Jason Simon provides some of the FinTech trends coming next year

Payment players are redirecting their focus from user acquisition to profitability, and are focusing on creating applications that extend the 360° user experience. The payout development for the coming year aims to match growth with profitability. FinTech is always looking to stay ahead of the curve, and Jason Simon, as subject matter expert, adds some of the trends in the area that may be evident in 2023.

Players will increasingly begin to move away from their single product models to build concentrated service ecosystems ranging from credit and commerce solutions to real-time payments. With consolidated growth in recent years, the expectation is now to design applications that digitize the daily use of cash on all fronts.

The challenge going forward is therefore to build a value proposition that resolves the distortions – of preference or regulation – in the various Latin American countries. “We have every opportunity to continue working on being the single point of contact for payments,” says Simon.

For the expert, the dynamic for participants in the payment industry has changed. They are now immersed in healthy and sustainable portfolio strategies that focus not only on discounts, cashback and loyalty points, but on experiences, products and solving the obstacles in users’ financial lives.

“Many platforms aim to achieve simple economics and solve it through an application with built-in solutions or partnerships that collaborate in this process of extending the user experience,” claims Simon. Related comments were revealed during the event “Digital Payments 2023: What’s New and Trending.” Various specialists such as Simon shared their expectations and focal points for product and functionality development for the coming year.

The first frontier of exploration (or exploitation) for next year will be personal microcredits, under Buy Now, Pay Later (BNPL).
According to Simon, the region is “fertile ground” to continue providing this type of loan, above all “as an opportunity to continue adding new customers through a value proposition that discourages informal credit in exchange for a closer one (at the point of sale) ). flexible and secure alternative.

On the other hand, real-time payments have come to challenge the industry, Simon assures, due to the need for interaction between traditional players, FinTechs and regulators. The challenge also lies in the infrastructure linked to all the “wiring” that lies behind the payment methods, but which makes it possible to “bring simpler products, such as QR, to the forefront”.

He also adds that these initiatives will encourage easier use than the cards themselves, the complexity of which lies not only in the cost, but also in the POS terminals that need to be installed in the stores. Now public initiatives such as CoDi in Mexico, Pix in Brazil, Transferencias 3.0 in Argentina and other systems planned for next year in Colombia and Peru are expected to enjoy equal incentives for all participants in terms of revenue generation.

“It’s a challenge CoDi has had for participants to say it’s zero cost,” Simon added. “With that, it’s very difficult to make that infrastructure and connectivity an expense. Otherwise, I’m going to be able to make money from it. However, there is an opportunity when it comes to reviewing and understanding the right incentives.”

For the expert, the sense of regulation should be to move towards an approach that unifies experiences and facilitates the payment process for the user. While some countries maintain closed interoperable payment loops, the thinking is that the regulatory approach to this practice will shift towards openness within the next year to the benefit of all.

For Simon, the relationship with merchants (from a purchasing point of view) goes beyond payments. He resorts to offering multiple ecosystem solutions that, while starting by processing payments to the merchant, can then leverage other products or services.

About Jason Simon

Jason Simon is a FinTech and digital payments expert who got involved with cryptocurrencies when they were first introduced. He enthusiastically follows what’s happening in the evolving world of finance, excited by the prospects digital currencies offer global consumerism. When he is not involved in helping advance the digital payments space, he enjoys spending time with his family and improving the community.