Fintech Industry Trends

If you want to understand the cross-border #payments’ trends and #future, then this is a key list. My highlights from the OMFIF future of payments 2024 report, just published: 1. CBDCs (Central Bank Digital Currencies): -      Multi-CBDCs are emerging as alternatives to existing cross-border payments systems. -      Multi-CBDCs aim to 1) improve efficiency 2) reduce costs 3) challenge incumbent infrastructure by enabling transactions in local currencies. -      Project mBridge remains the most advanced multi-CBDC platform: · MVP stage in June 2024 · 32 observing members (out of which 28 central banks) · Biggest limitations for widespread adoption 1) liquidity 2) governance -      Interoperability models of CBDC design a key consideration. -      Faith in connecting CBDCs to improve x-border payments has dropped sharply 2. Correspondent banking: -      A $200 bn annual revenue business -      Compliance complexity is the number 1 driver keeping costs up -      Standardization (i.e. ISO 20022) is the way to reduce costs, but implementation has been a challenge (only 66% of surveyed institutions are likely to meet the November 2025 transition deadline). -      APIs and #AI are the main technologies to improve CB and bring down costs -      Fintechs have spotted the opportunity and are challenging banks 3. Tokenization: -      Tokenization can 1) streamline compliance checks 2) improve settlement efficiency 3) unlock new functionality -      Despite the growing popularity of stablecoins, the official sector remains skeptical of ceding control of tokenized cash to the private sector -      Achieving a cross-border tokenized network will not be easy (governance is the main challenge) -      There are several consortia, both public and private, pursuing tokenization. Project Agorá and Partior are two examples. -      Project Agorá’s goal is to create a platform for wholesale xborder payments including tokenised wholesale CBDC and tokenised commercial bank deposits. 4. Instant payments systems (IPS) -      Rapidly growing in importance - in use in 80 countries worldwide -      India and Brazil in the lead with UPI and Pix respectively -      Interoperability is the main challenge. BIS’s Project Nexus acts as a model by proposing a central hub to standardize the IPS connections (vs bilateral connections that are very difficult to scale) -      However, even central models like Nexus need substantial investment and face maintenance and governance challenges -      Connecting instant payments systems is seen as the most credible option to improve x-border payments Fragmentation remains the key challenge for cross-border payments. Despite promising initiatives across many levels and jurisdictions, we are still far away from an optimal set-up, i.e. a kind of a global payment network. Summary by: Panagiotis Kriaris, source: OMFIF, Future of Payments 2024

#Africa bleeds $5B a year not to #corruption or #mismanagement, but just to move money within its own borders. Example: A Kenyan business paying a Ugandan supplier. Instead of Nairobi → Kampala, money goes: Nairobi → USD conversion (1–2%). USD routed via New York/London ($20–50 fee). USD → Ugandan shillings (another 1–2%). By the time a $26,000 invoice is paid, $500–1,000 is gone. Whilst we may be denied visas, our money travels freely through New York. And it’s not just trade: Africa’s #diaspora sends $95B home each year, yet pays the world’s highest remittance costs. -We pay the highest cost for credit. -We pay the highest cost for payments. -We pay the highest cost to send our own money home. It’s not inefficiency. It’s design. The #GlobalFinancialSystem wasn’t built for us. The good news? Solutions exist. #PAPSS (Pan-African Payment and Settlement System) is already live linking 15 central banks, 150 commercial banks, and 14 payment switches, with the capacity to handle $300B in intra-African trade annually. Through PAPSS, that same Kenya–Uganda  transaction could  look very different: -One direct conversion from KES → UGX (0.2–0.5% spread). -Settlement netted via African central banks. -Funds received in hours, not days. Estimated cost: $60–150.  Potential savings: $500–950 on a single $26,000 payment. No detours. Value stays in Africa. The challenge isn’t invention. It’s implementation. One Africa. One market. One #payment system. AI image below*

Did Coinbase and Shopify just kill card interchange fees with their new protocol? The Commerce Payments Protocol launching on Shopify establishes the first standardized messaging format for programmable money. Complete with consumer protections. Think of it like ISO8583 but for stablecoins Here's how it works: --- Two components handle every transaction: Escrow = Funds held before transfer Operator = Smart contract executing payment rules The protocol standardizes how these communicate, regardless of who builds the Operator. --- Consumer Protection Layer Programmable money now includes traditional safeguards: ✅ Funds held in escrow until delivery confirmed ✅ Programmable refund windows ✅ Built-in dispute resolution ✅ Fraud detection at protocol level Surely this is better than chargebacks? And less expensive! --- Shopify Scale Test 10% of global e-commerce runs through Shopify. This protocol will handle disputes, refunds, and fraud detection at massive scale from day one. Will it get battle tested or be just another PR in stablecoin summer? --+ The ISO8583 Parallel ISO8583 made card payments universal by standardizing bank communication. Coinbase Commerce Protocol does the same.. This protocol standardizes stablecoin operations: • Dispute handling procedures • Escrow mechanics • Refund processes • Fraud prevention protocols --- This doesn't kill card networks Anyone could be the "operator" not just Coinbase. It could be visa or MasterCard. The role of networks is network effects and rules. Who will make those rules? #Fintech #Stablecoins #Payments #Infrastructure

