? Analyzing Fintech Trends: Results from 2023
- Peter Johnson
- Dec 14, 2023
- 5 min read
2023 was a landmark year for the Fintech sector. According to Statista, the total transaction value in the Digital Payments market was estimated to hit US$9.45tn in 2023. Several industry professionals expressed their ideas about the trends of the year. This article will go over the main achievements of 2023 and discuss which of them will remain applicable in the upcoming year.
An increase in global revenue has been observed. A surge in the amount of money generated worldwide has been noted.
A rise in global revenue has been recorded. It is evident that a considerable surge in the worldwide income has occurred.
The payments sector is anticipated to experience explosive growth, with estimates suggesting it will reach $2.7 trillion in 2023, up from $1.9 trillion in 2019. This accelerated development reveals the ever-transforming manner of consumer transactions and the importance of digital payments in the modern economy. The total transaction value is anticipated to increase approximately 11.83% year-over-year leading to an estimated total value of US$14.78tn by 2027.:
The growth of e-commerce has been remarkable. Over the years, the e-commerce industry has developed tremendously.
The evolution of e-commerce has been remarkable. Through the years, the e-commerce sector has experienced tremendous growth.
E-commerce, a prominent feature of contemporary consumer behaviour, is on the rise. It is predicted that by 2025, this digital marketplace will account for 12% of consumer expenditure worldwide, following a remarkable 81% surge in internet-based transactions all over the globe, owing largely to the changes caused by the COVID-19 crisis in 2020.
Strategies for recovery must be established.
Establishing recovery strategies is essential.
Recent developments in failed payment techniques are having a major impact. Businesses consistently monitoring and recovering failed payments experience a tremendous 60% success rate, showing the significance of being watchful and taking corrective action in this area. Technologies such as routing and cascading are the key components in this situation.
The utilization of mobile payments and buy now, pay later (BNPL) services are on the rise.
The popularity of mobile payments and BNPL is increasing. People are using these services more and more.
The story of mobile payments has taken the spotlight, with estimates indicating that it is set to account for an incredible 59% of all e-commerce spending by 2025. Plus, Buy Now, Pay Later plans were thought to have a 5.3% share of global trades by the same year, transforming the financial sector. Nevertheless, now it looks as though the effectiveness of BNPL models will be diminished, reported by firms implementing them.
Breaking Retail Barriers
We are committed to going beyond what is expected in the retail sector and pushing back the boundaries that have been set. Our goal is to exceed industry norms and create a new standard that will set us apart.
It was foretold that e-commerce would overtake traditional retail standards, increasing to 20.8% of retail sales by 2023, and subsequently reach 24% by 2026. Expectedly, the global market will be worth over $6.3 trillion by 2023, and then surpass $8.1 trillion by 2026, demonstrating a dramatic shift in customer behaviour and market trends. is a process through which energy-related markets are altered to reduce energy consumption and improve building performance.
The process of Market Transformation involves changing energy-related markets so as to reduce energy consumption and improve the efficiency of buildings.
Predictions indicate that the fintech market is expected to witness a remarkable surge in growth. In 2023, it is estimated at USD 194.57 billion and is projected to reach USD 501.9 billion by 2032. Advanced technologies such as artificial intelligence, blockchain, and cloud computing are responsible for this market transformation.
The combination of security and convenience is a desirable one.
The ideal situation is one that offers both security and convenience.
It was forecasted that cryptocurrency's impact on payments would experience a 45% incline during the initial three-month period of 2023. Digital currencies possess ingrained safety and decentralisation which makes them the perfect option for online platforms. Additionally, utilising cryptocurrencies for online payments not only streamlines deals, but also boosts security, satisfying the requirements of consumers. This tendency is still pertinent.
What can we anticipate for the coming year?
Considering the trends in payments in the coming year, we should not ignore other directions. In general, each of the trends outlined should still remain relevant for 2024. Nevertheless, it is worth noting the ones most likely to gain traction.
Peer-to-peer (P2P) payment apps enable users to exchange funds with one another without the need for a traditional centralized institution. These applications provide a convenient way for people to send and receive money.
Users benefit from increased convenience when utilizing peer-to-peer payment applications, which allow for direct transfers of money between individuals. are becoming increasingly popular
The use of cryptocurrencies for payments is rising in popularity.
Cryptocurrency, distinguished by its digital features and decentralized structure, provides an alternative to regular banking systems., a term used to describe an open and secure platform through which different financial service providers can share customer data, is becoming popular around the world.
Open Banking, a framework in which financial service providers share customer data in an open and secure manner, is gaining traction globally.
By making use of APIs to share financial data with outside services, open banking permits consumers to access a wider spectrum of financial products and services. (CBDCs) are digital assets designed to act as a medium of exchange between consumers and financial institutions.
CBDCs are digital forms of money created by central banks to be used as a medium of exchange between consumers and financial institutions.
Central bank digital currencies (CBDCs), which are regulated and supported by central banks, signify an electronic development of national currencies, intended to align with the expanding prevalence of a cashless society. are online transactions completed on a social media platform.
Payments made over a social media platform are known as Social Commerce Payments.
Social media outlets are becoming prime areas for shopping, permitting businesses to market their wares directly within the networks, accessing a substantial customer population.
By 2023, Fintech had developed technologies and features that were more customer-centric. It experienced ups and downs, helping us to understand what direction the industry might be heading in. Let's take a look at what will happen with payment technologies in the future and which forecasts will materialize in the coming year.
The data were provided by experts in the field.
Experts in the field supplied the data.
As of 2023, Statista reported that digital payments worldwide had increased. [Online] Available at: <https://www.mckinsey.com/industries/financial-services/our-insights/consumer-trends-in-digital-payments>.
McKinsey & Company have released a report on consumer trends in digital payments in 2022. The paper can be accessed at <https://www.mckinsey.com/industries/financial-services/our-insights/consumer-trends-in-digital-payments>. Retrieved from
Insider Intelligence. (2022). Worldwide Ecommerce Forecast Update 2022 [Data File]. Retrieved from
By 2023, businesses that measure Lifetime Customer Value (LCV) through subscriptions will outperform their competitors.
The 2023 European E-commerce Report
The European e-commerce sector has seen a tremendous growth in the past decade. This report examines the developments and trends in this market, looking at consumer behaviors, market dynamics, industry regulations, and future implications. The report also provides a comprehensive overview of market size and segmentation, and analysis of the competitive landscape. The report looks at the key trends impacting the market, such as cross-border e-commerce and developments in mobile commerce, as well as an outlook for the future.
The 2023 European E-commerce Report provides an in-depth analysis of the developments and trends in this rapidly-evolving sector. It examines consumer behavior, market dynamics, industry regulations, and future implications. The report also provides an extensive overview of market size and segmentation, as well as an analysis of the competitive landscape. Key trends influencing the market, such as cross-border e-commerce and developments in mobile commerce, are also discussed, along with an outlook for the future.
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