,a vital step towards a cashless economy.Additionally,the rise of lending fintechs has opened access to finance,targeting previously

128、underserved segments.The emergence of neobanking and BaaS platforms have also been crucial,enabling traditional banks and new-age financial service providers to integrate and offer a wide range of services.This article explores future trends and their potential impacts on Indias payments and lending

129、 ecosystem.Future outlook:paymentsThe payments sector in India has undergone significant change,with UPI transactions in 2023 reaching 117.6 billion,valued at INR 183 trillion(Source:National Payments Corporation of India).National Payments Corporation of India(NPCI)has also been instrumental in the

130、 launch of new payment innovations such as AEPS and UPI123 for offline payments.While consumer payments are expected to continue growing,the industry is increasingly focusing on B2B payments and innovation in cross-border payments.We foresee these trends driving the Indian payments ecosystem forward

131、.The Key Trends Shaping Indias Payments and Lending Landscape in 2024The Digital FifthShashankShekhar,with over 20 years in tech,governance,and digital banking,has led infrastructure and Open Banking strategies,notably at DCB Bank.Hes recognised for an award-winning Omni Channel Framework and excels

132、 in security and IT governance.Shashank Shekhar Head of Consulting The Digital Fifth14GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|TRENDS&OPPORTUNITIES SHAPING PAYMENTS&FINTECH IN APAC&EU15GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|TRENDS&OPPORTUNITIES SHAPING PAYMENTS&FINTECH IN APAC&EUB2BPay

133、mentstobestreamlinedthroughinnovationfromexistingandnewplayersThe growing number of MSMEs in India requires a more streamlined approach to B2B payments.There is a significant opportunity for the development of enterprise-grade technology stacks that can integrate B2B payment processes with business

134、systems,simplifying payouts,collections,and cash flow management.This consolidation is expected to reduce complexities and increase efficiency in the B2B sector.Cross-borderpaymentfacilitatorswillgaintractionthroughinnovationandAPI-ledintegrationsWith the rise in international trade,robust cross-bor

135、der payment solutions are becoming increasingly necessary.Historically,complex regulations and financial risks have limited the growth of these services.API-led payment facilitators will emerge to improve risk management,cost reduction,and faster turnaround times for cross-border payments.These solu

136、tions are set to speed up cross-border payments by simplifying international complexities and enhancing the efficiency of global tradePayments-as-a-Service(PaaS)platformswillgaintractionwithvalue-addedservicesEfficient full-stack PaaS platforms are gaining traction in India for their easy deployment

137、 and embedded payments.These platforms now support multiple currencies to facilitate global trade and feature a robust API ecosystem for seamless integration with various financial services,ensuring interoperability.As the ecosystem evolves,these platforms are integrating reconciliation services wit

138、h rule-based analytics and enhancing security with AI and ML for fraud detection.Expected to grow domestically,these platforms will also look at expansion in the MENA and SEA regions.Future outlook:lendingThere has been a significant increase in loans disbursed through digital channels in the past d

139、ecade,especially unsecured loans,streamlined through Digital Public Infrastructure.However,this streamlining has been limited to unsecured consumer credit.Moving forward,we expect a shift towards similar experiences in secured lending and MSME credit.Lending-as-a-service(LaaS)providers will play a k

140、ey role by providing specialised stacks offering origination,management,underwriting,co-lending,and securitisation services as tailor-made solutions.16GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|TRENDS&OPPORTUNITIES SHAPING PAYMENTS&FINTECH IN APAC&EUSecuredLendingtobedigitisedthroughtech-drivens

141、olutionsLooking into 2024 and beyond,lenders are working towards the digitisation of secured lending,which remains largely manual.Some startups are leading this transformation by developing the necessary digital infrastructure,while established lenders are turning to tech-driven solutions to transfo

142、rm this traditionally manual and expensive process.The digitisation of secured lending is expected to accelerate,driven by innovations such as digitisation of land records and AI&smart contracts and risk assessment for quicker processing.ThesurgeindemandforMSMElendingwillbefulfilledthroughcompletely

143、digitalchannelsTo meet the increasing demand for credit,the MSME lending landscape in India is transforming.Digital solutions are expected to streamline the process and enhance access to credit by leveraging data from GST filings,e-invoicing,and Account Aggregator networks,to propel credit growth.Di

144、gital channels are anticipated to replicate the success seen in consumer lending,providing MSMEs with innovative lending options to reduce manual interventions and operating costs.Additionally,the integration with the Open Network for Digital Commerce(ONDC)is expected to boost opportunities for smal

145、l businesses,and amplify e-commerce financing.Segment-specificusecaseswillbedrivenbyfull-stackLending-as-a-service(LaaS)providersLaaS providers are gaining traction in the market due to their core offerings of faster deployment,increased adaptability,and plug-and-play solutions.These LaaS providers

146、are leveraging the latest technology to provide end-to-end solutions from origination to collections.As new use cases of embedded lending emerge,new and incumbent LaaS platforms will increasingly develop tailor-made solutions for these segment-specific use cases.In summaryIndias fintech sector is ra

147、pidly evolving due to technological advances,regulatory support,and market demand,leading to more accessible,efficient,and secure financial services.The shift towards B2B and cross-border digital payments,along with more digitised lending,promises enhanced services for consumers and businesses alike

148、.This progress is positioning India as a global fintech frontrunner and a benchmark for financial innovation worldwide.TheDigitalFifth is Asias first Fintech and Digital Finance Consulting&Advisory firm,driving change in the fintech landscape as an integral part of the ecosystem.They provide special

149、ised consulting services to the BFSI sector,including digital and Open Banking advisory,startup guidance,technical due diligence,and security and compliance In 2024,A2A payments in Europe are evolving with trends like instant payments and digital wallets,notably EPIs wero.Regulatory shifts and deman

150、d for real-time transactions promise user-friendly solutions in the next five years.A2A payments aim to overcome existing inefficiencies,offering secure,transparent transactions and direct integration with bank accounts for enhanced efficiency.The future sees A2A payments as a viable alternative,add

151、ressing all payment needs,fostering inclusivity,and transforming the European financial landscape with integrated,user-centric services.EPICompanyThe Evolution of A2A Payments in Europe18GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|THE EVOLUTION OF A2A PAYMENTS IN EUROPEWhat are the current key tr

152、ends shaping A2A payments in Europe,and how do these trends present opportunities for businesses and consumers?LudovicFrancesconi:I believe that the year 2024 will likely become a transformative phase in A2A payments in Europe,predominantly influenced by two significant trends:instant payments and w

