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Three Payment Trends to Watch

PULSE Live logo and headshot of Tony Hayes.

This year is expected to be a strong one for payments. That was the assessment shared by Tony Hayes, Founder of Banking & Payments Group, during a recent conversation with Steve Sievert, PULSE® Executive Vice President of Marketing & Brand Management.

A recognized expert on retail payments, Hayes spoke with Sievert during a PULSE Live webinar, The Major Forces Shaping Payments in 2024. He shared insights on topics ranging from debit issuer revenue and the impact of potential regulatory changes on issuers to the rise of fintechs, digital challenger banks, and peer-to-peer apps.

Hayes said he is watching three key payment trends in 2024:

Continuing transaction growth. 

After several years of wild economic swings caused by the pandemic and subsequent rebound, another year of moderate transaction growth in 2024 should be considered a win.

Peaking credit card charge-offs.

A big question mark is how stretched consumers are after a couple years of rapid inflation. Hayes expects the rate of credit card charge-offs – the percentage of accounts written off as a loss – to peak in mid-2024 after rapidly increasing in recent months.

Escalating regulatory burden.

With significant regulatory changes possible in debit, proposed new regulations targeting credit, and potential regulations related to open banking and fintechs, financial institutions will have a lot to keep track of, as well as priorities to establish. “The risk is that (institutions) are pushed into reactive mode and aren’t able to focus enough on opportunities and continuing to meet the needs of their customers going forward,” said Hayes.

Hayes and Sievert also discussed perspectives on mobile payments, confusion around real-time payments offerings, and possible impacts of proposed changes by the Federal Reserve that would reduce the cap on debit interchange for financial institutions with $10 billion or more in assets.

Watch the webinar for more details.