RESEARCH INSTITUTEPAYMENTSTOP TRENDS 2024
January 2024

ELIAS GHANEMVIVEK SINGH

Global Head ofCapgemini Research Institute
Capgemini Financial Services

Head of Banking & Capital Markets
Capgemini Research Institutefor Financial Services

CAPGEMINI RESEARCH INSTITUTE FOR FINANCIAL SERVICES DELIVERS A BROAD RANGE OFSECTOR-SPECIFIC WORLD REPORTS AND TREND BOOKSWorld Reports

Trends Books

Voice of FS
Executives+ 1,500
Voice of Consumer+ 20,000Capgemini Top 10 Trends in 2024 | Payments

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Top Trends in Banking for 2024 by Capgemini

TOP 10 TRENDS IN BANKING BY SUB-DOMAINS
Customer FirstEnterprise Management

Intelligent Industry

WEALTH MANAGEMENTRETAIL BANKINGPAYMENTS

Increasingly influential affluent segment can boost the
top line for wealth management firms

Banks compete for customer deposits as they navigate
through business turbulence

Real-time treasury empowers corporate clients’decision-making and cash management capabilities

Fixed-income investing is back as a safe and profitablevehicle for wealth growth and stability

New-age players are switching gears
from hyper-growth to profits

Card alternatives – pay by bank and BNPL – are on the rise

Generative AI-based client engagement enriches theclient experience

Banks pamper affluent customers withpersonalized products and services

Cloud-native composable platforms enableback-end reimagination

Wealth management firms are capitalizing on the ongoingintergenerational wealth transfer

Banks expand ESG data use beyond compliance tostrategic decision-making

Digitalization will streamline
accounts payables/receivables processes

Wealth management firms are strategically embedding
social equity and inclusion to drive business outcomes

Digital operational resilience is a top priority as
cybersecurity threats increase

Local and regional payments initiatives may challenge thedominance of card schemes and interconnected payments
networks

After high-profile collapses, rebuilding trust is crucial for
digital assets’ next growth phase

Cost control is necessary to hedge against
economic volatility

Regulatory initiatives spark payment innovation androbust security

Asset tokenization enables a more efficient financial system

The next wave of innovation in cloud lies in edge computing,sovereign cloud, and cloud marketplaces

Instant payments offer a potential efficiency boost

Intelligent automation is a powerful efficiency enabler
across the entire value chain

Banks explore generative AI to elevate productivity

Central banks embrace CBDC to maximize financial inclusion

Digitalized client journeys are boosting productivity andstreamlining operational costs

Data is evolving from a proprietary asset to ashared, open resource

Tokenization opens new frontiers for value creation

Reliable and traceable ESG metrics are now a must

Decentralized finance continues to evolve; banks need to beready for soon-to-come regulatory frameworks

AI upside for payment services includes
productivity and client satisfaction

Capgemini Top 10 Trends in 2024 | Payments

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Top Trends in Payments for 2024 by Capgemini

PAYMENTS TOP TRENDS 2024 – PRIORITY MATRIX

2

Card alternatives – pay by bank and BNPL – are on the rise3

Cloud-native composable platforms enable back-end reimagination

4

Digitalization will streamline accounts payables/receivables processes

5

Local and regional payments initiatives may challenge the dominance of card schemes andinterconnected payments networks

6

Regulatory initiatives spark payment innovation and robust security

7

Instant payments offer a potential efficiency boost

8

Central banks embrace CBDC to maximize financial inclusion

9

Tokenization opens new frontiers for value creation

SIGNIFICANT

Real-time treasury empowers corporate clients’ decision-making and cash management capabilities

10

3

1

9

2

5

4

6

MEDIUM

1Intelligent Industry

HIGH

Enterprise Management

Adoption priority 2024

Customer First

10 AI upside for payment services includes productivity and client satisfaction

8

7

MEDIUMHIGH

SIGNIFICANT

Business impact 2024
The Priority Matrix presents Capgemini’s view of 2024 trend prioritization in an operating environment considering:
•
•
•