153、allets.This phase would obviously include the coming launch of EPIs digital wallet solution,wero.The evolution of these trends is expected to be further catalysed by emerging regulations like the instant payment regulation and PSD3,fostering a dynamic Open Banking and Open Finance landscape.A main p

154、romise for consumers and merchants is the enablement of new features,enhancing and enriching the commerce experience for both businesses and consumers.The rapid adoption of instant payments across Europe signifies a shift towards more efficient,real-time financial transactions.This shift aligns with

155、 the growing demand for immediacy,control,and accessibility in the digital age,in the difficult economic context we know.I believe that the enablement of instant payments in the account-based payments infrastructure paves the way for bank-driven payment methods,delivering maximal security and trust

156、in payment transactions.In the next five years,we expect these trends to lead to more integrated,user-friendly payment solutions across Europe,substantially impacting the financial landscape.European Payments Initiative(EPI)LudovicFrancesconiandFabianMansfeldfromEPICompanydiscussthekeytrendsshapingA

157、2ApaymentsinEurope,opportunities,newusecases,andthefutureoutlook.LudovicFrancesconi is Chief Member and Strategy Officer at EPI Company,in charge of Member relations and development,as well as corporate strategy.Previously,he was Head of Marketing and Innovation at Cartes Bancaires CB,the leading do

158、mestic payment scheme in Europe,in charge of product and innovation.Ludovic Francesconi Chief Member and Strategy Officer EPI CompanyFabianMansfeld is a member of the leadership team at EPI Company where he holds responsibilities for developing the acceptance market strategy,managing partnerships an

159、d pricing strategies.Previously,he served as Managing Director in the Cash Management Strategy Office at Deutsche Bank.Subsequently,he was seconded directly into EPI to provide support in product development,ecommerce,and market positioning.Fabian Mansfeld Chief Acceptance Market Officer EPI Company

160、 The true power of A2A payments lies in its ability to address all payment use cases and offer added-value services and conveniences that existing systems cannot provide.19GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|THE EVOLUTION OF A2A PAYMENTS IN EUROPECan you explore the emerging use cases for

161、 A2A payments in the European landscape,with a specific focus on unmet payment needs in both the C2B and B2B sectors?(by identifying features currently lacking in the existing A2A and card payment landscapes)FabianMansfeld:I think the current A2A payment landscape in Europe is characterised not by a

162、 lack of use cases but by the need to overcome inefficiencies and limitations of existing payment infrastructures.These infrastructures,some dating back over several decades,have not kept pace with the digital transformation,as they were built for a totally different commerce reality.We see that acr

163、oss all payment scenarios,the emphasis is shifting towards leveraging digital payment infrastructure more effectively,bypassing intermediate steps.This approach not only enhances efficiency but also augments the security and transparency of transactions.It will also lead to the direct integration of

164、 additional services with bank accounts,making them more independent and versatile.To realise this,A2A payments must match the convenience and functionality of existing payment methods and then extend beyond them by linking additional services directly to the consumers bank accounts.This evolution w

165、ill address unmet needs by providing seamless,secure,and transparent financial transactions.Looking forward,we foresee a landscape where A2A payments become as ubiquitous and even more versatile as traditional methods,fostering a more inclusive and efficient financial ecosystem in Europe.Looking tow

166、ards the future,what is the outlook for A2A payments in Europe,and what major shifts or innovations do you anticipate in this space?LudovicFrancesconi:The future of A2A payments in Europe appears promising,poised for significant growth in the coming years.The focus,I think,will likely be on developi

167、ng solutions that not only match the capabilities of current payment systems but also offer enhanced services linked to consumers bank accounts.In the near term,A2A payments are set to emerge as a viable alternative to existing digital and card payment methods.However,they are unlikely to render the

168、se traditional systems obsolete due to the established usage pattern in the current payment landscape and long-lasting consumer habits.The real potential of A2A lies in its ability to address all payment use cases and offer added-value services and conveniences that existing systems cannot provide.I

169、t is also worth highlighting that the digitisation of assets also goes way beyond monetary assets.Bank accounts could be obvious custody for other types of digital assets,and a bank-driven digital wallet solution could be the way to interact with these assets securely.Also,the growth trajectory for

170、A2A payments will likely involve a proliferation of diverse solutions catering to specific needs across B2C and B2B sectors.However,as with any rapidly evolving market,this expansion will eventually lead to consolidation,reflecting the inherent scale-based nature of the payment industry.We anticipat

171、e that A2A payments and wero will significantly transform the European payments landscape,offering more integrated,user-centric financial services and strengthening the overall efficiency and security of the financial systems.TheEuropeanPaymentsInitiative(EPI)is an initiative backed by 16 European b

172、anks and merchant service providers to progressively build a payment solution tailored for Europe.EPI leverages the instant account-to-account payments infrastructure available in Europe to improve efficiency and remove intermediaries in the payment flow.It aims at enabling next-generation payments

173、for consumers and merchants in Europe across all types of retail transactions via a wallet.EPI will initially support person-to-person(P2P)and person-to-professional(P2Pro)payments,followed by online and mobile shopping payments and then point-of-sale payments while combining them with attractive va

174、lue-added services in the future.epicompany.euAnyone who sends money internationally will know there can be significant issues with cross-border payments.Complex and fragmented correspondent banking arrangements result in cross-border payments being slow and expensive.Consequently,central banks are

175、wondering whether CBDC systems,designed from the ground up,have the potential to provide a better solution.StevePannifer,Managing Director,Consult HyperionCross-Border Payments:Unravelling Trends in B2B,B2C,and C2B Transactions21GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|CROSS-BORDER PAYMENTS:TR

176、ENDS IN B2B,B2C&C2B TRANSACTIONSMultinational companies often grapple with complex travel and expense management issues in todays global market.Can you elaborate on their key challenge?The primary hurdle in effectively managing travel and expenses is achieving comprehensive visibility and control.Th

177、is challenge stems from a need for integrated systems to monitor employee spending across various regions and departments.Traditional methods,like manual expense reporting,are fraught with inefficiencies lost receipts,data entry errors,and the cumbersome process of collecting reports.Implementing an

178、 automated,unified travel and expense management system is essential to counter these issues.A modern system with integrated virtual and physical corporate cards provides real-time insight into expenses.In the dynamic landscape of business travel,how are companies balancing effective cost control an

