Cards, Real Time Payments, and Credit Trends with Matthew Goldman
Dec 21, 2023
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Fintech expert Matthew Goldman discusses the evolution of card products, banking relationships, fraud management, and the future of fintech. They explore the impact of regulatory changes, the rise of Credit-Card-as-a-Service, and upcoming trends in the card industry for 2024.
Vertical embedded finance is a growing trend in fintech, allowing for tailored financial services for specific groups.
Fraud and risk management will remain a top priority in the card industry, with increased investment in detection and prevention technologies.
Real-time payments systems like Zelle and RTP will gain more adoption in 2024, potentially impacting traditional payment methods like checks.
Deep dives
The rise of vertical embedded finance
There is an increasing trend in the financial technology space towards vertical embedded finance, where finance solutions are integrated into specific industries or life stages. This approach allows for tailored and customized financial services that meet the unique needs of specific groups. Examples include neo-banks targeting specific life stages or professions, such as a neo-bank for seniors or a neo-bank for plumbers. This trend is expected to continue in 2024, with more businesses exploring the opportunity to embed financial products and services within their existing offerings.
Focus on fraud and risk management
Fraud and risk management will remain a top priority in the card industry in 2024. As financial technology continues to evolve, so do the tactics employed by fraudsters. Companies will invest more in technologies and services that can detect and prevent fraud to protect both businesses and consumers. This includes identity verification solutions, fraud detection algorithms, and other risk management tools. The ability to effectively manage fraud will be crucial in maintaining trust and security in the card industry.
Increased adoption of real-time payments
Real-time payments systems like Zelle and RTP (Real-Time Payments) will see increased adoption and usage in 2024. As more individuals and businesses become familiar with the convenience and speed of real-time payments, the usage of traditional payment methods like checks may decline further. The impact of real-time payments on money movement and transaction behaviors will become more evident in the coming year, providing valuable insights into the future of payment systems.
Rise of business card products
The growth of vertical SaaS companies will drive the development of more business card products in 2024. These companies, focused on serving specific industries or niches, will recognize the need for integrated financial solutions for their customers. By offering business cards alongside their existing services, companies can provide a more comprehensive and streamlined experience for their customers, enabling them to manage their business finances more efficiently.
Emergence of credit card surcharges
Credit card surcharges may become more prevalent in 2024, leading to increased contention between merchants and consumers. As interchange fees remain a challenge for businesses, some merchants may choose to pass those costs onto consumers through surcharges. This could spark debates about fairness and transparency in pricing, as well as prompt discussions about the role of network rules and legislation in regulating surcharges. The impact of credit card surcharges on consumer behavior and merchant acceptance will be an area to watch in the coming year.
Reggie Young sits down with fintech expert Matthew Goldman in a deep dive into the world of card payments, real-time payment systems, and the latest trends in credit cards. With his extensive background in the card space and as the leader of Totavi, a boutique fintech consulting firm, Matthew shares his invaluable insights on the evolution of card products, the impact of regulatory changes, and the future of credit card services. They explore the nuances of banking relationships, fraud management, and the burgeoning field of Credit-Card-as-a-Service, offering listeners a comprehensive understanding of the current state and future prospects of the fintech industry.
Get a 10% discount on Totavi’s Credit-Card-as-a-Service Report with the the following code: layercake.
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