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In my last guest post for 2022, park van plate of money coop provides predictions on how the payments industry will evolve in 2023.
Vanpraet is Moneycorp’s EMEA CEO. Moneycorp is a payments fintech with agility and dynamism backed by a strong foundation backed by his 40 years of experience in the payments market.
Moneycorp is focused on striking a balance between shaping the future of the payments industry and building meaningful relationships. We are committed to reducing friction and improving the payment process while offering competitive products to our clients.
As CEO of EMEA, Vanpraet is responsible for driving the respective UK and European businesses, including the rollout of existing and new Moneycorp products and services, and growing Moneycorp into a peripheral services provider in the payments and banking sector. there is.
With over 30 years of experience in the technology market, Vanpraet has helped enhance the value of global technology brands including: Xerox, Hewlett packard When easynet/Sky.
Vanpraet, which entered the fintech industry nearly 12 years ago, global collection/ingenico When Credrax/Finalo.
Here Vanpraet details the growth of modern payment methods and how they open up entirely new benefits for consumers, and examines the changing regulatory landscape surrounding them.
As the world emerges from the effects of the pandemic, many industries have seen irreversible changes in how they meet customer demands. As one of these groups, fintech has undergone various drastic changes throughout his 2022.
Of all of them, the most pervasive trend to follow this year is the rise of blockchain technology. Being the underlying technology for digital assets, industry players are keen to utilize it to decentralize financial services and apply it to cross-border remittances.
Despite a tough year for digital assets, 2 trillion dollars With the crypto-economy and upcoming regulations swept away, blockchain technology will continue to grow as it develops further applications within and beyond the fintech space.
Embedded finance, another major topic for 2022, has gained popularity as changes that would otherwise take years to implement accelerate. However, this rapid rise of digital payments and online banking has raised significant security challenges of identity verification and the ability to combat money laundering.
An automated Know-Your-Consumer (KYC) solution has been developed to address this issue. This allows us to converge billions of data points to make way for a more rigorous and secure compliance process, ultimately removing many layers of complexity to serve more users. . -Friendly and customer-focused value.
This advancement to the digital experience of the financial industry Growth and an optimistic outlook It enables partnerships between fintech companies and traditional financial institutions, increasing convenience and flexibility for end-users. Given the number of trends and movements in this space, it’s safe to say that nothing beats the payments revolution.
However, 2022 was only the beginning of financial transformation. With many trials and developments of these technologies setting the foundation for the industry, 2023 will be a real test for modern fintech as many of the upcoming trends are the result of the events of the previous year.
Among the major events of 2022 are early signs of a global recession, which will undoubtedly affect the industry and beyond in the form of increased regulation, but are not properly navigated. Once set, the regulation will be combined with international opportunities for B2B payments and blockchain to enable fintech to thrive.
2022 will be the year of explosive growth and innovation for fintechs, resulting in greater attention from regulators to fintech companies and payment providers. The proliferation of non-banks providing financial services has reached a tipping point, and regulators are stepping up their scrutiny of these companies.
Looking ahead to 2023, regulators will require more scrutiny of non-banks that provide financial services to consumers to ensure data is adequately protected under compliance and consumer protection laws.
Meanwhile, regulators must find ways to support innovative financial services that offer alternative solutions to underserved customers, but impose some restrictions on these companies. .
In the U.S., officials from the Office of the Comptroller of the Currency (OCC) have already begun to do so, saying they are dedicated to working closely with fintechs to develop regulations, but this has yet to be seen to be effective. Is not.
B2B cross-border remittances in 2022 saw a massive push to match the ease of use of consumer services, boosted by improvements in B2C payment experience and convenience. Combined with consumer demand for faster and more competitive pricing and the increasing importance of globalization, there is an overall increase in demand for cross-border payments. .
To meet these rapidly changing demands in 2023, digital payment providers will need to implement more diversity of payment solutions through investments in APIs, with the goal of increasing the efficiency of international B2B payments. I have.
In doing so, payments companies can prepare for the global macroeconomic volatility and volatility that is coming in 2023. Through more efficient cross-border payments, B2B payment providers can provide the support and value businesses need as investment strategies change and supplier chains reconfigure.
Despite the challenges digital assets faced this year, blockchain technology will be the future of the fintech industry.
Throughout 2022, we have witnessed the early stages and growth of this revolutionary technology, showing many industry players the value and potential it can bring to fintech companies through decentralized finance and smart contracts.
As we move into 2023, blockchain technology will begin to take off and businesses will begin to push the boundaries of what was possible through their use. Smart contracts have strong potential to create the convenience of B2B international payments coveted by enterprises, and enterprises will seek new ways to popularize and optimize smart contracts for cross-border remittance systems. I guess.
Whether for payments, KYC, transfers, or any other purpose, blockchain technology will percolate across industries and be the foundation for many of the innovations slated for 2023.
One of the biggest changes heading into 2023 is the debate over recession and inflation. Perhaps more than any other industry, fintech and payments are closely linked to global economic conditions, so central bank developments and global recession fears should be watched closely.
Unfortunately, this means investors are taking a more cautious approach and becoming more selective in the companies they invest in. This has already been done and will continue next year, reducing the number of players in the payments space. Causing industry consolidation.
Meanwhile, the overall outlook for payments remains bright, but will favor more cash-rich and financially stable companies than ever before.
Fintech companies are a powerful group, and despite the major threats looming, many will continue to innovate based on new technologies that have begun to blossom in 2022. Understanding volatility properly and making the most of it is critical for these companies to thrive. A global recession is likely in 2023.
Some companies may want to enter emerging markets in Latin America, the Middle East and Africa and establish a name there before other players flood the market.
The overall outlook for 2023 looks like a difficult year for payments and fintech, but companies that can capitalize on these ongoing trends to come out on the other side will see their market positions thrive. will be solidified.