179、d meeting the increasing demands and expectations of their business travellers?Recent research,including a travel study by Mesh Payments,reveals a significant disconnect between corporate travel and expense management.Notably,78%of employees find the process of expense reporting both confusing and t

180、ime-consuming.Companies face multifaceted challenges in adapting their travel policies for regional,and the complexities of international travel,particularly in a decentralised work environment.To address these issues,many companies are shifting towards a traveller-centric approach.This strategy foc

181、uses on offering more flexibility and choices to business travellers,leveraging data analytics for more efficient spending,and forging personalised agreements with travel providers.These measures aim to enhance the travel experience for employees and ensure rigorous cost management.Last summer,you l

182、aunched Meshs Travel Management Solution at a big business travel industry show,Global Business Travel Association(GBTA)?Why does the world need another T&E solution?The pandemic significantly accelerated the adoption of digital solutions in travel and expense management.Companies are more distribut

183、ed across geographies than ever before,focusing more on flexible travel policies,real-time expense tracking,and ensuring employee safety and well-being during travel.Mesh PaymentsMeshPaymentsco-founderandCEO,OdedZehavi,discussestheirnewTravelManagementsolutionandthechangingbusinesstravellandscapein2

184、024.Mesh gives companies the flexibility to work with multiple TMCs,the combination of both off and online booking all with integrated corporate cards and expense management automation.OdedZehavi is the co-founder and CEO of the spend and travel management platform Mesh Payments.Previously,Oded serv

185、ed as Payoneers Chief Revenue Officer and led the launch of PayPal Middle East and Africa.He has extensive experience in leadership roles at various technology,banking,and software companies,and serves as a board member or advisor to several fintech companies.Oded Zehavi Co-Founder&CEO Mesh Payments

186、22GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|CROSS-BORDER PAYMENTS:TRENDS IN B2B,B2C&C2B TRANSACTIONSAt the same time,few companies and travel managers would say that any travel solution or company works seamlessly across every region or country;there are just too many local needs and nuances.So

187、,we stood back and saw we could solve this holistically for the first time,giving companies the flexibility to work with multiple TMCs and a combination of both off and online booking,all with the unmatched convenience and visibility of integrated corporate cards and expense management automation.Th

188、ose were the driving factors behind the launch of Mesh Travel Management.Do you believe that the winning combination lies in TMC flexibility,integrated cards,and expense automation?Yes,it is an irresistible combination and one that we uniquely offer globally.Looking towards the future,how do you ant

189、icipate the travel and expense(T&E)management landscape evolving for companies?What technological innovations and strategic shifts do you foresee playing a pivotal role in this evolution?The future of T&E management is likely to be shaped by a holistic,integrated approach addressing the entire spect

190、rum of T&E processes.Companies will focus on streamlining everything from approval workflows and policy adherence to booking,reporting,and data analysis.The key to resolving many existing challenges lies in consolidating these facets into a centralised,adaptable T&E platform that integrates multiple

191、 partners and channels.This shift promises to eliminate disjointed processes,reduce data silos,alleviate employee frustration,and minimise manual labour.How does generative AI fit into your travel and expense management vision?Artificial intelligence and machine learning are significant in automatin

192、g expense reporting and policy compliance.Theres also a growing emphasis on integrating travel booking and expense management systems for a seamless user experience.Of course,weve been investing in AI and automation since the get-go to help streamline the user experience.Still,finance is all about a

193、ccuracy,so generative AI plays less of a role in finance operations.Why?Because financial operations involve complex regulatory and compliance requirements,any automated decisions need to be transparent and explainable.Generative AI,in its current form,often operates as a black box,making it challen

194、ging to understand how certain conclusions or recommendations are reached.What else do you think will shape business travel in 2024?The resurgence of in-person meetings and events is driving a solid recovery in business travel.Another trend is the rise of super commuting,where employees hired in loc

195、ations far from their designated offices or those who have moved away from big cities now travel more frequently to their company headquarters,often internationally.Overall,I see the business travel landscape in 2024 characterised by a blend of recovery,technological advancement(with the flexibility

196、 to accommodate not just employees,but guest and contractor travel needs),and a shift toward more sustainable and flexible travel practices.The way companies travel will never be the same.It is onward and upward from here.MeshPayments is the spend and travel management platform purpose-built for mod

197、ern global enterprises with multi-entity and currency support,global reimbursements,and the flexibility to use one or more preferred travel management companies.Mesh is the only leading US spend management vendor that can manage spending for companies with or without a US Steve is an esteemed digita

198、l identity expert,advising banks,governments,and tech firms on governance,architecture,and implementation.Hes contributed to various digital identity initiatives worldwide and co-authored guides for the DIACC and the EPA.Steve is advising Central Banks on various aspects of CBDC including governance

199、,privacy and technology.Steve Pannifer Managing Director Consult Hyperion23GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|CROSS-BORDER PAYMENTS:TRENDS IN B2B,B2C&C2B TRANSACTIONSCentral banks around the world have spent several years exploring retail CBDC.Whilst some countries have moved quickly int

200、o pilots,the majority are taking their time,carefully developing their thinking and plans.This is completely understandable.The introduction of a digital form of cash has the potential to be disruptive to the banking sector and so any central bank will want to be sure that any disruption intended or

201、 otherwise is well managed.The ECB has recently moved into what it describes as a preparationphase.Over the next two years,it will be finalising the digital euro rulebook,selecting providers that could develop a digital euro platform and infrastructure,continuing with its experimentation,and engagin

202、g with the public.This does not mean that a digital euro is inevitable.In two years the governing council will then need to decide whether to move to the next stages of preparation.As this work continues during 2024,we expect three particular areas to continue to be important:Support for offline,Pro

203、grammability,and Support for cross border.As we explain below these are areas where a CBDC can differentiate itself from the payment methods we have today.Offline paymentsResearch conducted by the BISInnovationHubNordicCentre suggests that around half of central banks believe it is essential for CBD

204、C systems to support offline payments,with the other half viewing it as advantageous.Reasons cited in support of offline payments include:Resilience,which is a clear need because,like physical cash,CBDC will need to work even when other services fail.Inclusion,which is a particular concern in locati

205、ons and contexts where people may not have access to the internet.Privacy,allowing people to use money without the fear of surveillance.There will of course be limitations here CBDCs also need to be resistant to exploitation for nefarious purposes.A less cited reason but one that we believe could ou

206、tweigh them all is scalability and performance.Depending on the design,there is a real risk of CBDC ledgers becoming a bottleneck,which an offline capability should be able to alleviate.BISalsoresearched the technologies that could be used to deliver offline capabilities.Whilst including offline as

