Key Insights for Global Business

As we enter 2024, it’s clear that digital payments are not just convenient; they're critical for business agility and growth in today's fast-paced economy.?

Leveraging insights from our research and in-house experts, we looked at the key trends shaping the future of the digital economy, spotlighting Artificial Intelligence, real-time payments, and state-of-the-art fraud detection ??

AI: The New Power Player in Payments

Artificial Intelligence is setting benchmarks for payments optimization. With algorithms that outsmart fraud, chatbots providing round the clock support, and predictive analytics that personalize the payment experience, AI is redefining the landscape. It streamlines security, increases operational efficiency, and enhances every step of the customer journey

One standout benefit? AI addresses the critical issue of false declines, which cost online businesses $51 billion in 2022, by employing continuous testing to reduce incorrect transaction rejections. Enterprises need to harness AI solutions like Intelligent Acceptance to comprehend customer behaviors, thereby increasing approval rates, enhancing payment performance and ultimately building customer loyalty.

PSD3 and What It Means for You

The European Commission is gearing up to revise regulations governing the payment services industry with the upcoming release of the third Payment Services Directive (PSD3) anticipated in late 2024.?

Staying ahead of the curve with evolving regulations such as PSD3 and PCI DSS is crucial for businesses. Being up-to-date will help you implement necessary adjustments in your operations and ensure you adhere to the latest regulations, ultimately fostering trust and confidence among your consumers.

In this ever-shifting regulatory landscape, the value of a nimble partner cannot be overstated. A platform that adapts swiftly to new regulations is not just a tool—it's your business's safeguard

The Rise of Real-Time Payments

Real time payments are reshaping the financial world. In 2022, global RTP transactions reached a staggering $195.0bn, marking a remarkable year-on-year growth of 63.2%, as detailed in the 2023 Prime Time for Real-Time report.

In the pursuit of quicker and more affordable payment methods, businesses and consumers are turning to options like 'Pay by Bank' methods and tokenization in the US. This approach not only enhances the transactional efficiency but also often reduces costs associated with traditional payment methods, benefiting both the business and its customers.

Outsmarting Fraud: A Strategic Imperative

As the sophistication of fraud tactics escalates, businesses require advanced detection and prevention methods.?

By the end of 2023, ecommerce businesses around the world will have lost almost $50 billion to payment fraud – and it’s growing. By 2024, card-not-present (CNP) fraud alone – which accounted for $8.75 billion in payment fraud losses in 2022 – is projected to hit $10.16 billion.

Fraud detection relies on a range of strategies – including machine learning, pattern recognition, and data analysis – to separate the legitimate transactions from the fraudulent ones. And, with the rise of AI, fraud detection systems are becoming even smarter and more scalable.

There’s no ‘one size fits all’ approach to detecting and preventing online payment fraud. Which means your business can’t afford to rely on one fraud prevention strategy alone – but a comprehensive toolkit that adapts to the shifting sands of the payment fraud environment.

Payments Recognized as a Strategic Partner for Business Growth

Efficiency is the new growth strategy, and payments will increasingly be seen as a strategic partner for business insights in 2024.

Our research indicates that an increasing number of CFOs and their teams recognize the strategic potential of payments and their influence on revenue growth, with 67% of Heads of Payments saying they have secured board-level buy-in. CFOs are eager to enhance their payments performance, not merely to recover losses, but also to grasp the potential for heightened profitability.?

Optimized payment systems serve as more than a lifeline; they act as a catalyst for gaining a competitive edge and enhancing profitability.?

Cross-Border Payments: Powering Global Expansion

The explosion of cross-border ecommerce is more than a trend—it's a trajectory that's set to steepen in 2024. Over half of enterprise merchants intend to venture into new markets within the next 24 months.?

However, digital merchants face unique challenges when it comes to cross-border payments, from ensuring payments acceptance to navigating regulatory requirements.

This anticipated expansion will inherently drive the demand for robust PSPs equipped to handle the complexity of market regulations and dynamics.? Embracing payment solutions and partners that simplify and streamline cross-border transactions will be crucial for businesses looking to expand globally.

Unlock the potential of your payment strategies by partnering with Checkout.com. Our expert team possesses the cutting-edge tools and on-ground expertise needed to navigate emerging trends, ensuring your payment performance reaches new heights in 2024 and beyond.