ON THE HORIZON - PAYMENTS
2022: THE YEAR OF AI SMART WALLETS, SUSTAINABLE BANKING, TILL-LESS SHOPPING, AND RETAIL BANKING INNOVATION
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BY IAN JOHNSON, SVP & MANAGING DIRECTOR FOR EUROPE, MARQETA
In the next year, we expect that we will continue to see great innovation in the payment sector – from AI-driven smart wallets to the growing adoption of till-less stores, highly-personalised services and more. Tis will set a new bar in terms of consumer expectations, while adding to the complexity of delivering payments services. Rising expectations will mean traditional financial services providers and fintechs will need to deliver a payment experience that is faster, more seamless, integrated and personalised than ever before. Tis pressure on speed and integration can present challenges for those relying solely on legacy systems, driving a need for more flexible, modern platforms.
Here are five core trends that I feel will have a major impact in the year ahead:
TILL-LESS STORES SIGNAL A NEW ERA IN PAYMENTS In 2022, till-less stores – such as those recently trialled by Tesco and Amazon – could start to become more common. In fact, 30 per cent of consumers surveyed recently have already used one. We could see other verticals adopting this model, helping to make the payments function increasingly invisible. For instance, restaurants and bars could use this method to help reduce queues and staffing issues, allowing them to just focus on service. To support this new wave of innovation, financial services firms should make sure their payments infrastructure is flexible enough to support new technologies as demand increases.
2022 WILL BE THE YEAR OF BANKING INNOVATION We could witness a burst of innovation that sees mainstream banks begin to catch up with more
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nimble challenger banks, taking on the disruptors at their own game. In recent years, larger retail banks have been working through several layers of governance, risk, data and technology challenges. Yet a lot of that hard work is done. We may soon see the fruits of their investments in a new wave of cutting-edge solutions. Next year, banks may start to look at the possibility of launching their own Buy Now, Pay Later (BNPL) solutions, and look at new products like flexible credit offerings, and more personalised services that will make payments easier, faster, and more personalised. When you consider the economies of scale that banks of this size can work to, this could be a real boost for digital payment innovation – so watch this space.
CREDIT INDUSTRY MAY UNDERGO A MAKEOVER OFFERING MORE CHOICE TO CONSUMERS Buy Now, Pay Later has caused consumer expectations to skyrocket, offering low interest, instantly awarded credit options. In 2022, I believe
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