207、part of the design of a CBDC system may increase the complexity of the system,it does not necessarily mean that the total cost of ownership will be higher.Having an offline fallback mechanism may reduce the operational demands on the CBDC ledger,especially during peaks,lowering the cost and increasi

208、ng the availability of the CBDC overall.Retail CBDC TrendsConsult Hyperion24GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|CROSS-BORDER PAYMENTS:TRENDS IN B2B,B2C&C2B TRANSACTIONSProgrammabilityMany payments today are automated.For example,batch payment processing,standing orders,and direct debits a

209、ll allow payments to be performed automatically without human intervention.These payments are not however intelligent or dynamic they simply execute according to how they are configured in the banking or payment systems.Cryptocurrencies introduced the idea of smart contracts programmed business logi

210、c that can either be executed when a payment transaction is performed or can potentially control when a payment occurs based on pre-defined conditions.Many future use cases such as in DeFi and IoT payments will require intelligent payments,so it is hardly surprising that programmability is one of th

211、e features being considered by central banks,given that like physical money it should be possible to use CBDC anywhere.There are still some big questions to be answered on programmability including technically how it will work,who will be able to program the CBDC and how will programmability be gove

212、rned to ensure the capability is not misused.In the summer,MITpublished a framework for programmability in digital currency.This helpfully distils the differing views on programmability and explores these questions.Cross-border paymentsAnyone who sends money internationally will know there can be si

213、gnificant issues with cross-border payments.Complex and fragmented correspondent banking arrangements result in cross-border payments being slow and expensive.Consequently central banks are wondering whether CBDC systems,designed from the ground up,have the potential to provide a better solution.Whi

214、lst central banks are collaborating extensively on the topic of CBDC,ultimately each central bank will be responsible for establishing a CBDC system meeting its local requirements.Through collaboration patterns are emerging,such as the widely recognised two-tier model.Over time,there may be technica

215、l standards that central banks can align with as a minimum,you can expect central banks to try to align with ISO 20022 messaging.These will help to ensure interoperability but will that be enough to enable cross-border CBDC payments?Several experiments,such as theIcebreaker and mBridge,have already

216、been conducted exploring how cross-border CBDC payments may be realised.These have looked at ways of shortening the long value chains that can exist in cross-border payments today.That will certainly help but this only begins to address the full range of potential issues with cross-border payments i

217、ncluding governance,compliance,funding,foreign exchange,and so on.Everything elseDesigning a CBDC involves analysis of legal,commercial,and technical factors.It needs to be done in collaboration with the government,business,and society.There are complex issues such as privacy that need to be worked

218、through.And all that in a fast-moving landscape with parallel initiatives such as Open Banking and open finance disrupting the payments landscape.Central banks are playing a long game.They are concerned with creating the conditions for economies to flourish.Determining if,how,and when CBDC can help

219、with that is something they will take their time over.ConsultHyperion is a UK and US-based consultancy specialising in secure electronic transactions,with over 30 years of experience.They help global organisations take advantage of new technologies and regulatory changes in payments,identity,and fut

220、ure mobility.They design systems,offer digital innovation,and unblock technical issues,while their in-house Hyperlab team quickly prototypes concepts and delivers secure MirelaCiobanu is Lead Editor at The Paypers,specialising in the Banking and Fintech domain.With a keen eye for industry trends,she

221、 is constantly on the lookout for the latest developments in digital assets,regtech,payment innovation,and fraud prevention.Mirela is particularly passionate about crypto,blockchain,DeFi,and fincrime investigations,and is a strong advocate for online data privacy and protection.As a skilled writer,M

222、irela strives to deliver accurate and informative insights to her readers,always in pursuit of the most compelling version of the truth.Connect with Mirela on LinkedIn or reach out via email at .Mirela Ciobanu Lead Editor The Paypers25GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|CROSS-BORDER PAYME

223、NTS:TRENDS IN B2B,B2C&C2B TRANSACTIONSAs the calendar turns,I make it a ritual to reflect on the past year,extracting valuable insights to inform my approach for the new year.Just like individuals usually set resolutions,businesses,especially those operating in the realm of cross-border payments,scr

224、utinise the trends of the previous year and the ones that are expected to further impact the industry in the year ahead.The globalisation of trade,capital,and migration flows have influenced a notable increase in cross-border payments for the last decades.GlobalpaymentsaresettoreachUSD290trillionby2

225、030 from the current USD 190 trillion in 2023.Despite this remarkable expansion,cross-border payments continue to be costly,slow,and face insufficient transparency and accessibility.Corporate fees for international payments average around 1.5%,while remittances canincurfeesashighas6.3%,with the time

226、 it takes for these payments to reach their recipients extending to several days.Other challenges in cross-border payments encompass compliance intricacies,varying international regulations,and diverse AML requirements.In October 2020,G20 Finance Ministers and Central Bank Governors endorsed a Roadm

227、ap for Enhancing Cross-Border Payments.The G20-led initiative is supported by the World Bank,the International Monetary Fund(IMF),and about 40 central banks.G20 nations are collaboratively addressing cross-border payment issues.The G20s efforts(as outlined in the G20RoadmapforEnhancingCross-borderPa

228、yments)aim to achieve goals such as shortening transaction chains,reducing overall costs,and enhancing transparency and speed in payments.The focus of G20 nations actions includes:1.Paymentsystemsinteroperabilityandextension:This involves improving payment system interoperability and interlinking,ex

229、tending the operating hours of Real-Time Gross Settlement(RTGS)systems,and revising payment system access policies.2.Legal,regulatory,andsupervisoryframeworks:G20 nations aim to promote an efficient legal,regulatory,and supervisory environment for cross-border payments while ensuring safety,efficien

230、cy,and integrity.3.Dataexchangeandmessagestandardisation:Efforts are directed towards facilitating cross-border data exchange and increasing the use of standardised message formats for cross-border payments.Enhancing and harmonising the data carried in most cross-border payment messages can support

231、increased straight-through processing,automated reconciliation,and more efficient Anti-Money Laundering/Combating the Financing of Terrorism(AML/CFT)checks.Navigating the Evolving Landscape of Cross-Border Payments:Top Four Trends to Watch in 2024The Paypers26GLOBAL PAYMENTS AND FINTECH TRENDS REPOR