Across every industry, social media in some form has carved out a significant role, whether as a learning tool, marketing component, or engagement tool. Finance is no different. In recent years, we’ve seen “finfluencers” emerge as a major source of both financial education and advice. While increasing access to education can have beneficial impacts on society, it’s clear that social media as a source has yet to be sufficiently regulated and understood. A recent CFA Institute study found that only 53% of social media content containing financial promotion and 20% of content containing an investment recommendation included proper disclosures. As we navigate the complex landscape that is social media, it will take shared effort from financial institutions, regulators, and social media platforms to ensure safe, informative practices for investors If you’re curious about the finfluencer landscape, our recent report, The Finfluencer Appeal: Investing in the Age of Social Media, explores it in great detail: https://bit.ly/3ubyhEA #Finfluencer #SocialMedia #Investors #FinancialEducation

As 2023 comes to close, I’m reflecting on the challenges we set out to solve for our small business customers this year and the learnings we'll take into 2024. 99.9% of U.S. businesses are defined as a “small business,” and this population has access to many financial products across banking, loans, charge cards, and digital payments for running their businesses. Each can help to show how a business is doing financially – but seeing the big picture is still hard, and it can affect a business’ success. Here are the key trends I see in small business financing next year: ➡️ The environment for small businesses will remain complex. In 2023 alone, the cost of borrowing for U.S. businesses rose upwards of 30%, and small businesses will feel the impact of that trend more than any other segment. Regardless of how the year unfolds, business owners will need to navigate the economic landscape to be confident about the future of their business, and a sound financial footing is the best place to start. ➡️ Small business owners will continue to move at the speed of light in how they make decisions and balance responsibilities. To do this, they’ll look for ways to make their financial products work together in a connected way to digitize and simplify their finances. Businesses send out dozens if not hundreds of invoices every week and get different kinds of payments from different buyers – from card payments to ACH or paper checks. They’ll want solutions that give them a clear picture of their money flow and help in bringing more of those payments online, to help save time, reduce mistakes, and make things more efficient. ➡️ Every dollar counts for small businesses, especially in a high inflation, high interest-rate environment. This emphasizes how small businesses will try to get the most value out of their financial products – whether that’s data and insights that can help find patterns and efficiencies; business cards that offer business-specific features and rewards that can be re-invested back into their business; or the service and security of financial programs that can do exactly what business owners need them to do. For small businesses, getting this right could make a big difference in how they manage through the ups and downs of the economy, and I hope to see financial institutions rally around small businesses to make it happen. #BigIdeas2024

