Thanks to the constant digital advancements, making payments has never been easier. Instead of having to search for the closest ATM or scrounging for loose change, all we need to do is tap our credit card at the point of sale. Even at this level of convenience, though, there’s still a sense that things could be even easier, safer, and more flexible in the future.
Want to know what’s next for payment technology? Here’s our list of the four huge payment trends that should be on your radar in 2024.
1. Buy Now, Pay Later
Buy Now, Pay Later (BNPL) is a form of loan that’s usually structured like an installment plan. A relatively recent trend, BNPL has been rapidly adopted in B2B and B2C domains. Projections show that this trend will continue to accelerate with a yearly growth rate of 26%. By the year 2030, BNPL is expected to reach a market value of close to $40 billion.
Adopting BNPL is particularly relevant to U.S. merchants. Studies show that 13% of holiday shoppers between the ages of 18 and 34 choose BNPL as their preferred financing option.
2. Biometric Payments
Speaking of emerging digital transactions, biometric payments are near the top of this list as well. Not that long ago, this type of transaction was used almost solely by law enforcement agencies. Now, they’re everywhere, to the point that Visa and Mastercard are offering biometric cards. Experts project this trend to keep growing well into 2024 and beyond.
The reason biometric technology is so popular is that it makes it very easy for customers to identify themselves. In general, the more convenient a trend is, the more ubiquitous it will be.
3. AI in AR
In recent years, virtual brick-and-mortar-like experiences seem to have hit a stride with shoppers. In 2024, many businesses are willing to go one step further and add augmented reality (AR) tools to their virtual shopping experiences. This is made possible due to AI, which is fully capable of recognizing speech and adapting to users’ behaviors.
AI plays a key role behind the scenes as well. Thanks to optimized routing tools, AI can speed up approvals, reduce chargebacks, and create a more streamlined shopping experience.
4. Social Commerce
It’s hard to deny that social media platforms have completely changed our outlook on shopping. From TikTok to Instagram, more and more consumers are turning to social media to learn more about the trendy products and then use the platforms to purchase said products. Businesses are fully aware of this trend and are trying to milk it for all it’s worth.
In 2023, for example, TikTok launched its official TikTok Shop. In 2024, the shop should become available in most of the world and significantly expand its product repertoire.