Consumer spending is strong and the U.S. economy looks bright with nearly all industries having contributed to unanticipated growth in late 2023. Leading up to today’s positive economic climate, and even during uncertain economic times in recent years, one major propeller of buying behaviors and business growth is the rising prevalence of digital and mobile payment solutions. 

“Many U.S. consumers experienced mobile payments for the first time during the pandemic to avoid the use of paper currency as well as debit and credit cards,” says Statista. Today, Statista added, “Digital payments involving the likes of Apple Pay, PayPal, or Alipay are predicted to be the fastest growing payment method throughout the world. What makes these transactions – that typically involve a virtual wallet or card on a phone or smart device – so popular, both in 2024 and beyond?” 

• For individuals, the answers are speed, convenience, simplicity, customer experience, and security, whether they’re using digital wallets, mobile wallets, the Apple Pay app, PayPal, or any other digital payment solution.
• And for businesses, banks, credit card and other financial services companies, and all other entities, digital payments are faster, safer, easier to collect, and more cost-efficient.  

It’s no wonder the world is embracing various forms of digital payment trends, a thriving area of commerce set to break new ground this year.  

Smartphones and smartwatches are leading the change  

A survey conducted on behalf of the NFC Forum, the global standards body for near field communication (NFC) technology, found that more than 80% of consumer respondents from the United States and eight other countries have used a smartphone or smartwatch to make a contactless payment.

Of those who have made a mobile contactless payment, more than half say they prefer to use their smartphone or smartwatch to make a payment rather than their credit card – and 95% say they have left their physical wallet or purse at home on at least one occasion, choosing instead to rely solely on mobile payments.  

NFC, a contactless transaction category, is merely one type of mobile payment technology. The many innovative ways payments are made are becoming more sophisticated and seamless by the day, and nonstop evolution is in store for 2024.  

Below are some of today’s most prominent and growing payment processing industry trends.  

The rapid rise of frictionless payments   

As revealed in the above survey, people are becoming more comfortable in leaving purses and wallets at home, choosing to use mobile and digital wallets, payment apps, one-click-payments, and cell phones to make payments instead. Frictionless payments, or contactless payments, refer to all these types of transactions.  

Frictionless payments are enabled by companies that integrate digital and mobile transaction capabilities into their products (think Apple), point-of-sale systems, e-commerce platforms, mobile apps, and other digital channels. A typical example is Uber, whose app automatically charges passengers, eliminating the need for passengers to provide credit cards or cash for a trip. 

Apple Wallet, Google Wallet, PayPal, and other transaction processing platforms provide the ability to, among other capabilities, simply hold a cell phone up to a terminal to pay. This is a good example of NFC-enabled payments, which are expected to significantly expand in 2024.  

Here are more innovative advancements ahead in 2024:  

• Biometric payments are increasingly being added to the frictionless payment mix, using fingerprint scanning and facial recognition as part of the authentication and payment process. Biometric payments are gaining trust and wider adoption among consumers, with 25% of Americans saying they’re comfortable in using this technology.  
• Digital omnichannel commerce, a single and seamless customer and company representative experience that integrates online, mobile, and in-store commerce, is becoming a minimum entry requirement for merchants, with 69% of consumers saying they’re excited to try new payment technologies. 
• Artificial intelligence (AI) is also becoming a critical payments technology, with 30% of companies already using it to enhance their offerings and services.  
• Embedded payments and finance are emerging as key channels, with 50% of merchants already using a software vendor for payment processing.  

Whether people are at the gas station, paying for groceries, paying a utility bill, or grabbing a sandwich – contactless payments are becoming a progressively more efficient, popular, and necessary form of payment.  

Streamlined approval processes for managers   

In the business world, teams across today’s organizations are constantly looking for ways to simplify and streamline their days – and when it comes to reviewing and approving transactions, digital technology is helping in a big way.  

Advancements are allowing finance and accounting teams to send approval requests to managers, owners, and decision makers and allow them to view and approve purchasing and other spending details on their cell phones. This technology eases decision making, simplifies processes, and ultimately helps to reduce the time involved in approval processing.  

Escalation in consumers ordering ahead    

Over the past few years, people have become more accustomed to ordering ahead – meaning more and more consumers are placing orders online and through their mobile devices for things they intend to pick up or have delivered. Whether it’s for retail products, groceries, home improvement products, coffee, or dinner, such conveniences absolutely include the use of digital and mobile payments for these purchases, as well as deliveries through Door Dash, Uber Eats, and other delivery services.  

Forbes shares some compelling statistics on changes to the ways people shop, buy, and pay:  

• Mobile commerce accounted for $491 billion in sales in 2023. 
• 91% of shoppers make online purchases using their smartphones. 
• 20.1% of retail purchases are expected to take place online in 2024. 
• E-commerce sales are expected to grow 8.8% in 2024.  

Companies, financial institutions, and payment transaction platform providers will be deeply engaged in advancements to their digital and mobile transaction capabilities throughout 2024 and beyond.  

Security and data protection are top priorities  

It’s interesting to see how the payment industry landscape has changed with the proliferation of different payment options. But beyond speed, convenience, and cost-efficiency are the essential areas of data privacy and security, along with fraud detection and fraud prevention, which play a far more substantial role in the shifts. What are safest online payment options?  

• By the end of 2023, digital wallets had become the leading e-commerce payment method in North America, accounting for 32% of all online transactions. This trend is growing, which is not surprising given the many layers of security built into digital wallet solutions, including encryption technology, passcodes, biometric security, and tokenization, which ensures each transaction has a unique one-time code to prevent fraud and ensures no customer data is part of the transaction.  
• Other most secure payment methods include credit cards, the second most popular form of payment by consumers, along with Automated Clearing House (ACH) payments, which facilitate the transfer of money from one bank to another. Electronic checks, or eChecks, a digital version of a check, are often used for one-time or auto-pay transactions. A growing number of businesses and e-commerce platforms, as well as federal, state, and city websites offer consumers the option to pay for services online via eChecks.  

This critical area of commerce places the onus on companies to continually improve their security protocols and stay current with the latest industry standards and regulations to protect customer data and privacy and prevent consumer fraud.  

“Making sure you have experienced finance and accounting professionals on your team that understand the complex security risks around electronic payment processing is becoming more crucial than ever,” says Brandon Laverriere, CFO at Goodwin Recruiting. “Customers are looking for simple and time-efficient ways to make payments and have an increased trust that companies will keep their confidential payment details secure. It’s incredibly important to have appropriate controls around payments, and the right experts on your team to help keep your financial information safe.”   

Build a finance and accounting team with digital know-how  

The global payments industry will accelerate innovation this year and beyond, making mobile and digital payments easier, faster, and more secure than ever for consumers, merchants, banks, fintech companies, and all other entities involved in the digital payment ecosystem. All companies need the right people on board to succeed.  

Organizations turn to Goodwin Recruiting, a Forbes Best Recruitment Company, to find accomplished finance and accounting talent. Let us help you onboard the expertise you need to drive financial success, manage risks, and contribute to the health and growth of your company – including in the digital transactions arena.  

Call on the recruitment experts at Goodwin Recruiting to make your next great hire.