What are the Payment Trends to Watch in 2024?

The payment landscape is continuously evolving, with new technologies and consumer preferences shaping the future of transactions. As business owners, it’s crucial you stay up-to-date on the latest payment trends to meet shifting customer demands and provide the best checkout experiences. In this blog post, we will explore 5 key payment trends that are expected to impact businesses in 2024: mobile wallets, peer-to-peer (P2P) payment apps, social media payment, Buy Now, Pay Later (BNPL), and cryptocurrencies.

1. Mobile Wallets

Mobile wallets are digital versions of traditional wallets designed to store payment information on a mobile device. As mobile wallets like Apple Pay and Google Pay continue to gain popularity for easy tap-and-go payments, an emerging voice-powered payment trend leverages similar contactless payment mechanisms for even greater convenience.

Voice-powered payments allow customers to checkout using simple voice commands with services like Amazon Alexa and Google Assistant. The natural language processing power behind voice assistants enables secure voice identification and seamless payment confirmation without pulling out a phone or wallet. This hands-free, hassle-free payment method provides the ultimate checkout convenience that builds upon the tap-to-pay benefits that have made mobile wallets a hit with consumers.

Mobile wallets are evolving rapidly with several key trends and enhanced security features, like biometric authentication. Contactless payments through NFC technology are on the rise, offering quick and convenient transactions. As consumer payment preferences shift toward mobile and digital formats, it is crucial for retailer business owners to accept contactless payments. By integrating a retail point of sale system that seamlessly accepts such mobile payments, retailers can provide faster, more convenient checkout experiences.

Choosing the right retail POS kit and software compatibility is paramount for enabling mobile wallet functionality. The right POS system ensures mobile payments are processed securely and allows business owners to track associated analytics. With customers increasingly relying on their smart devices for in-store purchasing, adaptive POS solutions let retailers participate in this mobile payment movement.

2. P2P (Peer-to-Peer) Payment Apps

P2P payment, also sometimes referred to as person-to-person payment, is a digital transaction where individuals send and receive money directly from each other without needing an intermediary like a bank or credit card company. These transactions are typically facilitated by mobile apps or online platforms that link users’ bank accounts or debit/credit cards. Mobile payment apps like Paypal, Venmo, and CashApp allow you to split bills, pay friends, etc, quickly. These link to your bank account or cards. Payment services like Zelle let you make bank-linked transfers via your bank’s mobile app or website.

Despite their widespread use, a common criticism revolves around the potential for fraud, as these apps can be exploited in scams and phishing attacks. To address this concern, ongoing innovations in the P2P space aim to enhance security by adopting measures like widespread biometric authentication. In general, P2P transactions are cost-free, involving direct payments from the P2P account or a linked bank account.

However, certain providers may impose a 2-3% fee for transactions funded through a credit or debit card. Additionally, some lesser-known advantages of P2P include the availability of optional debit cards from specific providers, allowing users to spend their balance. Furthermore, Google Pay integration with your Google Account provides another convenient aspect of P2P functionality.

3. Social Media Payment Trends

Social retail is a powerful force in the industry. And now shopper have the ability to make financial transactions or payments straight through social media platforms. Social commerce generated about $728 billion in the U.S. in revenue in 2022. Social media payment trends involve the evolving ways in which users can transfer money, make purchases, or engage in financial activities within the context of social media networks.

Businesses can set up accounts on Facebook, TikTok, and Instagram, where consumers can directly purchase products. Key trends in social media payments to watch include a few key items:

• Subscription services: Social media platforms may offer subscription-based services, where users pay a recurring fee for premium content or features. This can include exclusive access to certain posts, badges, or other perks.
• In-app purchases: Many social media platforms now allow users to purchase directly within the app. This can include buying virtual goods, premium features, or even physical products. They could also include more features to simplify the checkout process for retailers and clients.
• eCommerce integrations: Social media platforms are becoming more integrated with eCommerce functionalities. Users can discover products on social media and make purchases without leaving the platform.

4. Buy Now, Pay Later (BNPL)

BNPL is a type of short-term financing that allows consumers to make purchases and pay for them later. BNPL is generally structured like an installment plan or money lending process that involves consumers, financiers, and merchants.

How does BNPL work? First, the consumer selects a BNPL provider and agrees to the terms of the financing agreement. Second, if required, the consumer makes a down payment, and the remaining balance is split into installments. Finally, the consumer pays off the installments over a set period, typically with no interest or fees.

The rapid adoption of Buy Now and Pay Later in the B2B domain, alongside its widespread use in the B2C sector, positions it as one of the swiftest expanding trends in digital payments. Projections indicate that the global BNPL market is poised to witness a yearly growth rate of 26% between 2022 and 2030, ultimately attaining a market value of $39.41 billion by the year 2030.

More and more merchants will accept BNPL to offer their customers a more convenient and affordable way to pay. The United States had the highest number of merchants offering Klarna until 2023. Moreover, 13% of holiday shoppers between the ages of 18 and 34 choose a BNPL service as their financing option. Meanwhile, only 5% of holiday shoppers who are above the age of 55 plan on using this service.

5. Cryptocurrency Payments

Cryptocurrency payments refer to transactions made using digital currencies, often decentralized ones based on blockchain technology. Unlike traditional currencies issued and regulated by governments, cryptocurrencies operate on decentralized networks using cryptography to secure transactions and control the creation of new units. Bitcoin, Ethereum, and various altcoins are examples of payment cryptocurrencies.

There are some key trends to watch for with cryptocurrency payments in 2024:

• Increased merchant adoption: As the technology matures and becomes more mainstream, more retailers and businesses are expected to start accepting cryptocurrencies like Bitcoin as a valid form of payment in 2024 Platforms making it easier for merchants to accept crypto will further fuel adoption.
• Growth of stablecoins: Stablecoins, which are cryptocurrencies pegged to assets like the U.S. dollar to reduce volatility, will likely see strong growth for payment usage in 2024. Major stablecoins leading this include Tether, USD Coin, and Binance USD.
• Development of Central Bank Digital Currencies (CBDCs): Many major central banks are researching and developing CBDCs, which are digital forms of fiat money. Depending on their design, launching major CBDCs could significantly impact the crypto payments landscape.
• Scaling improvements enabling faster transactions: Upgrades that increase transaction speeds and lower fees for cryptos like Bitcoin and Ethereum will make cryptocurrency payments faster and cheaper overall. Key upgrades to monitor are the Bitcoin Lightning Network and Ethereum’s move to proof-of-stake consensus.
• Integration of crypto by fintech apps and neo-banks: More financial technology apps and digital banking providers will likely add support for crypto-based payments and wallets in their platforms as crypto continues going mainstream.

Upgrade Your Business Payment Capacities With KORONA POS

Upgrading business payment capacities with KORONA POS presents a multifaceted advantage that goes beyond traditional point of sale systems. One of the standout features is its processing-agnostic nature, allowing seamless integration with any major processor. 

KORONA POS empowers businesses with a comprehensive suite of payment capabilities. Contactless NFC payments and EMV chip payments enhance transaction security and cater to the growing demand for modern payment methods, providing a frictionless experience for customers. Additionally, the system’s robust cash control feature ensures accurate handling of physical currency, promoting transparency and reducing the risk of errors in cash transactions.

Moreover, KORONA POS extends its capabilities beyond the point of sale, offering valuable features such as employee time tracking, omnichannel selling, eCommerce POS integration, and self-checkout kiosks. This holistic approach streamlines business operations, improves efficiency, and creates a cohesive experience across various customer touchpoints. Click below to get started with KORONA POS.