▪
▪

Softening inflation and high interest rates, coupled with stagflation trends
Geopolitical instability
Dynamic regulatory activity••

Intense competition and increased focus on customer centricity due to the impact of new-age players
Operational cost overruns and high capital lock-in

AdoptionpriorityThe criticality of adopting a2024trend to maximizevaluecreationbecause of its sector importance.
Business impact The effects of a trend on the sector’s 2024 business as it relates to customer experience, operational excellence, regulatory compliance, or profitability.
Circumstances will vary for each firm depending on business priorities, geographic location, and other factors. For more information, don’t hesitate to contact us at payments@capgemini.com.

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Top Trends in Payments for 2024 by Capgemini

FROM 2023 TO 2024, WHAT HAS CHANGED AND WHAT HAS NOT?
TRENDS 2023

TRENDS 2024
1

Real-time treasury empowers corporate clients’ decision-making and cash management capabilities

1

B2B Buy-Now-Pay-Later (BNPL) picks up momentum amid post-pandemic macroeconomics

2

Card alternatives – pay by bank and BNPL – are on the rise2

Embedded finance providers leverage customer data and actionable insights to unlock new use
cases

3

Cloud-native composable platforms enable back-end reimagination

3

Global adoption of ISO 20022 opens doors to data monetization

4

Digitalization will streamline accounts payables/receivables processes

4

Central banks gear up to pilot and implement CBDCs

5

Local and regional payments initiatives may challenge the dominance of card schemes andinterconnected payments networks

5

Composable architecture creates competitive advantage efficiencies

6

Regulatory initiatives spark payment innovation and robust security

6

Real-time cross-border payment rails will boost the speed and volume of regional trade

7

Instant payments offer a potential efficiency boost

7

An end-to-end ecosystem approach simplifies payment hub modernization

8

Central banks embrace CBDC to maximize financial inclusion

8

PayTech innovation and ecosystem partnerships focus on revamping SMB payments

9

Tokenization opens new frontiers for value creation

9

Tokenization – a multi-pronged approach for scalable and secure card payments infrastructure

10 AI upside for payment services includes productivity and client satisfaction
New trends

10 Eco-friendly cards, digital payments, and cloud-based payments hubs will boost sustainability

Trends evolution

Deprioritized trends▪ Real-time treasury will be a great tool for efficient cash
management and intelligent decision-making▪ New payment methods including BNPL and pay by bankcontinue to gain acceptance among consumers▪ Embedded finance has been fully adopted to gain customer
insights▪ Efficiency will be bolstered by the adoption of instant
payments▪ CBDC continues to be an area of focus for central banks▪ Real time cross border payments have been adopted by
payment firms globally▪ Use of AI and digitization will improve client satisfaction andstreamline back-end processes▪ Deglobalization will be a challenge for a global payment web
Capgemini Top 10 Trends in 2024 | Payments▪ Composable architectures are gaining acceptance among
payment firms for their efficiencies▪ Transaction security continues to evolve with DeFi andtokenization▪ Payment firms have successfully executed partnerships with
PayTechs for revamping SMB payments▪ Payment firms prioritized sustainability with product offers
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Top Trends in Payments for 2024 by Capgemini

TOKENIZATION OPENS NEW FRONTIERS FOR VALUE CREATION
Customer FirstEnterprise Management

Intelligent Industry

Payment firms are considering tokenization and blockchain-based decentralized finance systems to enhancetransaction security, while also exploring other applications

46%

51%

payment
firms are inadvancestages oftokenization

payment
firms
exploring
tokenization

Tokenization for
security and compliance30%
corporates
are inadvancestages oftokenization67%
corporates
exploring
tokenization

8
DeFi will help move payment processing to amore hybrid system, enabling payment providers
to be nimble and prepared to adapt to changing
transaction volumes more efficiently

10 3

1

9

2

4

6

5
7

Launched a cloudbased network
tokenization platform
in Q4 2023. This
platform offers
companies a scalable
and flexible token
solution to enhance
payment processsecurity and efficiency.

