TLDR:

The payments landscape in 2024 will be defined by several key trends and innovations. These include:

• Sustainability and the move to the cloud
• Real-time payments
• Artificial intelligence
• Cross-border payments
• Open banking
• ISO 20022

Organizations in the financial services industry are facing pressure to demonstrate their ESG credentials, and sustainability will no longer be overlooked as a trend. Cloud adoption is seen as a way to reduce carbon footprints, drive cost-efficiencies, and enable faster innovation in payments solutions.

Real-time payments continue to expand, even in highly developed markets, to meet customer expectations for accessibility, scalability, and performance. The ability to scale up or down according to demand is another driver for cloud adoption in this area.

Artificial intelligence is an important technology in the finance industry, but there is a need for transparency and the removal of bias within data. Regulators are focusing on areas such as fraud management and compliance to ensure explainability when using AI.

Cross-border payments are expanding, as new entrants like fintechs offer specialized services, simpler processes, and lower costs through technology and networks. Banks will need to collaborate and incorporate these service providers to maintain market share.

Open banking is driving collaboration among all players in the market. Whether it’s account or cash management, domestic clearings, bill payments, or person-to-person services, collaboration is essential for success. Open banking standards enforced by governments create opportunities for new entrants and incumbents to increase transaction volumes and revenues.

The rollout of ISO 20022 standards will drive systems change in global and local clearing markets. Banks will need to update their environments to support these standards for competitive success.