The Global Payments Report 2024 Consumers have more payment options than ever before and it is the choices they make that drive the payment landscape. Explore this new choice era in the 9th edition of Worldpay's Global Payments Report, your expert guide to payments across 40 markets. Understand how consumer choices become trends and understand what these trends mean for the future of your business. 1 ) A2A Payment - Despite increasing dominance in markets like Brazil and India, A2A remains challenged in card-heavy markets such as the UK and USA. A2A’s lower cost of payment acceptance makes it popular with merchants. 2) Buy Now Pay Later (BNPL) Companies faced well-documented headwinds in 2023 including rising interest rates, looming regulation and souring investor sentiment. Consumers countered those headwinds by choosing BNPL more than ever. 3) Global E-Com Global e-commerce surpassed $6.1 trillion in 2023 and is growing at more than twice the rate of global POS value. E-com growth is projected for 9% CAGR (versus 4% for POS) through 2027. 4) Cash vs Digital Although cash fell -8% globally in 2023 and is expected to decline at -6% CAGR through to 2027, it remains relevant amid economic uncertainty. It is still a vital payments tool for billions of consumers. In 2023, cash accounted for 16% ($6 trillion) of global transaction value, including double-digit share in 30 of 40 markets in this report. 5) Prepaid Card Prepaid cards will exceed $1 trillion in global transaction value. Versatility drives prepaid cards’ success: as gift cards, reloadable stored value cards, for payroll, business-to-consumer payments and as government benefits. 6) PostPay Although it remains popular in cash-heavy LATAM and Japan, where it accounted for 5% of e-commerce transaction value in 2023, an upturn in financial inclusion and overall shift away from cash is signalling post-pay’s sunset. 7) Digital Wallets - Digital wallets are the most popular and the fastest-growing payment method globally, however consumers shop. In 2023, they accounted for 50% of global e-com spend (> $3.1T) and 30% of global POS spend (> $10.8T). 8) Card Vs Digital Payment Consumers turning to digital wallets isn’t a turn away from cards. In card-dominated markets, card spend is simply shifting to “pass-through” and “staged” digital wallets like Apple Pay, Google Pay and PayPal. Taken as a whole, card transaction values are at an all-time high and continue to rise. Feon Ang 洪雍华 | Sopnendu Mohanty | Navin Suri   | Oliver Turn | Tony Moroney | Theodora Lau Chris Gledhill   | Linas Beliūnas  | Bradley Leimer  | Huy NGUYEN TRIEU | Arjun Vir Singh   | Umar Farooq | Paolo Sironi | Chia Hock Lai 谢福来, CFtP | Tony Craddock | Dr. Martha Boeckenfeld | | Panagiotis Kriaris |Spiros Margaris | Dr Ritesh Jain   | Tamara McCleary  |Francesco Burelli | Ram Rastogi 🇮🇳 | Abhishant Pant  |Victor Yaromin | Sam Boboev | Nicolas Pinto 

New Banque de France blog post on “𝗲𝗻𝘁𝗿𝗮𝗹 𝗯𝗮𝗻𝗸 𝗱𝗶𝗴𝗶𝘁𝗮𝗹 𝗰𝘂𝗿𝗿𝗲𝗻𝗰𝘆: 𝘁𝗵𝗲 𝘀𝗼𝘃𝗲𝗿𝗲𝗶𝗴𝗻𝘁𝘆 𝗰𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲.” The rapid digitization of payments poses a dual challenge to the sovereignty of the Euro area: external and internal. The 𝗲𝘅𝘁𝗲𝗿𝗻𝗮𝗹 𝗰𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲 stems from our dependence on non-European payment services (the Visa-Mastercard duopoly, ApplePay-type applications, stablecoins linked to the US dollar). This first challenge is easy to understand. The 𝗶𝗻𝘁𝗲𝗿𝗻𝗮𝗹 𝗰𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲 is more difficult to grasp. Today, in the world of legal activities, it makes no difference to me whether I receive a payment in the form of banknotes or a bank transfer. In both cases, “central” currency (issued by the central bank) is transferred: directly via the banknote, or indirectly via the interbank transfer. And I can always convert the money received in my account (commercial money) into banknotes (central money) at a rate of 1 to 1. If my bank does not have enough cash, it can obtain it from the central bank by pledging high-quality assets. In addition, I benefit from deposit insurance up to €100,000. Distributed ledger technology now enables low-cost payments, particularly cross-border payments. This is a great innovation. However, the link with central bank money has been broken: exchange at a rate of 1:1 is not guaranteed by design. There is therefore a risk of monetary fragmentation, as was the case in the United States in the 19th century. Faced with these challenges, the Eurosystem is deploying a two-pronged strategy: on retail payments with the digital euro, and on wholesale payments with the Pontes and Appia projects. The aim is to preserve European monetary sovereignty in a context of accelerated digitization of payments and tokenization of finance, promote the integration of financial markets, and ultimately enable an efficient and sustainable financing of the economy. https://lnkd.in/emF2ShXh

