LexisNexis® Risk Solutions unveils 2024’s 5 mighty payments trends

TLDR:

• Rapid growth is expected for account-to-account (A2A) payments, which allow money to be transferred directly from one party’s account to another instantly.
• Payment fraud, particularly authorised push payment (APP) fraud, is on the rise as more payments move online and real-time payment systems become the norm.
• Reducing the cost of payments is becoming increasingly important as factors such as high interest rates and volatile credit markets drive up costs.
• Corporates are bringing payments operations in-house to gain greater control and deliver a better customer experience.
• Banking as a service (BaaS) is gaining momentum as banks offer real-time payments capabilities to corporate customers through APIs.

As the payments landscape continues to evolve, LexisNexis® Risk Solutions has highlighted five key trends to watch in 2024. First, the company predicts rapid growth for account-to-account (A2A) payments, which enable money to be transferred directly between accounts instantly. Payments will become faster, more convenient, and less costly with further adoption of instant digital payment solutions. Second, payment fraud, specifically authorised push payment (APP) fraud, is expected to increase as payments move online and real-time payment systems become more popular. Combatting APP fraud will require the wider adoption of confirmation of payee (CoP) and other controls. Third, reducing the cost of payments is becoming imperative as factors like high interest rates and compliance controls drive up costs. Automating payment processes will be a top focus for businesses looking to reduce costs in 2024. Fourth, corporates are bringing payments operations in-house to gain more control and provide a better customer experience. This has led to the growth of corporate treasury management systems that centralize all payment activity and offer faster processing and real-time visibility. Finally, banking as a service (BaaS) is gaining momentum as banks transform their payment service operations and offer real-time payments capabilities to corporate customers through APIs. BaaS allows banks to become channel partners and resell payment routing solutions, providing a holistic solution for managing the complexity of payments routing. Overall, companies that consider payments processes in relation to the overall customer experience will stay ahead of the competition.