4 FinTech trends to keep an eye on in 2023

Compared to 2021, last year there was a slowdown in growth across many fintech sectors, including banking, insurtech and regtech. Despite this, Deloitte pegs the value of the fintech sector at $180 billion and predicts this will rise to $213 billion by 2024.

It is often in times of recession and economic stress that we see some of the best creativity. From Walt Disney to General Motors, Airbnb to Uber, many of today’s biggest businesses trace their origins to a time of economic turmoil. So, what innovations can we expect in the next twelve months? Well, I expect some notable developments, especially in the payments sector as the new year begins.

Transforming cross-border payments

Companies continue to prioritize optimizing internal processes and cutting costs even when communicating with customers and other businesses on a global scale. As part of a payment experience that meets the needs of global businesses and customers, new business models and innovative payment rails can enable cheaper and more efficient cross-border payments, meeting the industry’s need for efficient fund delivery.

Cross-border payments are key for international customers as 49% of customers in Poland admitted they would look elsewhere or abandon a purchase if they could not pay with a payment method of their choice. Our research highlighted that customers in many PayU regions shopped online from international retailers. In Poland in particular, the percentage was about twice as high as in the United States or Colombia for the number of consumers who bought products or services from abroad. While the European Single Market may have contributed to some of this difference, customers in Poland’s fast-growing e-commerce market show a strong interest in cross-border e-commerce.

The track ahead: toll rail innovation

The continuation of the toll rail transition will be a major topic of discussion. While many agree that using cryptocurrency and blockchain as payment rails has several advantages, only a small number of nations, financial institutions and regulators have adopted them. To promote confidence in the crypto industry and address the need for unified monitoring of regulatory compliance across crypto marketplaces around the world, regulation will also play a greater role going forward.

We already see examples of popular payment rails such as Single euro payment area (WATCH). SEPA allows customers to make cashless euro payments using direct debit or credit transfers, efficiently and securely, anywhere in the EU and several countries outside the EU. The aim of SEPA is to make cross-border payments seamless and cost-effective.

To make money flow more accessible, affordable and efficient for all, the fintech sector must continue to take the initiative. In light of this, the next global payment rails will enable businesses to create cutting-edge payment services and products that follow customers everywhere.

Keeps the consumer and payments safe

Payment methods, both traditional and completely new, are moving towards digitisation, and require extra security and fraud prevention online.

In fact, research shows that e-commerce alone lost approximately $41 billion globally in 2022 and is expected to grow to $48 billion by 2023.

Unsurprisingly, as payments continue to become more digitized and in turn more secure, businesses need to be able to identify challenges and opportunities to ensure they meet customer needs.
To ensure customers have a pleasant and secure online shopping experience, it is important to have a solid anti-fraud solution that complies with local laws and regulations and to use the latest security protocols (network tokenization, 3DS, secure fields).

Make payments visible

The fintech industry continues to drive transparency in its product offerings and services – especially in credit agreements. Lending has grown in importance with the economy where it is now, but at what cost? To protect customers from bottomless debt holes, innovative loan schemes must be enabled, but they must also be accountable and transparent.