Galileo, a Fintech payments company, recently shared a series of predictions for the trends that will shape payments in 2022.
The payments space was undoubtedly influenced by the COVID-19 pandemic, with innovation accelerated out of necessity and towards a more human-oriented and connected finance industry.
Expect more embedded financial solutions, driven by the consumer’s need for convenience and trust. Those consumers prefer to work within brands and devices they already trust with their data
“The opportunity to capitalize on consumers’ desire to engage with their finances directly through a streaming provider, retail shopping app or enterprise software solution is there for brands who want it,” Galileo said.
The market opportunity in this sector is expected to exceed $7 trillion by the decade’s end. Look for more tools such as point-of-sale loans, insurance or rewards products that produce more impact for customers.
Deeper integrations are another way for companies to more quickly deliver value by bringing together disparate data pools. Instead of just financing a car purchase, the provider can seek to provide value by taking the customer’s typical day-to-day usage, history, vehicle choice and driving style into account. Consider such elements as integrated purchase, funding, insurance, and rewards offering new value propositions.
There will also be more collaboration across the industry as both parties see beyond competitive aspects to see the mutual benefits of working together as they grow to see the different ways they can combine talents. They see each other as specialists in their respective areas with skills to offer.
The capabilities of always-on payments will also grow, just as the pandemic has increased consumer expectations for the service. While the demand was first seen with individual payments, a similar shift is beginning to occur with business banking and business-to-business payments as those parties seek to reduce costs and hasten payment cycles through digital channels.
The momentum of blockchain technology will continue to build as it becomes more integrated into financial systems. The results will include cryptocurrency payment tools, trading tools, central-bank-backed digital currencies, NFTs powered by cryptocurrency as recognized assets,
And as ledgers to negotiate contracts and exchange value.
Look for the number of customer-centered experiences to grow. The smart companies will base their plans on customer feedback
“COVID-19 has ushered in an era of unparalleled convenience and personalization, and there is no turning back,” the report states. “Embedded finance, open ecosystems and greater collaboration will each play an important role in the creation of tailored, user-friendly financial services that put customer preferences and financial wellness front and center.”
“No matter how customers engage with their finances, human-centered design must be the priority.”