6 Payments Industry Trends to watch out for in 2023
The global payments industry is undergoing another huge period of growth, valued at $2.2 trillion in 2020 it is now projected to reach $3.8 trillion by 2025 (Statista).
There are two major reasons for this growth: disruption from new technologies such as blockchain, mobile payment apps, and contactless payment methods, and the COVID-19 pandemic, which has massively accelerated the adoption of digital payment methods, with more consumers than ever opting to use contactless and online payment methods.
"As the payments industry continues to evolve, innovation will be key to staying ahead of the competition." - Liz Farmer, PaymentsSource
So what trends should you be looking out for in 2023 in the payments industry?
- New technologies driving a more personalised payments experience: Further disruption is coming with advances in artificial intelligence, machine learning, and blockchain. Leaps in these technologies will encourage a faster, more secure, and more personalized payments experience.
- Mobile payments and digital wallets are still growing in 2023: Smartphones have made it easier than ever to make purchases, so it’s no surprise that mobile payments are expected to surpass credit card payments globally in 2023, with a projected transaction value of $14 trillion (Juniper Research).
- The rise of contactless payments and biometric authentication methods: The COVID-19 pandemic has had an impact in more than one sector, but particularly in the payments industry, with nationwide lockdowns driving consumers to shop online, and with more consumers and businesses than ever opting for contactless payments options to avoid touching cash or card readers.
- Increasing adoption of blockchain and cryptocurrency in payments: Bitcoin has been around for a while now, and as people become more familiar with cryptocurrencies in general, the market is likely to grow as people start to use them for everyday transactions.
- Growth of the Internet of Things (IoT): As IoT technologies continue to make significant gains in the market, there are likely to be further leaps into new forms of payments system, such as smart home technologies and in-car payments.
- Online payment fraud is on a similar trajectory: With rapid gains in online payments, there is likely to be a similar increase in online payment fraud: in 2020 alone losses reached $57.8 billion globally (Nilson Report). The cybersecurity payments space is one to watch in 2023.
"In order to stay competitive in the payments space, companies need to invest in cutting-edge technology and hire skilled professionals who can help them navigate the rapidly changing landscape." - Maria Gracheva, CFO, QIWI
How to hire the right skillsets in the Payments Sector
It’s becoming more important than ever to source and retain the right skillsets in such a rapidly changing market. The US Bureau of Labor Statistics estimates that the employment of financial managers, including payments professionals, will grow by 15% from 2019 to 2029, which is much faster than the average for any other occupation. With that in mind, here are some key challenges to hiring, and how you can overcome them for the Payments sector:
Key challenges to hiring in the Payments sector:
- High competition for top talent in the payments industry
- Shortage of skilled professionals with experience in payments technology
- Rapidly changing technology landscape requires constant re-skilling and upskilling of employees
- Online payment fraud is a growing concern in a rapidly evolving payments market
More businesses are turning to freelance payments professionals for their specialised expertise and greater flexibility. Freelance payments professionals can help companies stay agile during times of rapid change and innovation, with access to the most in-demand skillsets as and when you need them, for a fraction of the cost of employing permanent staff.
At Hubbado we have a growing community of the highest in-demand skillsets in the FinTech and Payments Industry, with 90+ freelance Payments specialists working in IT, Sales and Business who have been handpicked and vetted by our in-house payments experts for their skills and expertise.
Hire seasoned payments professionals for your business today, or explore our payments and fintech services, including Card Acquiring, Cyber Security services for the payments industry, SaaS and PaaS cloud computing solutions, and Payment and Transaction processing services.