Industry Forecast for Cross-Border Payments Sector in 2024: 15 Anticipated Developments
In the rapidly evolving world of finance, the year 2024 is set to bring significant changes to cross-border payments, following the economic and geopolitical downturn in 2022. According to predictions published by FXC Intelligence, the industry is expected to see a shift in focus towards greater transparency, faster payments, and novel avenues for processing.
The predictions provided by the platform are divided into three main categories: geopolitical and social trends, technological advances, and industry evolution. While the specific predictions for each category remain undisclosed, some general trends and predictions can be inferred based on available information.
In the geopolitical and social trends category, an increased focus on transparency, greater cross-border integration of country-level payment systems, further de-dollarisation, more small businesses operating internationally, and the beginnings of a reckoning with the industry's environmental impact are anticipated. The rise of remote work models is also expected to increase the need for efficient cross-border payment solutions, especially for freelancers and contractors receiving payments in different currencies.
In the realm of technological advancements, the use of digital payment methods, including stablecoins, is gaining traction due to their potential for faster and cheaper transactions across borders. Central banks are seen as linking real-time payment systems as a promising avenue for improving cross-border payments efficiency. Additionally, blockchain and distributed ledger technology are being explored for secure and efficient cross-border payments, particularly in reducing settlement risks.
The industry is expected to place a renewed focus on operating with insight and transparency. The cross-border payments market is projected to grow significantly, with estimates suggesting it will reach $50 trillion by 2032. The need for more efficient and affordable payment systems is driving innovation in infrastructure, including the use of AI and digital platforms.
In the category of industry evolution, consolidation and spinoffs rather than IPOs are expected, along with a fightback from banking on B2B payments. The long-term strategy for remittances is expected to be a focus. Key announcements on Central Bank Digital Currencies (CBDCs) are predicted.
The G20's Roadmap for enhancing cross-border payments is being closely monitored for its impact on the industry. Significant growth in B2B ecommerce is anticipated, along with the rise of cross-border gifting as an alternative to classic remittances. The predictions for industry evolution are not explicitly stated in the paragraph, but it is expected that the growth in market size will be accompanied by increased adoption of stablecoins, innovation in payment infrastructure, and compliance and regulatory evolution.
As we move towards 2024, the cross-border payments industry is poised for a year of evolution, with a focus on transparency, technological advancements, and industry consolidation. The predictions by FXC Intelligence provide a roadmap for the industry, guiding it towards a more efficient, secure, and sustainable future.
The cross-border payments industry, bracing for significant changes in 2024, is anticipated to shift its focus towards greater transparency and the adoption of novel technology, such as digital payment methods and blockchain. Following the economic downturn in 2022, the industry is also expected to prioritize faster payments, de-dollarization, and combat its environmental impact. Furthermore, with the growth of remote work models, more efficient cross-border payment solutions will be required for freelancers and contractors receiving payments in different currencies.
