From the growth of new payment methods to the rise of purpose-driven innovation and the increasing importance of effective cyber security measures, this article explores key trends shaping the sector. Here, CEOs and founders of influential fintech firms offer their perspectives on these challenges and opportunities as we move into 2024.

The article contains quotes from the following:

• Lena Hackelöer, CEO and Founder of Brite Payments
• Alex Mifsud, CEO and Co-Founder at Weavr
• Kimberley Waldron, Co-Founder of SkyParlour
• Oli Cook, CEO and Co-Founder of ekko
• Tamas Kadar, CEO and Co-Founder of SEON
• Patrick Smith, CEO and Co-Founder of Zally

‘Instant payment methods will truly enter the mainstream consciousness across Europe in 2024’

says Lena Hackelöer, CEO and Founder of Brite Payments

“The shift towards instant and faster payments has been gathering pace for some time, with successful government-led initiatives acting as a catalyst in markets like Brazil and India. However, I believe that 2024 will be the year when instant payments, as a retail payment method, truly enter the mainstream consciousness across Europe. The European Commission's draft proposal to mandate the use of instant payments for all Eurozone transactions, now provisionally agreed upon by the European Parliament and Council of the EU, will be a major driver.

“Moreover, the emergence of the next generation of open banking payment solutions, some of which facilitate instant payments along with a range of value-added services, will also play a significant role. Combined with growing merchant awareness of the benefits of instant bank payments, we’re going to see greater visibility in the checkout, paired with initiatives aimed at incentivising consumer usage.

“The use of instant bank payments as a retail payment method is an exciting proposition, offering incredible convenience, reliability, and security for both merchants and consumers. This applies to making payments, as well as receiving payouts, as solutions like Brite handle transactions in both directions – in real time. With our easy-to-use solution, users can pay directly from their bank account using their bank authentication. This means no sign-ups, no card details, and zero hassle when making instant payments online.”

‘A transformative year for payments awaits’

says Alex Mifsud, CEO and Co-Founder at Weavr

“I agree with Lena that 2024 promises to be transformative for payment systems. Developments like Variable Recurring Payments (VRP) within the open banking space and advancements in real-time payments are set to redefine the landscape. VRPs are exciting as they facilitate secure, direct links between payment initiation service providers and bank accounts.

“When coupled with real-time payments such as Faster Payments in the UK and SEPA Instant in the Eurozone, the key components of a powerful new retail payments approach will be in place. However, they will still be missing sophisticated scheme rules that make the established card schemes so compelling. At Weavr, we have invested in powerful open banking workflows that will enable us to take advantage of these developments in the context of Embedded Finance.”

‘Purpose-driven innovation will be more important than ever’

says Kimberley Waldron, Co-Founder of SkyParlour

“Listening to Alex and Lena, it’s clear there is still a lot to be excited about within the fintech sector. The industry has had its ups and downs in the past year, but it remains full of innovative people and businesses building solutions that make a real difference to everyday lives. It’s exciting to hear about what’s going on in payments, but it’s not the only area I'll be keeping an eye on over the next twelve months.

“As we enter 2024, individuals are increasingly interested in solutions that address specific societal and environmental challenges, rather than products that seem like innovation for innovation’s sake. This is encouraging a new wave of purpose-driven innovation, which is likely to have a massive impact on the fintech sector in the next year.

“The companies leading this charge will not only provide innovative services but also demonstrate a clear understanding of the regulatory landscape to ensure compliance and build trust. In the next year, the integration of robust ESG strategies into business models across fintech will likely become standard practice, as the market increasingly favours companies with responsible and transparent operations.”

‘The world will continue to become more eco-conscious’

says Oli Cook, CEO and Co-Founder of ekko

“I’d second what Kimberley said, particularly regarding solutions that embed more sustainability into our lives. Eco-consciousness isn't a passing trend – it's becoming a significant shift in how businesses operate and how people think. Customers, investors, and employees are increasingly mindful about sustainability, and this awareness is shining a spotlight on businesses that can help others achieve their sustainability goals, like ekko.

“Businesses championing sustainability aren't only beneficial for the planet; they're also pioneers in valuable innovation. Companies like ekko, who seamlessly integrate sustainability into their core, are developing groundbreaking solutions and cultivating brands that resonate deeply with people.

“This growing emphasis on sustainability is driving some truly impressive innovation. We're seeing the development of simpler, more effective eco-friendly solutions, making sustainability a substantial advantage for businesses in 2024 and beyond.”

‘Businesses will face escalating pressure to enhance their fraud protection measures’

says Tamas Kadar, CEO and Co-Founder of SEON

“In the face of rising online fraud and limited government action, businesses are increasingly burdened with the responsibility of protecting customers. In the past year, clients of SEON have regularly expressed concerns about insufficient government support, highlighting a gap in effective fraud prevention strategies. As we look ahead into 2024, it’s going to be interesting to see if this issue improves or worsens.

“Thankfully, the UK government's new anti-fraud strategy, published in May, could offer hope here. The strategy aims to reduce fraud by 10% on 2019 levels by December 2024, designed to help stop scams and protect the public. Of course, we won’t know how effective this strategy is until it’s fully implemented, but it seems to be a step in the right direction on paper.

“Still, over the next 12 months, businesses should expect to face escalating pressure to enhance their fraud protection measures. This situation will necessitate greater investment in advanced fraud prevention technologies and strategies, with a strong focus on maintaining customer trust and regulatory compliance. In this pursuit, businesses like SEON can help companies to bolster their defences against sophisticated fraud schemes.”

‘It might be time to forget passwords’

says Patrick Smith, CEO and Co-Founder of Zally

“Much like Tamas, I’m predicting a big shift in the cyber security landscape within the next 12 months. As a sector, we’re finally beginning to embrace the power of behavioural biometrics. This shift isn't just about adopting new technology; it's a fundamental change in how we approach security and user experience. Traditional password systems, while familiar, are showing their limitations. In fact, even the strongest passwords can now be cracked within a couple of hours.

“This is far from ideal, especially in the context of escalating online fraud rates and heightened cyber security concerns. Our reliance on passwords has also led to a considerable burden on users, who need to remember around 120 passwords on average. This often leads to the reuse of the same password across multiple platforms, making two-thirds of the population vulnerable to security breaches, as a single compromised password can jeopardise multiple accounts.

“At Zally, we're helping to lead the charge in moving away from this outdated model. Our platform uses advanced behavioural biometrics, integrated through just a single line of code, to continuously authenticate users. This approach not only enhances security – as individual habits are impossible to replicate or hack than traditional passwords – but also offers a seamless user experience. This year, I believe we'll see more companies recognising the need for these innovative solutions.”