Source: Capgemini Research Institute for Financial Services analysis, 2023

Empowered by automated smart contracts, payment processors can minimize errors and misdirected payments,
and DeFi combined with tokenization is leading to innovative use cases such as deposit tokens and programmable payments.
Capgemini Top 10 Trends in 2024 | Payments

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Top Trends in Payments for 2024 by Capgemini

REAL-TIME TREASURY EMPOWERS CORPORATE CLIENTS’
DECISION-MAKING AND CASH MANAGEMENT CAPABILITIESCustomer FirstEnterprise Management

Intelligent Industry

Banks and payment firms are reinventing treasury using advanced technologies, disrupting theindustry with seamless, convenient, and swift transactions

Intercompany
swapping

Virtualaccount
management

Working
capitalefficiency

1

9

2

4

6

8
Risk
management

REAL TIME
TREASURY

Cash
forecasting

Netting

10 3

Application programming interfaces (APIs) canbe the core enabler for real-time treasury thathelps corporate clients reach decisions more
quickly and optimize cash management

5
7

Partnered with FinLync,
an aggregator of global
banking APIs, to deliver
embedded real-time
payments and cash
management in 2022 toprovide corporate clientswith instant access toreal-time treasury

Source: Capgemini Research Institute for Financial Services analysis, 2023

Banks can boost competitiveness and growth by providing real-time treasury services, facilitating swift decision-making
in corporate treasuries, cash management, risk mitigation, and liquidity enhancement.
Capgemini Top 10 Trends in 2024 | Payments

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Top Trends in Payments for 2024 by Capgemini

REGULATORY INITIATIVES SPARK PAYMENT INNOVATION AND
ROBUST SECURITY
Customer FirstEnterprise Management

Intelligent Industry

Ongoing regulatory efforts are fostering collaboration and innovation among payment firms
and service providers
2021

2022

2023

FedNow (US)2024 - 2025

>2026
E

I
I
I

E

E
I

I
E

E

Intermediate implementation of theinitiative/regulation

E

Full implementation of
the initiative/regulation

8

1

9

2

4

6

5
7

Elapsed time

I

I

I

10 3

I

I

I

IXB – Immediate Cross-Border Payments
SEA – Southeast Asia

Adopted Icon Solutions’
low-code Icon Payments
Framework (IPF) in
September 2023 to ensurealignment with ISO 20022
messaging standards

Source: Capgemini Research Institute for Financial Services analysis, 2023

ISO 20022 messaging format migration, CBDC pilots, the FedNow instant payment service, Variable Recurring Payments (VRP)and similar initiatives are driving innovation in developed markets.
Capgemini Top 10 Trends in 2024 | Payments

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Top Trends in Payments for 2024 by Capgemini

DIGITALIZATION WILL STREAMLINEACCOUNTS PAYABLES/RECEIVABLES PROCESSES
Customer FirstEnterprise Management

Intelligent Industry

Wide-ranging digital transformation benefits are encouraging payment providers and their corporateclients to automate accounts payable and accounts receivable processes

Automatedinvoicematching
E-contract
management

Reporting

Bulk
payments

Customerdata
analytics

AUTOMATEDACCOUNTSPAYABLEApprove
payments

Supplier
data
analytics

Suppliers’
compliancecheck

Creditscoring

Reporting

Payment
collection

AUTOMATEDACCOUNTSRECEIVABLES

Disputesmanagement

Digitalinvoicing

Rebates&
discounts

8

10 3

1

9

2

4

6

5
7

Corporate clients leveraging
Citibank’s VAM platform canaccess automated accountreceivables/payables,
among other features. In
2022, Citibank reported an
82% increase in virtual
account balance growththanks to 33% VAM
platform adoption.

