Giesecke+Devrient: Payment Trends for 2023 – Beyond the Hype

Payments have evolved drastically over the past decade as the push for personalization and a personalized experience has grown to be a customer’s top priority. But simply adding a design to a physical card is not enough. Especially in the constantly digestible world we live in now. So what kind of trends are taking place?

Rüdiger Vogt payment manager 4.0, manages the business with fintechs, neobanks and payment aggregators at Giesecke+Devrient (G+D)sat down with The Fintech Times to give his view on payment trends in 2023.

Vogt’s mission at G+D is to make next-generation payment easy – globally. Vogt joined G+D in 2008 and held several management positions within international sales and product line management. Before that, he was VP for key account business, led strategic marketing and worked with product management in the semiconductor industry at Infineon Technologies an.d Qimonda in Germany and the USA.

Payment Trends for 2023 – Beyond the Hype

When does the hype become tangible? For me then the question was “Was it a mistake to buy Bitcoins?” became part of casual conversation at parties. And sometimes it’s hard to see through the hype. Let’s take a closer look at what we can actually expect in payment for 2023.

Authentic sustainability in payment

Issuers see the payment card as an important physical connection between the fintech (or the bank) and their customers. An eco-innovative card, for example made from ocean plastic material, is a symbol of change and should be part of the wider sustainability program that a fintech or bank offers its customers.

By combining physical cards with digital solutions, consumers are given the opportunity to take daily environmental actions themselves. Customers’ carbon and water footprints are calculated automatically via their banking app. Therefore, they can compensate for unavoidable emissions through effective carbon removal projects that the banks refer to.

Comfort in a safe way

Consumers like to store their card information with a merchant for instant online payments. This is in addition to recurring payments and subscription payments. While some consumers have security concerns, some are getting tired of updating expired cards that are registered regularly.

The solution only stores a client identifier with the merchant, and then each transaction has a cryptogram or token that is generated using a larger payment scheme via a Token Service Provider. This reduces rejected transactions and ensures an automated update of the card details. In addition, a token cockpit in the mobile app keeps consumers informed of where their payment card is stored. It allows them to remotely manage the lifecycle of their cards at the merchant or through their digital wallets.

Physical and digital merge into phygital

A good example of this is the phygital card issuance journey that is in demand by the market. Registering with a bank or a fintech is the first decisive moment in this journey. Customers can choose, design and customize their own card images in the mobile banking app.

In real time, a virtual card is issued immediately for active use, such as for online shopping or mobile payments. While the physical card is produced and shipped, digital updates are sent securely to the consumer via the mobile banking app.

The card comes with a personal carrier with personal and highly relevant information. It could be an invitation to a special event or a QR code that takes the cardholder to an augmented reality experience for activation. Customers can get involved and learn more about the benefits of the bank’s offer.

Express yourself – lifestyle and payment

In recent years, many fintechs have already differentiated themselves with unique payment card offerings that represent their unique brand and services. More specifically, extensive packages for exclusive travel, green investment plans or collaborations with major commercial or fashion brands are part of their services. Metal and glow-in-the-dark cards were introduced. Soon we will see materials such as wood, ceramics and paper entering the market, and exciting designs with OLED or 3D effects.

As mobility picks up again in the post-covid era, “invisible” or “embedded” payment on the go will become more important. This means that payments happen almost unconsciously in the background. Using Uber as an example, payment is automatically made the moment the passenger gets out of the car. We also see that electric cars pay “by themselves” at the charging stations. We can also easily shop for groceries without lines and personal payment at the checkout.

In the fintech world, we can see good examples of how to exploit these trends: CashApp introduced cards with personal design, WLTH announced a collaboration with Parley, Amazon Go embedded payment entered Whole Food products. And Doc economy and Patch offer solutions to track and offset CO2 emissions based on daily payment transactions. More to come – an exciting 2023 ahead.