As 2024 comes to a close, PYMNTS’ “What’s Next in Payments” series has captured key insights from industry leaders about the evolving landscape of banking, payments, and the connected economy. Highlights include discussions on the future of generative AI in finance, the transformation of banking as institutions adapt to consumer demands, and advancements in payment modernization aimed at increasing efficiency. Executives emphasized the importance of digital transformation and improved fraud prevention strategies, leveraging mobile-first solutions and open banking initiatives. These conversations offer a glimpse into the financial industry’s direction as it heads into 2025, highlighting both challenges and opportunities.
As 2024 comes to a close, insights from PYMNTS’ “What’s Next in Payments” series reflect the evolving landscape of banking, payments, and the connected economy. Here are some key takeaways and predictions from industry leaders shaping the future of finance into 2025.
Future of Generative AI
In discussions on generative AI, Sunil Rajasekar, CEO of Billtrust, emphasized the need for regulations to ensure safe implementation. He highlighted that proper frameworks could enhance AI’s benefits across various sectors, predicting an upward trajectory for its adoption despite potential hurdles. Rajasekar expressed excitement about the future possibilities AI can bring to businesses and consumers alike.
Bank Evolution
April brought about a significant change in how we understand banks. Michael Haney, head of product strategy at Galileo Financial Technologies, shared that consumers now expect banks to adapt to their needs wherever they are. As competition increases, banks must focus on providing services that cater directly to consumer preferences, rather than having customers chase after them.
Payments Modernization
By mid-year, discussions about payments modernization revealed that the goal is simple: to make money management easier and faster for consumers. Seth Perlman from i2c pointed out that customers are driving changes, demanding real-time, flexible payment solutions. This evolution is crucial for future financial transactions.
Digital Transformation
In the third quarter, industry leaders explored how businesses are integrating digital solutions. Brad Rosenfeld from Prove Identity noted the increasing importance of mobile-first strategies in markets like India and Brazil. Mobile identity verification, he explained, is essential for creating a seamless customer experience while combatting fraud.
Battling Fraud
As 2024 wraps up, the fight against fraud is more critical than ever. Akbar Hussain from TerraPay remarked on the interconnected nature of today’s financial systems. The rise of open banking is allowing consumers to connect their banks with various third-party apps, but it also brings new vulnerabilities. Elly Aiala from Boost Payment Solutions echoed this sentiment, noting how fraudsters are exploiting advanced technologies, including generative AI, to launch sophisticated attacks.
In summary, the conversations around what’s next in banking and payments point toward a more integrated, consumer-driven future. Companies are evolving to meet the demands of their customers, implementing cutting-edge technologies to enhance security and streamline financial processes. The predictions suggest a dynamic landscape as we move into 2025, with innovation and adaptation at the forefront.
Tags: banking, payments, artificial intelligence, fraud, digital transformation, financial services, customer experience, generative AI
What are the trends in payments right now?
The current trends in payments include the rise of digital wallets, contactless payments, and cryptocurrencies. These methods are making transactions faster and more convenient for everyone.
How have consumer preferences changed in payments?
Consumers now prefer quick and simple payment methods. They look for options like mobile payments and online transaction methods that save time and offer security.
Why is security important in payment methods?
Security is crucial because it protects personal information and financial data from theft. Strong security measures help build trust between consumers and payment providers.
What impact has technology had on payments?
Technology has transformed payments by introducing innovations like biometric authentication and blockchain. These advancements increase efficiency and make transactions smoother.
How can businesses prepare for future payment trends?
Businesses should stay informed about new payment technologies and be ready to adapt. Offering various payment options and focusing on security can help them meet changing consumer demands.