Source: Capgemini Research Institute for Financial Services analysis, 2023

Automated accounts solutions expedite payments, provide cost savings, and with ongoing innovation,
anticipate increased enterprise demand for integration support to enhance payment capabilities during updates.
Capgemini Top 10 Trends in 2024 | Payments

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CLOUD-NATIVE COMPOSABLE PLATFORMS ENABLE
BACK-END REIMAGINATION
Customer FirstEnterprise Management

Intelligent Industry

Banks and other financial institutions are realizing that composable payment hub architecture is cost-efficientand enables the agility necessary to innovate even when paired with legacy systems
Payment factory/IHBs

Web portal

Enterprise clients
Single view
Corporate marketplace
CMS portal

SWIFT GPI/G4C

Host-to-hostMobileRobo-treasury

Payment
marketplaces

8

API

10 3

1

9

2

4

6

5
7

Value-added services
Banking-as-a-service platform

Enterprise liquidity management
Virtual account management
Core cash management capabilities

Mid-office

Reconciliation

Billing

Wallets

Reporting

Clearing andsettlement

Demanddeposits

Analytics

Pricing & FX

Lending

Trade finance

Assessment

Front office

Orchestration

Instant
payments

ACH/SEPA

Cash and liquidity
management

Data
warehouse

Omni-channel

Paymentshub

Onboarding

Commercial cards

Softwareas a Service

ExpandedSafeguard
its Microsoft
Launched
360,
Azure
partnership2022
integrating wholeinlife,
to migrate
more
than
long-termcare,andhalf
of itsapplications
onto
disability
incomeAzure’s
cloud
network
insurance in a single

policy.3

Back-office

Source: Capgemini Research Institute for Financial Services analysis, 2023

As cloud marketplaces and software-as-a-service offerings comply with ISO 20022 standards,
payment providers will find the additional impetus to migrate to composable structures.
Capgemini Top 10 Trends in 2024 | Payments

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Top Trends in Payments for 2024 by Capgemini

AI UPSIDE FOR PAYMENT SERVICES INCLUDESPRODUCTIVITY AND CLIENT SATISFACTION
Customer FirstEnterprise Management

Intelligent Industry

AI can help payment service providers boost customer personalization and grow revenue while
reducing fraud and safety risks

Spendcontrol andmanagement

Automateddocumentation

Fraud risk
management

AIinpayments

Real-time
creditdecisioning

Intelligent
payment
routing

Smartpayment
reconciliation

10 3

1

9

2

4

6

8
Our 2023 World Payments Report survey shows
53% of payment firms running multiple AI pilots
in cash management, with half of the executives
noting their firms are automating processes in
the cash management value chain.

5
7

Launched a new tool thatuses AI to help customers
manage their spending.
The SAP Spend Control
Tower shows customers
their spending data andhelps them find ways tosave money and improve
processes.

Source: Capgemini Research Institute for Financial Services analysis, 2023

As artificial intelligence becomes ingrained throughout the entire payments value chain, progress is observed infraud management, real-time transactions, customer experience, document management, and regulatory compliance.
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Top Trends in Payments for 2024 by Capgemini

LOCAL AND REGIONAL PAYMENTS INITIATIVES MAY CHALLENGE THE
DOMINANCE OF CARD SCHEMES AND INTERCONNECTED PAYMENTS NETWORKS
Customer FirstEnterprise Management

Intelligent Industry

Regional payments initiatives in silos can hinder the development of a compatible cross-border global
network that can streamline international trade
Interoperable
Quick Response(QR) system
between ASEAN
countries

IXB pilot
servicebetween
EU and the US

Nexus
gateway by
BIS

8Project
Icebreaker
betweenIsrael,Norway andSwedenREGIONAL
INITIATIVES

UnifiedPayments
Interface
In India

Project
Leonidasin Italy

10 3

1

9

2

4

6

5
7

Built a network prototype,
Nexus Gateway, tostandardize themultilateral linking of IP
systems. The pilot was
conducted in 2021 toconnect the systems ofEurope, Malaysia, andSingapore.

