Popular forms of payment have changed dramatically over the past several years with the growing popularity of tech like digital wallet apps, QR code payments, and contactless cards. As innovation continues, companies can draw new markets and stand out from competitors by offering some of the latest and greatest payment methods.
It can be challenging to keep up with fintech’s near-constant growth while running your business, so we’ve developed this guide to the biggest payment industry trends in 2023. You’ll be ready to revolutionize your company’s payment platform with a focus on the future when you become familiar with these eight hot growth areas.
8 Fintech and Payment Trends to Watch Out For in 2023
Digital payments will command even more of a market share in 2023, as tried-and-true options like mobile wallets become more popular across demographics. Within the digital payment space, you can expect these huge trends to show up in your industry if they haven’t already. Get ahead of the curve by familiarizing yourself with these 8 fintech growth areas.
1. Greater Adoption of Cryptocurrency
Use of cryptocurrency will continue to increase in 2023 as even more payment companies add these options at checkout. For example, PayPal users can select Bitcoin or another form of cryptocurrency at the point of sale. Visa has partnered with approximately 65 cryptocurrency companies to begin supporting these alternative forms of payment.
Customers and merchants benefit from the limited fees, security, and convenience of cryptocurrency transactions.
The coming year will likely bring increased national and international regulation as many nations adopt new rules for Bitcoin and other alternative payments. AMC Theaters, Microsoft, and AT&T are just a few of the businesses that already take Bitcoin for online orders.
2. Expansion of Web 3.0 Payment Tech
Businesses increasingly use Web 3.0 to develop customized user experiences, including intelligent checkout processes. For example, this type of platform can provide data-driven recommendations based on how customers have paid in the past and methods they prefer.
Natural language processing tech allows users to make payments on their devices through voice commands. Artificial intelligence (AI) creates personalized recommendations and offers based on past customer behavior.
Web 3.0 can also enhance payment security. Components such as blockchain support decentralized payment networks, a transparent alternative to existing payment methods.
3. More Cross-Border Payments
As globalization continues to grow, your business needs to be able to accommodate buyers in other countries. Although cross-border payments traditionally take much longer than domestic transactions, that’s set to change rapidly over the next few years. New tech supports faster global payments, often providing approval and funds transfer in less than 10 seconds.
Pay.com offers global payment processing so you can accept payments from customers all over the world. Our platform addresses factors that lead to delays or declines with international payments so your users have a seamless experience.
4. Rise in Embedded Fintech
Financial institutions will increasingly integrate fintech services into their online offerings. More banks will offer add-ons like bill negotiation, subscription management, and protection from data breaches, fraud, and identity theft, creating so-called “super-apps” where customers can manage their money and identity.
Many financial companies will partner with tech providers to develop and administer these embedded services. As a result of these collaborations, the embedded fintech market is projected to increase in annual value by more than 40%.
5. Enhanced API Capabilities
It will be easier than ever to upgrade your company’s site with fintech innovations through the sector’s thriving API ecosystem. Application programming interfaces let your business customize a targeted user experience that speaks to your market’s needs and preferences.
Emerging API capabilities include support for global payments with both international and local methods, integrated order tracking, recurring payments that vary in size, and instant refunds.
Pay.com provides developer-friendly APIs. Your team can integrate our payment infrastructure so it fits seamlessly with your existing online platform. Creating a consistent user experience from browsing to buying encourages sales and builds strong customer connections.
6. Widespread Availability of Real-Time Payments
The Federal Reserve will launch its FedNow system in 2023, dramatically increasing the availability of real-time payments (RTPs) in the US. Customers can make and receive instant payments through domestic banks 24 hours a day, 365 days a year. FedNow will support RTPs of up to $500,000.
In general, instant payments cost less than wire transfers but more than ACH payments. Outside the US, 54 countries have already adopted similar systems, so the country is finally catching up in the RTP space.
7. Growth in Buy Now Pay Later Platforms
More customers than ever before will use Buy Now, Pay Later (BNPL) in 2023. Statista reports that this sector will be worth more than $576 billion by the end of the year. As BNPL services grow in popularity, many providers will expand to offer even more financial options.
Buyers who want to take advantage of interest-free installment payments will find lots of new opportunities. Many financial institutions have announced their own upcoming BNPL plans. BNPL will also move beyond the ecommerce space as businesses introduce this option at physical locations.
8. Advanced Identity Authentication
The popularity of contactless and mobile payments requires increased attention to digital identity authentication. Fintech companies are developing new methods of authentication for both consumers and businesses, including designated digital ID cards.
You’ll eventually be able to verify customer identity with unique, secure electronic tokens. These digital IDs can potentially be used across multiple services. They’ll likely have the backing of national regulators, which means your company can trust digital IDs as a secure way to pay.
Pay.com already protects transactions with 3D Secure 2.0 multi-factor authentication. This system flags potentially fraudulent purchases and asks the customer for another form of identity verification. For example, 3DS2 may request verification through a unique code or link for transactions of an unusual amount or from an unexpected location.
The Best Way to Accept Online Payments in 2023
Pay.com is the best way to accept online payments in 2023 and beyond. We support multiple payment methods including credit and debit cards, digital wallets, ACH transfers, and many more. We can also help you keep up with some of the year’s biggest fintech trends so your company can continue to meet ever-evolving consumer expectations.
Through our full-service solutions, your business can:
- Accept global payments without unwanted delays and declines
- Customize your checkout experience with powerful API integrations
- Comply with Level 1 of PCI DSS so you don't have to meet these standards on your own
- Authenticate potentially suspicious transactions and avoid payment fraud with 3D Secure 2.0
It’s all available for one flat fee per transaction. Pay.com uses transparent, easy-to-understand pricing, so it’s affordable to upgrade to our flexible payment platform.
The Bottom Line
As fintech grows and changes more quickly than ever before, it’s easy to feel like your business could be left behind. Getting up to speed with these 8 big payment industry trends will put you ahead of the curve.
Pay.com can partner with your business to create a convenient, seamless checkout experience for your users. We frequently add new payment methods and features so you’ll be able to keep up with even the most tech-savvy competitors and accept credit cards, debit cards, ewallets, and many other digital payment methods.