232、T 2024|CROSS-BORDER PAYMENTS:TRENDS IN B2B,B2C&C2B TRANSACTIONSA big trend emerging around cross-border payments is real-timepayments.In 2023,over 70 countries endorsed real-time payments and accordingtoACIWorldwide,there were 195 billion transactions in 2022,marking a remarkable 63%year-on-year gro

233、wth.India(UPI)leads in transaction volume,accounting for 89.5 billion transactions.Other notable initiatives include PIX in Brazil,SCT Inst in the EU,theFednow in the US,and various real-time payment schemes in China,Thailand,Singapore,and South Korea.Real-time payments play a rapidly growing role i

234、n the payments industry,and by starting to work together,they deliver on the G20 agenda,fostering greater interoperability,common standards and infrastructure across diverse payment systems and networks.Amidst these advancements,global conflicts emerged,and a notable shift was observed as entities s

235、ought to reduce dependency on the dollar and monopolistic payment schemes or structures.With these dynamics in play,we try to anticipate the trajectory of cross-border payments in 2024 by elaborating on four trends to watch.1.Increasednumberofinitiativesfocusingonenablingreal-time,interoperable,andc

236、ost-effectivecross-borderpaymentsFaster cross-border payments are important.Waitingforfundstranslates into less financial control over market volatility(47%)and increased manual processes and reconciliation(40%).For instance,businessesinAPACreport it takes between five and ten days to receive or sen

237、d cross-border payments.Other hurdles in cross-border payments involve navigating complex compliance requirements,diverse international regulations,varied AML(Anti-Money Laundering)demands,and a lack of transparency.Additionally,disparities in data formats and standards further complicate the landsc

238、ape.The adoption of the ISO20022 international standard is regarded as a pivotal step in addressing some of these challenges.Also SWIFTisactivelyaddressingtheseissues;in 2023,they reported that 89%of transactions processed on their network reached recipient banks within an hour.MarianneDemarchi,Chie

239、fExecutiveofSwiftinEurope,emphasised the importance of interoperability in SWIFTs efforts to realise the strategy of instant and frictionless payments for everyone.She highlighted its crucial role in aligning with the G20s objectives for cross-border payments.In Europe,theECBandSverigesRiksbank are

240、actively investigating potential solutions for facilitating cross-currency instant payments involving the euro and the Swedish krona.Furthermore,the EPCs One-Leg Out Instant Credit Transfer(OCT Inst)scheme,where PSPs in SEPA can process incoming and outgoing international credit transfers through hi

241、ghly automated funds transfer systems available in the Euro Leg and via similar systems in the respective non-Euro Leg countries or jurisdictions,is a positive stride for Europe,foreseeing improved user experiences not only for payers within Europe but globally as well.In APAC,real-time payments are

242、 also growing rapidly.Between 2022 and 2023,central bank governors from Singapore,Indonesia,Malaysia,the Philippines,Thailand,and Vietnam pledged cross-borderinteroperabilityforreal-timepaymentsystems,fostering regional economic recovery.Moreover,with SingaporesPayNow system linked to many other RTP

243、 systems in APAC via Indias UnitedPaymentsInterface(UPI),Malaysias DuitNow,and Thailands PromptPay,we expect to see a huge increase in cross-border commerce in the APAC region fuelled by real-time payments.In addition to real-time payments,QRcodepaymentshaveemergedasasignificantelectronicpaymentmeth

244、odinSoutheastAsia.This has spurred collaborative efforts among countries in the region to facilitate QR code usage for cross-border payments.This initiative lays the groundwork for citizens to engage in cross-border transactions using QR code payments,often with reduced or eliminated fees and more f

245、avourable currency conversion rates compared to major credit card companies.27GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|CROSS-BORDER PAYMENTS:TRENDS IN B2B,B2C&C2B TRANSACTIONSAll six major economies of ASEAN have entered into bilateral agreements or memoranda of understanding(MoUs)to establish

246、 QR code payment linkages with other ASEAN Member States.Notable examples include Indonesia and Thailand implementing a QR code payment linkage in 2022,while Singapore established links with Thailand in 2021 and initiated a pilot with Indonesia in 2022.The policies and commitments made by ASEAN memb

247、er state and regulators serve as a valuable case study for regions aiming to achieve financial integration and cooperation through digital payment initiatives.The global community can draw insights from fostering effective collaboration,ensuring financial services accessibility for all to promote fi

248、nancial inclusion,and designing scalable and adaptable payment system infrastructure capable of handling increasing transaction volumes and future technological advancements.The demand for real-time payments is shaping the evolution of cross-border transactions.In 2024,we anticipate a significant pu

249、sh toward faster settlement processes,eliminating the traditional delays associated with cross-border transfers and high costs.2.Moreandmorefintechstobuildpaymentinfrastructureforreal-timecross-borderpaymentsOver the past decade,a new wave of fintech companies has emerged to address the limitations

250、of conventional cross-border payment and settlement systems(e.g.card networks,banking networks).Some are pioneering innovations atop existing payment networks(Rapyd,Thunes,Terrapay,NIUM,etc.),while others are harnessing cutting-edge technologies like blockchain(Ripple,BVNK,Stellar,Circle,etc.)to con

251、struct an entirely independent payment infrastructure.Businesses and people need to move money internationally because they want to do trade cross-borders,travel,remittances or business payouts,or manage corporate treasury flows.Consider a scenario where a customer makes a purchase from an internati

252、onal website.Ideally,the customer prefers to conduct the transaction in their local currency,while the website aims to settle the funds in its own currency.Similarly,businesses often encounter the need for cross-border payments.This includes making payments to individuals in different countries,like

253、 disbursing wages,settling insurance claims,and processing refunds.Also,businesses engage in international transactions with third parties involved in their operations,commonly referred to as invoice payments.These payments encompass various aspects,from commission payouts to sellers on a marketplac

254、e to fees for agencies and freelance staff.By bridging cross-border payments with local wallets and payment methods,payment service providers like Rapyd,Thunes,Terrapay,and NIUM enable seamless transactions for merchants,travellers,and the gig economy that are operating in a global environment.For i

255、nstance,Rapyd enables businesses to access a variety of payment capabilities,including card acquiring,e-wallets,bank transfers,and cash payments.Using its global payments infrastructure,the fintech allows businesses to tap into new worldwide customer bases and accept payments in their preferred meth

256、ods and currencies.As we venture into 2024,these providers hold significant potential to simplify cross-border transactions,fostering enhanced interoperability.Distributedledgertechnology(DLT)like blockchains and digital assets like cryptocurrencies,stablecoins,or tokens are an effective alternative

