A survey by HTF Market Intelligence revealed that the Global Payment gateway market will significantly surge at a CAGR of 22.2% between 2023 and 2029. Here are a few tech trends from the survey that are bringing the change.
Several robust technologies like pay–as–you–go models, comprehensive cloud infrastructure and AI-powered compliance continue to reshape the BFSI industry. Emerging economies are also joining this race towards digital transformation by incorporating various cross-border payment capabilities.
A survey by HTF Market Intelligence revealed that the Global Payment gateway market will significantly surge at a CAGR of 22.2% between 2023 and 2029. Here are a few tech trends from the survey that are bringing the change.
Which tech trends are all set to bring digital transformation to payment gateways?
#1 Adoption of cloud computing and digitalisation will continue to surge
Banks and financial institutions will continue to adopt scalable cloud infrastructure to streamline their digital payment journeys. As a consequence, it will encourage secure and real-time online transactions via payment gateways, enabling customers to transfer their funds between accounts. Some global key players uplifting the change are PayPal, Stripe, Worldpay, and Fiserv.
#2 Demand for cross-border payments and global transactions will rise
With a vision to simplify cross-border payment facilities, the BFSI leaders will introduce centralised systems for seamless currency exchange. As a repercussion, it will reduce the cost of foreign exchange rates and financial risks that were, however, associated with cross-border transactions.
For instance, the European Union Payment Services Directive (PSD2) incorporated APIs for central bank digital currencies (CBDCs) to optimise cross-border payment infrastructure. These innovations are elevating the economies of developing countries.
#3 Government initiatives to promote cashless transactions will increase
In an ever-growing ecosystem where digital transactions are preferred over cash payments, governments of various countries will promote cashless exchanges. For example, recently, the Indian government signed a pact with the UAE government to link UPI with AANI. The counties also signed an MoU(Memorandum of Understanding) for inter-linking their domestic debit/credit cards- RuPay from India and JAYWAN from the UAE.
Also Read: Mainframe or Gen-AI Powered Cloud Environments: What Do Banks Prefer?
#4 Subscription-based models and recurring payments integration will take centre stage
Subscription-based models continue to gain traction across various industries, including the BFSI sector. All thanks to the hassle-free and secure recurring payment facilities they offer. It will further see various synergies between banks and fintech providers to introduce seamless and automated money collection capabilities. For example, UAE’s Careem App works on a similar model.
#5 Focus on enhancing security and fraud prevention measures will become prominent
As malicious actors are implying innovative tactics to access users’ sensitive information, the need to implement robust fraud detection measures has also increased. Key players in the payment gateway industry will become more vigilant towards these cyber vulnerabilities, further integrating AI-powered fraud detection capabilities in near real-time.
For instance, Mastercard announced the creation of its Gen-AI-powered model to detect and eliminate fraudulent transactions across its network of thousands of institutions.
Summing it up, Global economies will continue to thrive in a world of cashless transactions. Key players will integrate innovative strategies to ensure seamless and secure digital payments, incorporating prominent fraud prevention measures within their systems.
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