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COMMERCE TRENDS

Evolution of the payment landscape in 2024

8 min read · 2026

Payment landscape experts in a diagram

As we move into 2024, evolution will remain constant. With ever-increasing consumer expectations and technological advancements, we anticipate that digital commerce will continue to bring new possibilities and unknowns for our customers.



We strive to help your business stay ahead of the curve by preparing you for these potential challenges and opportunities.

Expert insights on how payments will be impacted in 2024

To kick off the year, we sat down with our own top payment experts to provide insights on where the industry may be headed and what this could mean for businesses and consumers.

 

 

 

A man in an orange jacket and sunglasses on the steps looking at his phone

2024 will be about doing more with what you have. For digital businesses, this includes optimizing your payment options and strategy already in place. Stop chasing the shiny new thing and focus on getting more from their payment and online assets.



The cost of obtaining net new business or growth is high. In contrast, there are earnings and growth opportunities left on the table that are easily obtained if businesses took the time to create a strategy to extract more from what is available.



For instance:
Do you operate a subscription business or offer card on file? Use Network Tokenization to support you to increase approvals.



Do you have a checkout process that feels long and cumbersome? Turn on Click to Pay to help you speed up the process.

Alex Wilson

Director, Product Management‎

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Developing the best payments experience for consumers is top of mind with our customers. To succeed, they need to offer faster and diverse payment options providing end users with convenience, affordability and security.



It is an acknowledged fact that compared to face-to-face, online payments are not frictionless. This is largely because, e-commerce transactions are treated as riskier. The acceleration of e-commerce growth amplified these challenges, but along with them, it has amplified the value of tokenisation. Today, tokens are more important than ever in e-commerce payment landscape. They provide a seamless checkout experience, with enhanced security for credentials, higher authorization rates through capabilities like tokens lifecycle management and device binding.



The other future growth in payments will be stimulated by instant-payments options for customers with the rise in digital wallets, Account to Account (A2A) and domestic payments in many geographies. We will see significant shifts in certain markets toward instant payments and estimate the transactions’ share to be roughly half of overall payment transactions in next 3-5 years. In several African countries, mobile-wallet infrastructure is ubiquitous and interoperable.

Mohit Aery

Vice President, Eastern Europe, Middle East and Africa, International Markets‎

In the digital age, the payments ecosystem has undergone a profound transformation, reshaping the way we handle our finances, conduct business and interact with the global economy. From traditional cash and cheque payments to the advent of digital wallets, cryptocurrencies, and innovative fintech solutions, its evolution has been rapid.



Payments are becoming increasingly cashless, and the industry’s role in fostering inclusion has become a significant priority. Payments also are supporting the development of digital economies and are driving innovation — all while functioning as a stable backbone for our economies.



As we embrace 2024, customers will need to consider several existing and emerging factors as part of the payment lifecycle.



1. Inclusion and trust

2. Hyper localisation via regulation


3. Continued growth of digital wallets


4. Network Tokenisation


5. Financial Crime/Fraud

David Budzevski

Vice President, Product Management‎

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The Asia Pacific region is continuing to innovate and embrace new digital technologies. As companies expand globally and plan their cross-border strategies, it will be essential they consider how to address the unique demands in this region.



To stay ahead of the curve, it will be essential to prioritize mobile payments and digital wallets. The widespread use of smartphones in the region makes this a top priority. It is also important to focus on contactless/QR payments and biometric authentication to align with evolving customer preferences and enhance the customer experience.



To cater to the growing demand for seamless cross-border transactions, companies will need to prioritize customer data security, AI and machine learning for efficiency, and understand localization requirements. Compliance with evolving regulations is also crucial to establish a successful payment strategy in the region.



Lastly, fostering collaborations with local fintech startups, financial institutions, and regulatory bodies can help navigate the diverse and evolving payment landscape in the Asia Pacific region.

Jayanthi Sivasankar

Vice President, Asia Pacific International Markets‎

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As the payment industry is on a path of evolution, we too are on a journey to grow how we support you. We have shifted from a product-based mindset to a service-oriented one, focusing on how we connect our customers to payment and digital acceptance solutions both locally and globally.



This year, we will double down on enhancing customer interactions, fast-tracking integration and onboarding and ultimately enabling customers to drive more value from Mastercard Gateway.



Key to this shall be our ability to improve our methods of customer engagement and customer awareness of key developments through solutions such as Mastercard Connect. Plus, localizing services, for example, providing local language support for customers in our Chinese or Arabic speaking regions or through tailored product trainings to meet specific needs.