257、 to make cross-border payments faster,safer,and cheaper.Blockchain,by eliminating the need for third parties,enables faster and more secure financial transactions.Integrating blockchain into banks could result in nearly instantaneous processing times for consumer transactions.This is a stark contras

258、t to traditional settlement and clearing processes that can take several days,posing risks and incurring costs for banks.Blockchains ability to expedite fund exchanges between institutions contributes to increased efficiency and security in the financial services landscape.28GLOBAL PAYMENTS AND FINT

259、ECH TRENDS REPORT 2024|CROSS-BORDER PAYMENTS:TRENDS IN B2B,B2C&C2B TRANSACTIONSCompanies such as Ripple or Stellar are using solely distributed ledger technology(DLT)to enable businesses and consumers to conduct global transactions seamlessly.Businesses and banks are using Ripples payment network Ri

260、ppleNet,which relies on blockchain to transfer funds instantly.RippleNet also provides its clients with liquidity service with the help of cryptocurrency,XPR,that serves as a link between two currencies.These companies offer diverse capabilities,from enabling payments and helping with treasury manag

261、ement to facilitating digital asset transactions without disrupting treasury operations or constructing private ledgers for issuing stablecoins and central bank digital currencies(CBDCs).Others like BVNK and Circle are merging blockchains with traditional payment infrastructure for a faster,safer,an

262、d more efficient way to send,spend,and exchange money around the globe.They are part of global settlement networks and thus offer cross-border payments and currency exchange(including fiat to fiat,crypto to fiat,fiat to crypto,and crypto to crypto).For instance,BVNKs customers can accept cryptocurre

263、ncy from their customers without having to hold it on their balance sheet and embed cryptocurrency and stablecoin solutions into their products and services without needing to become regulated.Because cross-border payments play a crucial role for international businesses,2024 will see a surge in sol

264、utions and offers that enable merchants,travellers,and the gig economy to transact seamlessly.3.Centralbankdigitalcurrencies(CBDCs)tobecomeagame-changerforcross-borderpaymentsinteroperabilityNo matter the lingo,digital assets and digital currencies are real and are the future.According to a 2022 BIS

265、 survey,93%ofcentralbanksareactivelyexploringCBDCs,with projects transitioning from experimental phases to pilot trials.CBDCs can be broadly classified into wholesaleCBDCs and retailCBDCs.WholesaleCBDCs are related to wholesale payments that involve high-value transactions.The coordination of nation

266、al wholesale CBDCs designs could lead to cross-border payments efficiencies by offering a secure settlement,reducing costly and lengthy intermediation chains throughout the payment process,and eliminating operating hour mismatches by being accessible 24/7.From a geopolitical perspective,the developm

267、ent of CBDCscouldalsohelpreducethedependencyofsomeglobaleconomiesonthedollar.The growing interoperability of national CBDCs is poised to diminish dependence on the USD as an intermediary currency for executing exchanges between different currency pairs.RetailCBDCs are related to retail payments and

268、encompass low-value transactions conducted between individual users and businesses.AccordingtoBIS,retail CBDCs could promote financialinclusion if this goal is included in the design from the get-go.This means promoting innovation in the two-tiered financial system(eg allowing for novel non-bank pay

269、ment service providers),offering a robust and low-cost public sector technological basis(with novel interfaces and offline payments),facilitating enrolment and education(via simplified due diligence and electronic KYC)and fostering interoperability(both domestically and across borders).CBDCs can bec

270、ome a game-changer in cross-border payments.These digital versions of fiat currencies offer several advantages,including real-time settlement,lower transaction costs,and improved transparency.29GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|CROSS-BORDER PAYMENTS:TRENDS IN B2B,B2C&C2B TRANSACTIONS4.C

271、omplianceandsecuritytakecentrestageCross-border transactions are a prime target for cyber-criminal groups due to their inherent opaqueness and lack of standardisation.The absence of a unified regulatory body,coupled with varying regulations and security policies in each countrys banking system,creat

272、es vulnerabilities that organised criminals exploit.Fraudulent activities,money laundering,terrorist financing,and cybercrime pose significant risks to businesses and financial institutions involved in cross-border payments.Also,differences in policies and regulatory frameworks across jurisdictions

273、can be a challenge for cross-border payments.There are efforts to explore how regulations can be harmonised;for instance,the BIS Innovation Hub Singapore Centre is exploring the feasibility of encoding jurisdiction-specific policy and regulatory requirements into a common protocol for cross-border u

274、se cases via ProjectMandala.Adhering to evolving regulations,especially those related to anti-moneylaundering(AML)andknowyourcustomer(KYC)procedures,will be crucial in 2024.Sparked by geopolitics and the ongoing conflicts across the globe(Russia Ukraine,possibly China Taiwan),paying attention to san

275、ctionsscreening,UBOs,adversemediadata,andPEPlists will become the new norm for businesses operating in a global environment.To help them in this endeavour,compliance departments will focus both on theuseoftechnology(ArtificialIntelligence(AI)andMachineLearning(ML)andhumanexpertise.AI and ML can anal

276、yse huge amounts of transactional data in real-time to enhance payment security and compliance.As businesses expand their global operations,they must stay abreast of the latest regulations and implement robust security measures to protect their customer data/transactions and ensure adherence to regu

277、latory requirements.As we embark on a new year,the trends shaping cross-border payments reflect a commitment to innovation,security,and regulatory adherence.The convergence of accelerated demand for faster settlements,the rise of technology providers that bridge cross-border payments with local wall

278、ets and payment methods,digital currencies(especially CBDCs)exploration,and enhanced security measures signifies a dynamic and forward-looking industry.As 2024 unfolds,the industry will continue to navigate these trends,bringing us closer to a future where cross-border payments are not just transact

279、ions but seamless experiences.When it comes to product innovation,lending looks to be one of the most important use cases for Open Banking this year,through giving access to new forms of insights to support application and underwriting processes,as well as becoming part of a bigger alternative data

280、landscape for consumer-permissioned data in lending.KieranHines,Principal Analyst,CelentOpen Finance and Embedded Finance:Revolutionising Financial ServicesKieran is a Principal Analyst in Celents Banking practice.His research focuses on the impact of technology-driven change in both the retail and

281、corporate banking sectors,with an emphasis on the role that Open Banking,embedded finance,data and analytics,and cloud technologies have in transforming customer propositions and the long-term value chain in banking.An experienced analyst with close to 20 years in the industry,Kieran works closely w

