Competitive software companies are looking back at 2023 and identifying market and tech trends gaining momentum for 2024 to help them plan. Using those insights, ISVs can develop new solution features that users demand and increase the value that their software provides. However, if your software integrates with a payments solution, you need to consider payment trends as well as what users are looking for from your core solution.
Consider these stats and facts about the direction the rapidly changing payments space is heading as you create your roadmap for 2024.
Payment Trends ISVs Should Watch
Mastercard research reveals that more than half of all U.S. consumers now use contactless payments. In 2024, look for the contactless payment trend to advance to the next level of accessibility and adoption. Soft POS, also known as tap-to-mobile or tap-to-phone, allows merchants to use their smartphones to accept contactless payments.
It’s secure, complying with Payment Card Industry (PCI) standards for mobile payments on commercial off-the-shelf devices.
This technology is poised to disrupt the industry, enabling merchants of all sizes to use mobile devices to complement existing systems or to accept contactless payments at roadside stands, food truck counters, after rideshares, pop-up shops, event concessions, and more. It can also benefit ISVs with increased transaction volume and residuals.
Worldwide, soft POS is predicted to grow at an impressive 20.4% CAGR through 2030 to reach $1,077 million.
- Alternative Payment Methods
Consumers demand payment choices, even considering the payment methods a merchant accepts when making buying decisions. The flexibility you provide your clients will enable them to provide the payment convenience consumers are looking for – and enhance the value merchants perceive in your solutions.
Payment trends to align with in 2024 include buy now, pay later (BNPL). This payment method allows consumers to split payments for large-ticket items into three or for installments, making them more budget-friendly. It may also help your clients capture more revenues as inflation remains higher than usual. Analysts predict that the BNPL market will grow from $71.9 billion in 2023 to $80.8 billion in 2024.
Also, look for more consumers, particularly millennials and Gen Z, to pay with peer-to-peer apps like Venmo and PayPal. Drivers of this market, set to increase worldwide by an 18.10% CAGR to reach $11.62 trillion by 2032, are growing smartphone use for shopping and the payment method’s simplicity, ease of use, and convenience.
- Mobile Point of Sale (mPOS)
Your clients will continue to focus on optimizing customer experiences, offering more convenience, and decreasing wait times by accepting payments everywhere. They’ll look for ways to conduct transactions everywhere within the four walls of their retail locations, from the fitting room and in the aisles as well as at the checkout counter. Some of your clients will even look for ways to accept payments outside, for example, line-busting in the drive-thru or selling at a pop-up shop during an event.
Learn how –and where – your clients are engaging customers and ensure your solutions support convenient, secure payments for each use case.
- Biometric Payments
Keep an eye on the biometric payment trend in 2024. This category of payment methods that use consumers’ physical characteristics to authenticate transactions is set to grow at a 19% CAGR through 2026 to reach $19,000 million worldwide by 2026. Types of biometric payments include fingerprint authentication, facial scans, and infrared (IR) palm vein scanning.
Consumers who create an account, securely linking their scans to account information, can make payments even if they don’t carry physical cards or even a purse or wallet. Merchants benefit from the loyalty of consumers who prefer this payment method and less payment fraud.
Partnership Is Everything
Payment trends indicate that consumers want more payment choices and convenience. However, keeping up with changes as new technologies emerge and consumer behaviors evolve is challenging for ISVs.
Fortunately, Ingenico has done much of the heavy lifting for you so that you can offer your clients soft POS, alternative payments, mobile POS, and biometric payments.
Contact us for more information about how to stay ahead of the curve in 2024.