Amol Natu

Vice President, Product Operations‎

2024 could be a transitional year: whilst there won’t be any large change that customers may have to go through, 2024 will be crucial to develop the foundations for the next three years. Large topics that will have to be addressed are the new Payment Service Regulation (PSR) and PSD3 in Europe; Localization trends across the globe as well as new payment systems and schemes cross Europe and North Africa. And whilst AI hasn’t been dominating the headlines for the payment industry, there is an expectation that very soon we will see some development on this front. Fraud and Security will still be a large focus area for all parties.

Marco Formicone

Vice President, Legal Compliance‎

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Heading into 2024, payments companies leveraging payment data will find themselves in a strong position to extract incremental value and differentiate their offerings to customers. Utilizing payments data will become crucial in helping to unlock the unprecedent insights which can drive business decision making and lead to increased revenues. To enable driving these insights and providing the ability to be able to react quickly to emerging trends and issues, it is critical that companies can leverage their real time payments data. These real time analytics are key for business to help prevent fraud, drive innovative user authentication methods, drive improved payment experiences, and unlock insights across the end-to-end payments chain. Through unlocking the value in these real time insights payment industry companies should be able to drive effectiveness in their cost base through increased revenues, lower customer acquisition costs and enabling business growth.



Those who can harness the power of their payment data will find themselves better equipped to deal with the ever-changing payments landscape and be able to set themselves up for success in 2024.

Henrique Ferreira

Manager, Data Scientist‎

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The growth of in-car commerce is continuing to accelerate. Vehicle manufacturers are leveraging technology to offer customers a convenient and seamless digital experience for real-world use cases like EV-charging. The pandemic provided the catalyst for digital transformation as the cashless society emerges as the new norm. The surge in vehicle sales and the need to offer seamless digital experiences will only accelerate over the next few years. The car manufacturers will leverage vehicle data to offer personalized experiences. The manufacturers use their proprietary technology to create their in-car payment wallets and displace mobile devices.


The ‘connected car’ will not only be limited to electric vehicles. The integrated payment experience will extend to how we pay for fuel, food, and beverage, over-the-air content/subscriptions, parking and related payments. Safety, security and continuity of payment will be crucial factors and value drivers for consumers.



Mastercard Gateway is forming partnerships with the auto industry and ecosystem partners to bring innovative in-car experiences to the market.

Sadeek Varachia

Director, Product Management‎

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In 2024 we can expect to see a shift towards more regionally focused payment solutions, accompanied by heightened technology-driven modernization. As this accelerates, there is also a heightened focus on social responsibility, especially in governance related to fraud prevention to create secure and trustworthy payment environments.



Cross-border payment dynamics are also substantially shifting, particularly in consumer payments. This presents lucrative business opportunities to tap into emerging markets and new consumer segments driven by changing global trade and consumer spending patterns.



To navigate these waters successfully, businesses in the payment sector must be agile and forward-thinking. Modernizing platforms to accommodate new technological capabilities like real-time processing and cloud computing is imperative. Equally crucial is bolstering fraud detection and prevention strategies, ensuring compliance, customer trust, and safety. Embracing social responsibility and aligning with evolving governance standards will maintain market relevance and consumer confidence.



For our industry, 2024 offers challenges and opportunities, demanding a strategic blend of technological advancement, regulatory adaptability, and a solid commitment to security and social responsibility. In the shifting terrain of cross-border payments, payment gateways offer invaluable support. They enable businesses to capitalize on emerging opportunities in the consumer payments sector, streamlining international transactions and adapting to diverse market needs.

Magdalena Targosz

Director, Product Management‎

In the rapidly evolving payments landscape, it is challenging for banks and merchants to keep pace with consumers expectations.



At Mastercard Gateway, we understand the importance of extending our subject matter expertise, industry knowledge, resources, and product distribution channels through strategic partnerships to meet our customers' specific needs. These partnerships help to expand our offerings and provide the best possible services, experiences, and market reach to our valued customers.



By collaborating with new and emerging experts in the industry, we can help your company stay ahead of the curve and adapt to consumer needs. Through these partnerships, we can also leverage each other's strengths and expertise to develop innovative solutions that meet the evolving needs of our customers. Our goal is to always stay customer-focused and provide customers with the best possible payments experience, no matter where they are in the world. We believe that our strategic partnerships are a key component of our success and will continue to invest in strategic partnerships to ensure that we can provide the most comprehensive and cutting-edge solutions in the industry.

Angelique Burger

Director, Product Management‎

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Disclaimer: The information contained herein constitutes forward-looking opinions from individual employees. The views expressed in this article are the author’s own and do not reflect the views of Merchant Cloud.