282、ith banks,vendors,and payment processors on their technology and business strategies.Kieran Hines Principal Analyst Celent31GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|OPEN FINANCE AND EMBEDDED FINANCESadly,I dont have any supernatural powers when it comes to predicting the future and I believe t

283、he same is true of my colleagues at Celent.Nevertheless,one of the highlights in our research calendar is our annual get-together to discuss the trends to watch in the year ahead.This forms the basis of our Previsory report,in which we set out the themes and trends we expect to drive the technology

284、and product development agenda for the industry.This includes some of the latest viewpoints from the Celent Technology Insight and Strategy Survey(CTISS),in which we survey 228 retail bank executives about their IT investment plans for 2023/2024.Based on this research,here are three trends to watch

285、in 2024.Trend 1:Banks will continue to invest in agilityLaying the foundations for greater agility is one of the standout technology themes of 2024.In the face of a challenging operating environment,many banks are focusing on how to be able to respond quickly to emerging product or customer-level op

286、portunities.This reflects the broader cultural change underway in the industry.The growth of the fintech sector has undoubtedly catalysed fresh thinking among incumbents about how best to approach technology investments,as well as software development and delivering product innovation.It has also le

287、d to new perspectives over what a truly modern technology stack both looks like and can enable.At a global level,57%of the banks responding to our latest survey cited delivering greater speed and agility as a top three strategic priority for their technology investments in 2023/2024.This is the sing

288、le biggest theme for the industry overall,ahead of considerations such as regulatory compliance,legacy modernisation and increasing operational efficiency.One standout theme within this is the growing focus on automation.While the concept of RPA is not new,there is a growing emphasis on“intelligent

289、automation”,which brings together the principles of RPA alongside AI technologies such as NLP,and machine learning.The aim here is to unlock value in workflows such as account opening to enhance customer experiences and reduce operational costs.This is high on the agenda for banks in all regions and

290、 is the single most important technology investment priority for the industry overall in 2023/2024.Also important this year is the growing interest in low code tools and interfaces for product and other mission-critical applications.Capacity limitations in the technology function can result in produ

291、ct improvement projects failing to be approved,being de-scoped,or cancelled.In short,the opposite of agility.Across the industry,41%report that they are exploring use cases or experimenting with low code,while a further 31%have this is on their 2023/2024 roadmap.Three Retail Banking Technology Trend

292、s to Watch in 2024Celent32GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|OPEN FINANCE AND EMBEDDED FINANCETrend 2:A deepening focus on Open Banking,BaaS,and Embedded FinanceBanks are steadily growing their investments in the open ecosystem(Open Banking,BaaS,and Embedded Finance),with 75%sharing they

293、 have a clear strategy to engage in this space in the year ahead.Indeed,the focus has already pivoted from theory to practice for many banks,with 60%reporting that theyre now generating commercial gains from their open ecosystem activities.Looking more closely at open banking,the momentum in this ar

294、ea will continue to build.Many banks plan to grow their investments in this area,and further regulatory action will support the expansion of the broader ecosystem.Indeed,one of the big shifts in 2023 was the industry reaching a consensus over the need for regulators to be more active in reducing com

295、mon barriers such as incomplete market coverage,inconsistencies in interpreting standards,and points of friction in the user experience.Also important is the recognition of the need for the better alignment of costs and incentives across the value chain.In Embedded Finance,there is a growing underst

296、anding that succeeding in this space requires new thinking and new technology.Banks need to raise their game in managing partner relationships,particularly around compliance and risk,and should also explore a growing range of solutions aimed at helping scale embedded finance.Trend 3:Banks will conti

297、nue to experiment with Generative AINo review of whats ahead in 2024 would be complete without a reference to Generative AI.While it is still early days for the technology at enterprise level,particularly in a heavily regulated sector such as banking,the potential is certainly clear.This view shows

298、two themes from our survey.The first is the degree to which banks are currently experimenting with each technology or emerging business model.The second is a ranking showing which the industry expects will have the greatest impact in five years.Source:Celent Technology Insight and Strategy Survey 20

299、23Unsurprisingly,Generative AI tops the list in terms of experimentation and is seen as having a big future impact.Over 41%of banks currently looking at use cases or otherwise testing this technology,while a further 31%have projects on their 2023/2024 roadmap.The range of use cases in play is broad,

300、but there are already banks in the market that are live with the use of Generative AI to support a range of internal workflows in areas such as the contact centre and customer-facing agents.Time will tell if these predictions turn out to be accurate,but I hope to be invited back by the Paypers to re

301、view this again in early 2025!For over 20 years,Celent has helped senior executives make confident decisions around their technology strategies.We offer objective advice,backed by a database of thousands of solutions and award-winning global best practice use cases.With real-life domain expertise,we

302、 also guide you through the maze of emerging tech in the pursuit of value.We are part of the Oliver Wyman Group,a wholly-owned operating unit of Marsh McLVlad is a Senior Editor at The Paypers,working on the Banking&Fintech team.He uses his research,content,and people skills for all activities revol

303、ving around Open Banking,Open Finance,Embedded Finance,and more.Vlad has a degree in Biology and Molecular Genetics and an extensive background in creative writing.You can reach out to him on LinkedIn or email.Vlad Macovei Senior Editor The Paypers33GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|OPE

304、N FINANCE AND EMBEDDED FINANCEBeginning with PSD2s emergence on the financial stage,Open Banking allowed TPPs to use customer-allowed data to develop better financial products related to bank accounts,transactions,and payments.As the world faces new regulations that aim to introduce Open Banking and

305、 Open Finance to consumers,the new financial services paradigm will extend beyond traditional banking services.Service providers will access new consumer data pools,such as those created from investments,insurance,lending,and other financial instruments.From Open Banking and Open Finance to Open Dat

306、aMoving past Open Finance,we have seen countries drawing inspiration from the European Open Banking model,choosing distinct paths in opening up their financial data.Their approaches serve as compelling examples of the transformative potential of open data sharing,warranting closer examination by oth

307、er regions.While Open Banking and Open Finance are specific to the financial sector,the principles of openness,transparency,and data sharing are fundamental to both.Open Data,on the other hand,extends these principles to a wider range of information,including non-financial data.Open Data,as a broade

308、r concept,includes information beyond the financial sector.It encompasses data from various industries,government agencies,scientific research,and more.Open Datas core objective is fostering transparency,collaboration,and innovation through the unrestricted availability of diverse datasets to the pu

