Let me sum up this week’s insights for you. So, it looks like payment trends in 2024 are heavily influenced by regulatory initiatives aimed at spurring innovation and ensuring robust security in cashless economies. Regulators worldwide, like those in the European Union, are pushing for directives like the PSD3 to create unified payment markets while balancing the playing field for traditional financial institutions, FinTechs, and BigTechs. Interestingly, emerging markets seem to be leading the charge with advancements in low-cost, high-speed payments, while established players like SWIFT are adapting to meet the demand for instant transactions with solutions like SWIFT Go.

Additionally, real-time payments are gaining traction globally, with collaborations between governments, merchants, and consumers driving adoption.

The move towards coreless banking systems and the rise of BNPL-as-a-Service highlight the industry’s shift towards agility and innovation.

Lastly, contactless payments are evolving with varying limits worldwide, reflecting different regulatory approaches and consumer preferences.

Let’s jump into the news now! Panax, a Fintech company, just scored big with a $15 million investment in its latest funding round led by Team8 and TLV Partners. They’re all about reshaping how we manage cash flow using AI, which sounds pretty cutting-edge.

Then, down in Mexico, Aplazo is making waves with a whopping $70 million in equity funding, including a hefty $45 million Series B round. They’re all about empowering merchants with flexible payment solutions and tools to boost sales and brand growth — definitely one to keep an eye on.

And over in the US, Klarna, the BNPL giant, is making moves towards a $20 billion stock market debut. Looks like the world of finance and tech is heating up with some serious innovation and investment!

Insights & Reports

Payment Trends 2024 — Regulatory initiatives spark payment innovation and robust security

Motivated by the move to cashless economies, regulators push for innovation that enhances customer experience and convenience.

With an eye on driving modernization and collaboration, payment regulators worldwide strategized and formulated directives, such as the European Commission’s Payment Services Directives. The draft PSD3 will merge the existing PSD2 with the Electronic Money Directive (EMD2) and provide rules for the authorization and supervision of non-bank payment service providers in the EU.

European Union regulators have balanced flexible directives to create a unified payments market throughout the European Economic Area (EEA) a and beyond — working to ensure strong customer authentication and a level playing field among incumbent financial institutions, FinTechs, and BigTechs.

As some BigTechs blur traditional lines that have separated banking and payments from commercial activities. In late 2023, the US Consumer Financial Protection Bureau (CFPB), in late 2023, proposed federal oversight of BigTechs that offer digital wallets and payment apps.

Emerging markets are a step ahead of developed economies with payment industry advancements. Regulators and industry bodies are championing low-cost, high-speed payments. Fundamental shifts in client expectations and available technology, coupled with a competitive proliferation of new payment providers and infrastructures, are fueling transformation.

A transformational climate and demand for instant payments encouraged the 2021 launch of SWIFT Go, which offers a seamless payment experience for low-value transactions. These transactions are typically initiated by small- and medium-sized enterprises (SMEs) for paying overseas suppliers, as well as by consumers sending money internationally to friends and family. SWIFT Go builds on the high-speed rails of SWIFT gpi, which augments high-value international payments predictability with speed, traceability, and transparency.

Insight continues…

Prime Time for Real-Time Global Payments

This year’s findings reveal markets moving to maturity as 2023 reaches a record-breaking high

Real-time payments accounted for 266.2 billion transactions globally in 2023, a year-over-year growth of 42.2%. This shift toward more sustainable growth levels is as expected as countries move beyond early adoption — typified by extreme growth — to maturity.

This year’s findings reveal:

🔹 The power of collaboration between governments, fruit, resulting in wider domestic reach and exciting new use cases.

🔹 Merchants and consumers are now embracing real-time payments through apps, QR codes and mobile wallets.

🔹 Countries with the most to gain — those with large populations, cash economies, low use of credit and poor inclusion — have led the way in establishing real-time payments for daily use.

🔹 The next big real-time frontier will be seizing the opportunities created by international trade and migrations to build new real-time remittance and cross-border payment corridors.

👉 Markets where real-time is mainstream have knowledge to share

Insight continues…

Curated News

AI-powered Panax raises $15m to reshape cash flow management

Panax, an innovative FinTech, has successfully raised $15 million in its latest funding round. The investment was led by Team8 and TLV Partners.

News Continues…



Sam Boboev

I am a fintech enthusiast and product leader passionate about crafting simple solutions for complex problems. Subscribe