Top 10 Predictions for the Payment Industry in 2024

Mondo Technology Updated on 2024-02-01

The payment industry is ushering in a new year, what changes will happen to the payment industry in 2024?

Written byFeng Yuting, Xu Guoqing, Zhang Haodong.

ProducedPay for the encyclopedia.

The payment industry has gone through the ** era in the past 20 years, the ** era, what is the color of the next ten years, we think that the peers have not too much expectations, after all, the continuation of the "** decade" is no longer there, the practitioners are timid, the payment industry is moving towards "Ragnarok", or the "colorful" in the new era?

As a witness and observer of this industry for more than ten years, we believe that there is only the thinking and change of the times, and there is no end of the times. Payment Encyclopedia Combined with the current supervision and trend of the payment industry, as well as the leaders of many payment institutions, we have sorted out the ten ** of the payment industry in 2024, please refer to it.

Payment institutions will be intensively renamed

The Regulations on the Supervision and Administration of Non-bank Payment Institutions stipulate that the name of the payment institution shall be indicated"Payment"Words. According to the statistics of Payencyclopedia, 89 of the 186 licensed payment institutions do not have the word "payment" in their names.

The regulations will be officially implemented on May 1, 2024, and now there are only more than three months left, leaving little time for payment institutions to change their names. In order to meet the specifications and requirements, these 89 payment institutions will start to change their names intensively at the beginning of this year.

The number of POS machines is growing

Many merchants are affected by Circular No. 259 to handle new POS machines, and after the policy of one machine one code and one machine and one household, more merchants will replace their POS machine equipment, and the number of POS machines handled by merchants with high demand may increase from one or two to many.

Originally, a POS machine could raise a card, but now after the merchant is fixed, the credit card bill usually shows the merchant with region + name + industry. In order to circumvent risk control, it can only be solved by multi-office POS machines, so the number of POS machines and the number of online merchants will further increase.

Payment license selling peak

In 2024, the transfer of payment licenses will usher in a peak, and many payment institutions do not want to do it, including many large payment companies, which may sell themselves.

According to Paypedia, a number of payment licenses are currently being listed for buyers, and some have already found interested parties. However, the transfer period of payment licenses is long, and it needs to be approved by the central bank, and many payment licenses that were previously in the process of listing and negotiation are expected to complete the transaction this year.

Rates are universal**

In the context of intensified market competition, the cost of raw materials and labor of POS machines has increased, and payment institutions have raised the rate of POS machines considering the need to recover costs and maintain profitability, and 150 and 250 are now very common.

In addition, the payment industry is gradually marking the price of the POS machine rate, which was originally a secret price increase, but now it is filed and announced in accordance with the relevant process, and the price increase is profitable, and the trend of POS machine price increase is irreversible.

Roll out from home to overseas

After the formation of the domestic payment business pattern, a number of payment institutions have launched the layout of global business. Many domestic payment institutions directly go overseas to do payment business, apply for overseas payment license resources, and engage in cross-border payment, electronic money issuance, global remittance and foreign exchange services locally.

In addition to Ant and Tencent, such as Lianlian has obtained payment licenses in Thailand and Indonesia, Pingpong has obtained payment licenses such as Luxembourg EMI and UK EMI, and Shouzhan Technology has also done code license business in Indonesia, and the speed of domestic payment institutions "going out" will continue to accelerate this year.

The payment of foreign capital into China has accelerated

In recent years, the regulatory authorities have orderly expanded the high-level opening up of the payment industry to the outside world and granted national treatment to foreign-invested payment institutions. Many foreign fintech institutions have entered China to seize the market, such as WorldPay, Adyen, Checkout, Klarna, Atome and other international institutions have set up branches in China.

Not long ago, the foreign-funded joint venture Wanshi Netlink won the bank card clearing license, and Wanshi Netlink is likely to enter the domestic market from cross-border payment in the future, and Thunes has set up a Greater China headquarters in Beijing. With a clearer attitude towards the opening up of financial payments, it is expected that more foreign payment institutions will invest in China.

Banks continue to merge

With the rapid development of the banking industry, the natural disadvantages of small and medium-sized banks make it difficult for them to gain a foothold in market competition, such as the impact on the scale of deposits and loans due to small scale, and the limited scope of business development, all of which restrict the development of small and medium-sized banks.

With the completion of the restructuring of the first batch of provincial-level rural commercial joint banks, the benefits of bank union are gradually revealed, and in this context, small and medium-sized banks will accelerate the merger, narrow the gap with large banks as much as possible, and achieve better financial services and group heating.

Accelerate the promotion of palm payment

Since the "WeChat Swiping" was officially launched at the Beijing Metro Airport in the middle of last year, 5,000 retail stores across the country, dozens of shopping malls in Guangzhou and Shenzhen, and many colleges and universities have launched Swiping Palm Payment. The characteristics of palm payment are that it has higher privacy and higher recognition accuracy.

As a "biometric" payment technology, palm payment also has a higher degree of convenience, which can get rid of the dependence on mobile phones, cards and other terminals. WeChat Pay and Alipay have successively announced patents and trademarks related to palm payment, and entered the market to compete for palm payment. At present, the palm payment has been selected in the first-tier cities across the country for trial, driven by the two payment giants, this year's palm payment promotion and popularity will be improved, and more market recognition.

Card-not-present payments are a matter of life and death

In 2024, card-not-present payments will be disrupted, and a number of card-not-present payments have been announced to be shut down since the beginning of the year. Even ordinary POS machines are strictly enforced with one machine and one code, and cardless payment, an alternative low-cost product, will definitely be the object of key rectification.

Cardless payment does not even have the code of the POS machine, and only needs an app to achieve it, threatening the security of users' funds, information leakage, credit card cashing and other problems are frequently named, and they are non-compliant from all aspects. After the completion of the POS machine rectification, cardless payment will become the target of public criticism.

Credit card dehydration

In 2024, banks will no longer simply pursue the number of credit cards issued and various indicators, and continue to compress the water is the main task of banks.

In the future, the full-time professional cash-out group will become a watershed. In the past, the card group can bring a large number of transactions and profits, and the bank turned a blind eye, but now the bank's view of the card group has also changed, and it is more important for the bank to control the risk of credit card business.

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