Top 10 Trends in Payments 2024 (4/5).

Welcome to our latest edition of "Connecting the Dots in Payments with Arthur Bedel," where we explore the dynamic world of financial transactions and innovations alongside this esteemed payments professional. Join us as we uncover insights and trends shaping the future of payments.

Top 10 Payment Trends for 2024 - Instant Payments (RTP) & e-Money transfers & Central Banks embrace Digital Currencies (CBDC) (Part 4/5)??

As innovation keeps striking the Payments Industry, let's recap the 6 prior trends have will disrupt 2024:

??Real Time Treasury

??Card Alternatives

??Cloud-native Composable Platforms

??Digitalization of Account Payables / Receivables

??Local APMs including RTP to challenge Cards

??Regulatory initiatives disrupting FinTech & Payments

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??Top Trend #7 - The new Digital Payments Mix features Instant Payments (RTP) & eMoney transfers

The expansion of applications built on Instant-Payments use cases - i.e. Bill Payments, POS, eCommerce - will increase its adoption. Instant payments enable almost immediate money transfers between accounts, enhancing transaction speed, convenience, and efficiency compared to the traditional mix.

??79+ countries across six continents had adopted real-time payment systems, representing 63% year-on-year growth and 195 billion transactions in March 2023

??Benefits of Instant Payments: Quicker settlement times, heightened efficiency, enriched customer experiences, convenience, elevated security, and more effective financial management

?? The European Payments Initiative (EPI) will launch its digital wallet solution #Wero (We + Euro) by mid-2024 across France, Belgium and Germany. A new era.

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??Top Trend #8 - Central banks embrace CBDC to maximize financial inclusion

By mid-2023, 130 countries representing 98% of the global economy were exploring digital versions of sovereign currencies, CBDC, with almost half in advanced development.

??2 distinct kinds of CBDC: Retail CBDC will enable digital money exchange between public/private institutions and individuals, or person to person. Wholesale CBDC enables settlement of cash or other financial instruments between financial institutions and/or large corporations

?? Proofs of concept and prototypes are underway for payments based on distributed ledger technology (DLT), cross-border payment versus payment (PvP) transactions, and wholesale-market delivery versus payment (DvP) transactions.

?? Issuance of internationally compatible CBDC would decrease reliance on costly and sluggish cross-border money transfer services and reduce dependence on interbank messaging services

?? Widespread CBDC use may also spark financial inclusion of unbanked and underbanked populations by enabling access to liquidity and credit offered via traditional finance systems.

Part 5 is next with (9) Tokenization opens new Frontier for value creation & (10) AI for Payment Services ??

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