Five of the Best: The Hottest Payment Trends from 2023

Here are five most-read stories covering the payments sector from The Financial Brand in 2023 — and why they will have continued relevance in 2024 and beyond.

1. How the ‘Paze’ Digital Wallet Aims to Win Over Merchants and Consumers

Author: Steve Cocheo (The Financial Brand)

Date: April 11, 2023

Executive summary: Paze was the new hot digital wallet of 2023 — even though it won’t launch in full until early 2024, and it won’t even reside on a mobile phone as an app (at least not initially). Instead, its strengths lie in its utility as an ecommerce checkout option.

The digital wallet is owned by some of the nation’s biggest banks, from Bank of America and PNC to JPMorgan Chase. Read Steve Cocheo’s deep dive on 2024’s hottest digital wallet. (Then read the follow-up on the company’s revised battle plan.)

Quotable: “Each wallet has to be opted into one at a time. And even if Paze can achieve critical mass with their numbers, unless the merchants accept the wallet, it will be dead on arrival.” — Richard Crone, payment consultant

2. Apple Card’s Newly Launched Savings Account Is Another Brick in the Walled Garden

Author: Steve Cocheo (The Financial Brand)

Date: April 19, 2023

Executive summary: Apple keeps encroaching further into banking, making it a leader among nonbank players vying for traditional institutions’ turf. This year, Apple Card launched a savings account that builds on the tech company’s place in the legacy financial industry. Review the roots of Apple’s savings account

A big takeaway: Apple Savings sits apart from ordinary savings accounts because it interlocks with the rest of Apple’s banking and payment ecosystem.

3. Zelle’s Growing Popularity with P2P Users Benefits Banks in Surprising Ways

Author: Steve Cocheo (The Financial Brand)

Date: February 24, 2023

Executive summary: Increasingly a favorite of consumers utilizing P2P, Zelle has been growing steadily. Transactions on the bank-owned network rose 26% to 2.3 billion, and 28% in transaction value, to $629 billion, in 2022.  What does Zelle mean for the future of banks and credit unions?

Quotable: “There are more Zelle transactions sent by our customers than there are checks written by them.” — Brian Moynihan, Bank of America.

4. Credit Cards Evolving into All-Purpose Financial Services Accounts

Author: Steve Cocheo (The Financial Brand)

Date: January 26, 2023

Executive summary: The bank card line of credit is becoming the epicenter of multiple consumer credit relationships, all feeding off the total amount the card issuer judges the borrower can handle — card, personal loan, even buy now, pay later purchasing. We were on this trend early and the philosophy of credit card as an all-purpose bank credit account trend is expected to continue into and beyond 2024. Read more about this and four more credit card trends

A key takeaway: Credit card issuers that don’t keep up with leaders on these trends could see interest in their offerings flag.

5. FedNow’s Debut Turns Instant Payments into a Must-Have for Banks and Credit Unions

Author: Steve Cocheo (The Financial Brand)

Date: August 31, 2023

Executive summary: When FedNow joined The Clearing House Real Time Payment Network this summer, the U.S. suddenly had an instant payments horse race on its hands. The first of our post-launch stories about FedNow, this deep dive discusses how it will impact the payments business for institutions large and small on both the business and consumer banking sides.

Quotable: “To not participate may put your financial institution at risk,” as many small and midsize businesses will expect this service and will switch banking providers to get it. — Richard Crone, payments consultant

This article was originally published on . All content © 2024 by The Financial Brand and may not be reproduced by any means without permission.