Source: Capgemini Research Institute for Financial Services analysis, 2023

As payment initiatives grow to include more countries regionally, a common framework must develop to allow for compatibility
between each of the regional payments networks to foster a seamless global system.
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Top Trends in Payments for 2024 by Capgemini

CARD ALTERNATIVES – PAY BY BANK AND BNPL – ARE ON THE RISE
Customer FirstEnterprise Management

Intelligent Industry

Traditional card payment leaders face challenges from emerging players using advanced technologies,
disrupting their longstanding dominance with seamless, convenient, and swift transactions

CUSTOMER

FinTechs& banks

BNPL

8

10 3

1

9

2

4

6

5
7

Pay bybank

Central banks
and payment
consortiums

Payment infrastructure

Payments
regulators

Regulations and compliancePartnered withMastercard in 2023 todevelopa
Launched
Safeguard
360,
BNPL initiative
integrating
wholethatlife,
allowsSoFi members
long-termcare, andto
splitapurchaseof USDdisability income
50insurance
to USD 500
into
four
in a single
3
interest-freepolicy.payments

Source: Capgemini Research Institute for Financial Services analysis, 2023

Increased use of alternative payments is set to enhance transaction speed and convenience. Account-to-account transfers,
addressing fraud risks, drive card issuers to incentivize customer retention amid the growing popularity of alternatives.
Capgemini Top 10 Trends in 2024 | Payments

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Top Trends in Payments for 2024 by Capgemini

INSTANT PAYMENTS OFFER A POTENTIAL EFFICIENCY BOOST
Customer FirstEnterprise Management

Intelligent Industry

Real-time payment networks operate 24/7 and provide numerous advantages, spanning from flexibility
to enhanced security

10 3

1

9

2

4

6

New payment adoption is on the rise
Total global non-cash
transactions volume

1,143.9 billion

~2X

21%
5%
15%

2,296.7 billion
28%
2%
17%

59%

54%

1%

1%

2022

2027F

Credit Transfers

Traditional digital
payment’s mix

Cards

New digital
payment’s mix

Instant Payments and e-Money Payments (incl. Wallets)(debit & credit)(Payer-driven
push transactions)8

Direct Debit(Payee-driven
pull transactions)

5
7Partnered with Empathy
to improve beneficiaryclaims support, address
bereavement care andprovide estate assistance.2

ChecksUnveiled its digital wallet
solution wero (we + euro)in October 2023. EPI aims
to officially launch weroby mid-2024 in Belgium,
France, and Germany,
followed by the
Netherlands.

Source: Capgemini Research Institute for Financial Services analysis, 2023

Instant payments are poised to transform the industry, offering convenience, speed, security, and cost-efficiency
while fostering innovation and competition through enhanced transparency and cross-border interoperability.
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Top Trends in Payments for 2024 by Capgemini

CENTRAL BANKS EMBRACE CBDC TO MAXIMIZE FINANCIAL INCLUSION
Customer FirstEnterprise Management

Intelligent Industry

Central banks globally are investing in a range of CBDC use cases and pilots

Increase safety
and efficiency

Deter crime

8
Remove the need for
middlemen

Impose no fees

Allow for financial
inclusion

10 3

1

9

2

4

6

5
7

Make monetary policies easier
to implement

Do not require costly
infrastructure

Secured by distributed ledger
technology

Concluded Project
Icebreaker in 2023 inpartnership with thecentral banks of Israel,
Norway, and Sweden to
demonstrate the efficacies
of a single-systemcross-border CBDC

Source: Capgemini Research Institute for Financial Services analysis, 2023

Widespread CBDC use may also spark financial inclusion of unbanked and underbanked populations by enabling access to liquidity and credit
offered via traditional finance systems.
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REACH OUT TO THE CAPGEMINI RESEARCH INSTITUTE FOR FINANCIAL SERVICESCONTACT US
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Capgemini Top 10 Trends in 2024 | Payments

ELIAS GHANEMVIVEK SINGH

Global Head
Capgemini Research Institutefor Financial Services
elias.ghanem@capgemini.com

Head of Banking & Capital Markets,
Capgemini Research Institutefor Financial Services
vivek-kumar.singh@capgemini.com

Capgemini Research Institute
Financial Services

Capgemini Research Institute
Financial Services

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