Payment Trends to Watch in 2023

The pandemic accelerated the speed of digital transformation in the payment world, with huge increases in online payment volumes, but also in ancillary applications – notably BNPL (Buy Now Pay Later), while Banking as a Service is emerging as the next big thing.

The pandemic accelerated the speed of digital transformation in the payment world, with huge increases in online payment volumes, but also in ancillary applications – notably BNPL (Buy Now Pay Later), while Banking as a Service is emerging as the next big thing. We take a short and snappy look at what’s hot and what’s happening in Fintech for 2023…

  • Acceleration of Open Banking

Online Card payments have been transformed with much-improved user experiences and integrated checkout platforms, but there is still a massive variation of payment methods across Europe – ApplePay and GooglePay are making the mobile experience, in particular, more seamless. However, Open Banking opens up the possibility for instant account-to-account transfers with a similar user experience to some wallets. This is likely to continue to grow across Europe, perhaps catching up with development in the UK where it has taken a firm foothold. This has been helped by a standard integration specification there, something which is, unfortunately, lacking in the EU. 

  • Moving to Banking as a Service

More and more companies are discovering the power of embedded finance, and banking as a service that enables on-demand banking features such as payments, inbound payment notifications, and deep integration with accounting and ERP/CRM platforms. The ability to integrate a bank account within a business application cuts the requirement to jump into the internet banking environment and a separate – manual – workflow. Increasing awareness of Banking as a Service is likely to drive adoption. 

  • Fast and frictionless

Businesses and consumers alike are looking for the easiest, most secure and economic ways to make payments – both online and offline. While the introduction in Europe of PSD2 (the last EU regulations governing payments) has led to increased security and better regulation of the industry, the implementation (Secure Customer Authentication, 2 Factor Authentication etc) varies greatly with major impacts on customer experience. Expect this to change as platform providers realise the potential of seamless customer experience – or Nofrixion as we like to call it. 

Things to look forward to…

The common denominator in top fintech trends is the move to an increasingly frictionless world. In the end, software eats everything. If there’s a process, a workflow, or anything else getting in the way without adding value, it is likely to be replaced by software. NoFrixion’s payments account and MoneyMoov API can replace 90% of day-to-day banking requirements, cutting manual intervention by a similar amount, while freeing up reconciliations and payments teams to focus on customers instead of antiquated processes. 

Ask your developer to give it a try….https://www.nofrixion.com/sandbox or send us a mail to find out how we can help: info@nofrixion.com

 

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