2023 in review: Gen AI. Open banking. Real-time payments.

Wednesday, October 25, 2023 4 minute read

Bob Cortopassi

SEVP and President, International and Vertical Markets

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4 minute read

We’re in the midst of a digital revolution. This year, artificial intelligence (AI) dominated mainstream news, becoming a key focus of conversation in many industries. In the meantime, emerging technologies like blockchain, real-time payments and open banking continue to accelerate. And global consumers remain hesitant to adopt digital currencies or embrace virtual worlds.

But one thing remains constant: No matter where or how consumers make a payment—online, in app, in store or a combination—they want a consistent, seamless experience across all devices and platforms, 24/7/365.

Join us as we reflect on the trends shaping commerce and payments in 2023.

Open banking brings more collaboration between banks and fintechs

Open banking is gaining momentum worldwide, encouraging more collaboration between banks and fintechs. In fact, in 2019, only half of banks viewed fintech partnerships as important, according to a recent survey. Today, that number has risen to 89%.

of banks embrace fintech partnerships

Collaboration is key. And application programming interfaces (APIs) make it easier than ever. Open APIs enable banking data to be transmitted directly to a third party from a financial institution. Data that once was inaccessible to businesses and consumers is now “opening up,” providing enormous opportunities to collaborate.

Blockchain technology gains traction

Global blockchain technology in banking and financial services is expected to grow 62% this year. Global enterprises are using decentralised blockchain to track and move assets or make payments in real time. This gives them better control over their supply chains—and more efficient and economical cross-border B2B payments.

Decentralised finance (DeFi) in blockchain is also accelerating innovation in emerging technologies as more third-party tech companies enter the commerce space. This speeds up tech innovation and encourages more collaboration across industries. It truly is an exciting time in commerce!

Digital currency. Real-time payments. The metaverse.

Other trends in commerce and payments worth revisiting this year:

Digital currency. Currently, 130 countries representing 98% of the global economy are exploring central bank digital currencies (CBDCs). Almost half are in advanced, pilot or launch stages of development, but governments, businesses and consumers remain cautious around crypto.

Real-time payments. The global real-time payments (RTP) market will increase by more than $55 million from 2022 to 2027 with a compound annual growth rate (CAGR) of just over 31%. Increasing adoption of smartphones and more access to high-speed internet around the world are driving this market growth.

The Asia-Pacific region is leading real-time payments with a 70% contribution to global RTP growth this year. North America may also see an increase in RTP after the launch of FedNow’s Instant Payments in July. And in the UK, real-time payments are expected to take approximately 12.5% of the overall payments mix in the country—including both cash as well as cashless—by 2027.

The metaverse. Things seem to have quieted down in the metaverse as AI took the spotlight in 2023. And while funding for metaverse projects dropped 99% over last year, there’s still strong interest across many industries, from finance and technology to retail and entertainment.

Looking ahead to 2024

It’s been a propulsive year in payments and commerce. We anticipate 2024 will bring even more change, and we continue to be optimistic as digitisation opens up borders and data, making commerce easier and more accessible to people around the world.

Our 2024 trends report will go live very soon. This exclusive annual report will give your business the competitive advantage you need to stay ahead of emerging technologies in commerce and payments in 2024—and beyond. Be sure to sign up today.