309、blic.Initiatives in Open Data aspire to facilitate the creation of novel applications,research endeavours,and insights spanning various domains.In the evolution of these concepts,its plausible that the principles of Open Data will continue to influence and shape how data is shared and utilised acros

310、s various sectors,including finance.The trends toward openness,interoperability,and collaboration are likely to persist,fostering a more connected and innovative environment for both financial and non-financial data.However,the specific trajectory and development of Open Data will depend on regulato

311、ry frameworks,technological advancements,and societal attitudes toward data sharing in the future.Open Data Regulatory Trends to Watch for in 2024The Paypers34GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|OPEN FINANCE AND EMBEDDED FINANCEEuropean data regulation for 2024 and beyondThe European Unio

312、n is pursuing a data strategy to create a unified market for data,facilitating its seamless movement across the EU and various sectors,benefiting businesses,researchers,and public administrations.On February 23,2022,the European Commission introduced the Data Act Proposal,aiming to establish standar

313、dized regulations ensuring fair data access and utilization.This proposal,following the Data Governance Act,is the second major initiative under the European data strategy,complementing existing frameworks like the GDPR,Free Flow of Non-Personal Data Regulation,and Open Data Directive.Future regulat

314、ions like the Digital Markets Act and Digital Services Act will further shape data rules.The Data Act,effectivesinceJanuary11,2024,is a cornerstone of the European data strategy,pivotal in advancing the Digital Decades goal of digital transformation.Complementing the Data Governance Act,it addresses

315、 beneficiary identification and value creation from data,promoting secure access across economic sectors and public interest areas.This legislation fosters a unified EU data market,ensuring equitable data access and distribution.As a cross-sectoral framework,it sets principles applicable across all

316、sectors,while future legislation is expected to align with these principles.Data privacy laws for 2024 in North America Data privacy legislation is making significant strides in the United States,with eight states passing laws in 2023,five of which are slated to take effect in 2024.These include the

317、 Montana Consumer Data Privacy Act(MTCDPA),Florida Digital Bill of Rights(FDBR),Texas Data Privacy and Security Act(TDPSA),Oregon Consumer Privacy Act(OCPA),and Delaware Personal Data Privacy Act(DPDPA).Currently,14 out of the 50 US states have implemented data privacy regulations,with 40 states pro

318、posing privacy legislation in 2023,indicating an increasing trend.UserCentrics anticipates that more states will join in 2024.Although progress has been made in data privacy legislation at the state level in the US,the implementation of comprehensive federal laws faces hurdles.However,heightened scr

319、utiny due to technological advancements like generative AI may stimulate broader federal legislation aimed at addressing data privacy issues.In Canada,the Digital Charter Implementation Act,2022(Bill C-27)is currently under review and may be enacted in 2024.This proposed legislation aims to introduc

320、e the Consumer Privacy Protection Act(CPPA),replacing the outdated PIPEDA regulation.Additionally,it entails the creation of the Personal Information and Data Protection Tribunal Act,which would establish an administrative tribunal tasked with supervising decisions made by Canadas Privacy Commission

321、er and enforcing penalties for violations of the CPPA.Furthermore,the Act addresses the growing impact of AI through the Artificial Intelligence and Data Act(AIDA),which advocates for a risk-based approach to regulating AI systems in trade and commerce,highlighting the significance of data privacy f

322、or consumers,as indicated by UserCentrics.The worlds legal approach to data privacy in 2024Privacy laws typically mandate organisations to establish a legal justification for processing personal data,which may include obtaining the individuals consent for such activities.The GDPR has heightened the

323、standards for obtaining valid consent,requiring separate consent for each processing activity instead of a blanket consent to the privacy policy.However,many countries,especially in Asia and Latin America,still heavily rely on consent as the primary basis for processing personal data,with provisions

324、 for consent withdrawal.Transparency and explicitness standards for valid consent have also been raised in line with GDPR requirements in many jurisdictions,Freshfieldsargues.35GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|OPEN FINANCE AND EMBEDDED FINANCENevertheless,several newly introduced or re

325、vised privacy laws have introduced more flexibility by incorporating GDPR-inspired legal grounds such as legitimate interest and processing necessary to fulfill contractual obligations with individuals.For instance,countries like Indonesia,Korea,India,the Philippines,and Thailand have adopted a comb

326、ination of these grounds alongside consent.In contrast,China and Vietnam still predominantly mandate obtaining individual consent in most cases.Similarly,many Latin American countries like Argentina and Uruguay require consent in most scenarios and lack GDPR-like provisions for processing personal d

327、ata without consent,despite aligning with EU privacy principles in other aspects of their privacy laws.In contrast,the UK and EU recognise consent as only one of the lawful bases for processing personal data,with consent often utilised for processing special category data or intrusive data processin

328、g.Singapore,since early 2021,has allowed processing based on deemed consent in a broader range of circumstances or legitimate interests.However,Singaporean law mandates organisations to conduct a specific Data Protection Impact Assessment(DPIA)when relying on either of these bases for processing,Fre

329、shfieldsconcludes.ConclusionIn 2024,global data privacy regulations evolve with the rise of Open Banking and Open Finance.While the EU leads with the Data Act,the US and Canada enact state and federal laws.Balancing consent-based models and alternative legal grounds for processing remains crucial in

330、 shaping future regulatory frameworks.36GLOBAL PAYMENTS AND FINTECH TRENDS REPORT 2024|OPEN FINANCE AND EMBEDDED FINANCEA whole year has passed since our previous update of the INNOPAY Open Banking Monitor,which means it is high time to take a new look at where the industry stands.This recent update

331、 covers the status quo of Open Banking globally,highlighting what steps banks have taken,which general trends can be identified that will shape the industrys future,and whether these have resulted in new and innovative features and best practices that demand close attention both now and in the futur

332、e.This analysis aims to offer insights into the current frontrunners,the newcomers,and the very latest API capabilities in a continuously evolving landscape.Figure 1 Open Banking MonitorThe Old Guard Are Embracing New OpportunitiesINNOPAYINNOPAYs MounaimCortet(Managing Director),JorgosTsovillis(Seni

333、or Consultant),and ThorbenPeter(Consultant)combine extensive,cross-industry experience in(re)defining business and operating models in Open Finance.They help financial institutions seize new value-creation opportunities throughout the Open Finance journey.Mounaim Cortet Managing PartnerINNOPAYThorben Peter Consultant INNOPAYJorgos TsovillisSenior ConsultantINNOPAY37GLOBAL PAYMENTS AND FINTECH TREN