While you're still debating your digital transformation strategy, Gen Z is shaping the ENTIRE future of payments - with $143 billion in spending power in the US alone. The "Gen Z and the Future of Payments" report from PXP came to my desk. The findings are reshaping everything we thought we knew about payment preferences. Gen Z isn't just adopting new technologies—they're fundamentally reshaping the entire ecosystem through their unique blend of digital-first preferences and unexpected traditional habits. Here are some mindblowing insights- ↳78% of Gen Z prefer brands that offer tailored experiences --> A "one-size-fits-all" approach to payments is dead. Generic checkout experiences are actively driving away your future customer base. ↳Despite being digital natives, 42% of Gen Z rank security as their top priority when choosing payment methods - above convenience, rewards, or speed. They're demanding biometric authentication, robust fraud protection, and transparent data practices. ↳57% consider multi-currency wallets essential for their travel needs, showing they expect global payment capabilities as standard - not a premium feature. ↳ But here's what surprised me most: Despite their digital-first reputation, 20% of Gen Z still carry cash as a backup for hospitality spending. They're not abandoning traditional methods entirely. They're demanding flexibility across ALL payment channels. GenZ's demands for personalization, security, and seamless global capabilities signals a pivotal moment for the entire Payments Industry. The Payment Builders and Leaders who listen and adapt will thrive. While those who cling to outdated models risk becoming irrelevant in an increasingly Gen Z-shaped financial world. My View- ↳I believe we're witnessing the birth of truly invisible payments. ↳The most successful payment solutions won't just be digital-first; they'll be embedded, contextual, and anticipatory. ↳The payment experience Gen Z demands will disappear into the background of every transaction - whether that's through wearables, biometrics, or AR interfaces in immersive retail environments. As payment professionals and builders, I urge you to ask ourselves: ↳Are you building payment infrastructure that adapts to how Gen Z already lives, OR ↳Are you expecting them to adapt to our legacy systems? Now, I want to hear from you, Payment leaders and Builders - ↳ What aspect of your payment experience needs the most urgent transformation to meet Gen Z expectations? ↳In the Gen Z-shaped financial world - the secret sauce to domination and winning is - security, personalization, and seamless cross-border capabilities will win. Does your product have these capabilities? Share your insights below. 👍 LIKE this post, 🔄 REPOST this to your network and follow me, Monica Jasuja

Wall Street firms are doubling down on digital assets. Last week's Q2 2025 earnings season exposed a clear divide: while some major banks and firms were relatively silent on digital assets, others positioned themselves as crypto pioneers. Recent legislative developments created more regulatory clarity and running room for financial institutions to explore institutionalizing digital assets, and the market leaders have been front running investments and partnerships and are wasting no time staking leadership claims in the space. Which firms are positioning, partnering, and investing to establish a lead? BlackRock has positioned itself as a leader in shaping the future of finance, with increasing involvement in digital assets, tokenization, and managing stablecoin reserves. Beyond the earnings rhetoric, what is BlackRock doing to drive this innovation? BlackRock's business relationships reveal the depth of their digital asset strategy. Their partnerships span cryptocurrency custody (Coinbase, Anchorage Digital), stablecoin backing (Ethena), and blockchain infrastructure (Injective). They've also invested in digital asset trading platforms like Flowdesk and fintech innovators including Upvest, Texas Stock Exchange, and Sokin; creating a comprehensive ecosystem for digital asset integration across trading, custody, and tokenization. Insights on other major players' digital assets strategies from CB Insights' Earnings Analyst agent insights on their Q2 earnings calls: → Citigroup emerged as another aggressive adopter, with CEO Jane Fraser expressing "high confidence and enthusiasm" about Citi Token Services' ability to provide "multi-asset, multi-bank, cross-border, always-on solutions without needing to partner with other banks." → BNY Mellon and State Street focused heavily on stablecoin infrastructure, with BNY serving as "reserve custodian for Société Générale's first USD stablecoin in Europe" and "primary custodian for Ripple's US stablecoin reserves." State Street's CEO highlighted how "tokenization of money market funds enables uses of these assets in a different way than originally anticipated." CB Insights' Earnings Analyst agent help identify these strategic pivots immediately after calls. Want insights analysis on the major tech firms announcing earnings this week? Comment "Mag7" below for free access to CB Insights' Earnings Analyst breakdown of each Mag7 Q2 2025 quarter and where they are headed.

Shaping the future of payments • Trend 1: Cash finds its floor-Consumers use credit cards, peer-to-peer (P2P), and other digital payments more frequently as checks move toward extinction and cash finds its floor. • Trend 2: Regulators bring nonbanks into the fold-Expanded scope of banking regulation, to include nonbanks, will change the players of the payment market as some nonbank payment providers leave due to increased regulation. • Trend 3: BNPL moves to industry sectors-Buy now, pay later (BNPL) and other digital payment options will expand into new sectors like housing and utilities, grocery, car payments and repairs, and travel, especially as consumers battle inflation and focus on nondiscretionary spending. • Trend 4: ISVs increase their SMB hold-Small and midsize business (SMB) merchants gravitate to integrated software vendors (ISVs) for operational simplicity and provide pre-integrated payment rails, including consumers' go-to digital wallets. • Trend 5: Al drives fraud prevention to newer dimensions-Artificial intelligence (Al)-driven fraud models will expand to better consider consumers' digital identity and personalized spend insights to combat the growing complexity of fraud. Delloite Report: https://lnkd.in/gWkNGUyc #payments #banking #financialservices #openbanking #ai #fraud