Payments in 2024: Change and Opportunity Throughout the Industry_

Despite economic uncertainty, consumer spending is strong, and innovative payment solutions are helping drive this growth. And as we look ahead to 2024, one thing is certain: Payments will continue their rapid evolution. Here are our expert predictions for how this will unfold in the coming year.

Running the Numbers_

69%

of consumers are excited to try new payment technologies

50%

of merchants use a software vendor as their payment provider

3x

increase in Gen Z’s global share of retail spend by 2030

30%

of companies report using AI to enhance their product offerings

25%

of Americans are comfortable using biometric payments

What’s Ahead for Payments in 2024?_

With a wealth of experience, our leaders are deciphering the current economic, market and regulatory trends to provide insights on what it all means for the future of payments. Their 2024 predictions cover monetization opportunities, customer preferences, the impact of AI and evolving regulations. Here’s how they see it evolving in specific:
  • Biometric payments gain consumer trust and wider adoption, and 25% of Americans already say they’re comfortable with using biometric payments
  • Embedded payments and finance emerge as key channels, with 50% of merchants already using a software vendor for payments
  • Digital omnichannel commerce becomes table stakes for merchants, as 69% of consumers say they’re excited to try new payment technologies
  • Gen Z takes the lead in driving industry trends and growth, as their spend is set to triple by 2030
  • Increasingly complex government regulation creates challenges and opportunities, as multiple regulatory changes are either imminent or in development
  • Artificial intelligence (AI) becomes a critical payments technology, with 30% of companies already using it to enhance their offerings

See What Our NMI C-Suite Is Saying_

Vijay Sondhi Chief Executive Officer, NMI

On Security & Gen
Security and reliability will continue to be critical, even as payments become simpler on the surface. In the past, data and transactional security were assumed to be a given. That is no longer the case. Not only is there an increased risk of data breach, but young consumers, like Gen Z, are very cognisant of security. As digital natives, they have to be. In 2024, we need to lock down security and clearly communicate the steps we are taking.

Kate Hampton
Chief Strategy Officer, NMI

Transparency and context for the consumer will become extremely important, namely on the banking side. That means sharing data where the consumer allows it and adopting a more transparent approach to general data use. The U.S. ecosystem is very fragmented, and the consumer has to piece together a picture from multiple sources. We need to start improving that as an industry, both for the good of consumers and because regulation is only going to get tighter and tighter.

See What Our NMI C-Suite Is Saying_

Vijay Sondhi Chief Executive Officer, NMI

On Security & Gen Z Security and reliability will continue to be critical, even as payments become simpler on the surface. In the past, data and transactional security were assumed to be a given. That is no longer the case. Not only is there an increased risk of data breach, but young consumers, like Gen Z, are very cognisant of security. As digital natives, they have to be. In 2024, we need to lock down security and clearly communicate the steps we are taking.

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On Transparency

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Transparency and context for the consumer will become extremely important, namely on the banking side. That means sharing data where the consumer allows it and adopting a more transparent approach to general data use. The U.S. ecosystem is very fragmented, and the consumer has to piece together a picture from multiple sources. We need to start improving that as an industry, both for the good of consumers and because regulation is only going to get tighter and tighter.

On Transparency

Transparency and context for the consumer will become extremely important, namely on the banking side. That means sharing data where the consumer allows it and adopting a more transparent approach to general data use. The U.S. ecosystem is very fragmented, and the consumer has to piece together a picture from multiple sources. We need to start improving that as an industry, both for the good of consumers and because regulation is only going to get tighter and tighter.
Chief Strategy Officer, NMI

On Transparency

Transparency and context for the consumer will become extremely important, namely on the banking side. That means sharing data where the consumer allows it and adopting a more transparent approach to general data use. The U.S. ecosystem is very fragmented, and the consumer has to piece together a picture from multiple sources. We need to start improving that as an industry, both for the good of consumers and because regulation is only going to get tighter and tighter.

On Buy Now, Pay Later

Buy now, pay later (BNPL) is the new way to shop, and we’ll see it continue to grow throughout 2024. Hugely popular among younger consumers who want more flexibility and control over their spending, BNPL is being used for big-ticket items like furniture, electronics or travel as well as everyday expenses like groceries. Why use credit or debit cards when you can pay in installments with no interest or fees? With BNPL, you can manage your budget and avoid credit card debt, which is especially important in times of economic uncertainty. Going forward, it will have to be a seamlessly integrated part of any complete omnichannel shopping experience.

On Buy Now, Pay Later

Buy now, pay later (BNPL) is the new way to shop, and we’ll see it continue to grow throughout 2024. Hugely popular among younger consumers who want more flexibility and control over their spending, BNPL is being used for big-ticket items like furniture, electronics or travel as well as everyday expenses like groceries. Why use credit or debit cards when you can pay in installments with no interest or fees? With BNPL, you can manage your budget and avoid credit card debt, which is especially important in times of economic uncertainty. Going forward, it will have to be a seamlessly integrated part of any complete omnichannel shopping experience.

On Transparency

Transparency and context for the consumer will become extremely important, namely on the banking side. That means sharing data where the consumer allows it and adopting a more transparent approach to general data use. The U.S. ecosystem is very fragmented, and the consumer has to piece together a picture from multiple sources. We need to start improving that as an industry, both for the good of consumers and because regulation is only going to get tighter and tighter.

On Transparency

Buy now, pay later (BNPL) is the new way to shop, and we’ll see it continue to grow throughout 2024. Hugely popular among younger consumers who want more flexibility and control over their spending, BNPL is being used for big-ticket items like furniture, electronics or travel as well as everyday expenses like groceries. Why use credit or debit cards when you can pay in installments with no interest or fees? With BNPL, you can manage your budget and avoid credit card debt, which is especially important in times of economic uncertainty. Going forward, it will have to be a seamlessly integrated part of any complete omnichannel shopping experience.
Kate Hampton
Chief Strategy Officer, NMI

On Transparency

Transparency and context for the consumer will become extremely important, namely on the banking side. That means sharing data where the consumer allows it and adopting a more transparent approach to general data use. The U.S. ecosystem is very fragmented, and the consumer has to piece together a picture from multiple sources. We need to start improving that as an industry, both for the good of consumers and because regulation is only going to get tighter and tighter.