Marqeta executives predict that artificial intelligence (AI), the evolution of credit cards, and the increasing demand for customer choice will be important trends in 2024.
CEO Simon Khalaf said the boring old credit card should get a facelift next year. While proving extremely popular, with more than 570 million in circulation in the United States alone, Khalaf said credit cards have been one-size-fits-all. That is about to change.
“In 2024, I expect to see a transformation driven by the proliferation of embedded credit capabilities that allow brands to integrate customized rewards into their shopping experiences and extend their reach beyond their own properties and turn every payment action into a loyalty and re-engagement moment,” Khalaf said.
“Marqeta’s research shows that 74% of US consumers believe there is room to personalize rewards based on individual spending habits, showing the demand for credit providers to create individualized rewards and credit experiences. Anticipate this consumer-driven expectation to compel more brands to offer financial services and venture into offering credit themselves, paving the way for co-branded card experiences that move credit cards beyond a payment tool and into the homepage of a brand’s digital experience.”
Chief Revenue Officer Todd Pollak said consumers want more options for financial services. In 2024, this expectation will extend beyond traditional financial brands to embedded finance.
“The embedded finance opportunity is expected to exceed $7 trillion worth of total US transactions in 2026, and Marqeta’s research shows that 56% of US consumers express interest in sourcing their financial services from non-financial providers,” Pollak said. “This data underscores the demand for financial services to be available within the brands consumers love most, opening the door for new innovation and diversification.”
Pollak said that embedded finance will deepen its capabilities in 2024. Accelerated wage access, SMB credit, and co-branded credit cards have the potential to reshape how consumers both pay and get paid. This should improve financial access for millions of people.
AI will be a main driver on multiple fronts, including improving economic equity. CTO Randy Kern said that improved equity will come from better credit access.
“Generative AI has the capacity to analyze troves of transaction data and trends, allowing credit providers to effectively assess credit risks and make underwriting decisions on a transaction-by-transaction basis,” Kern explained. “Using generative AI’s power to analyze anonymized data levels the playing field and creates greater financial access and opportunities for equity.”
Chief marketing officer Karna Crawford sees AI redefining the customer’s experience with money in 2024. Crawford suggests the early winners being brands that adeptly blend CX and AI to create transformative and personalized financial products.
“This will substantially accelerate embedded finance, empowering brands to build personalized financial offerings, such as new incentives or rewards based on customer data and individuals or budget tools that help people achieve their financial goals and integrate with the card experiences,” Crawford predicted. “By creating hyper-personalized offerings, brands will set new standards for engagement and build the foundation for lasting customer relationships.”