"Innovation Jury 2024" – Key points

"Innovation Jury 2024" – Key points

Just reviewed the last research from https://innovationjury.com/ – here are the key points related to payments:

1. Redirecting Investment in Fintech:

The majority of the Jury (68%) notes a reallocation of investment from the payments business to other fintech sub-sectors – investors are looking for less risky and more promising areas, the industry's profitability has fallen dramatically in recent years and investments are not worthwhile at this stage.

2. Re-evaluation of Profitability and Growth in Payment Companies:

There is a shift in focus to early profitability instead of rapid growth, which may indicate a long-term trend in the industry – amidst the current uncertainty and regulatory vise.

3. Growth of Mobile Payments:

The year 2024 could be a watershed year in the proliferation of instant mobile payments. This is due to the increasing share of A2A (Account to Account) systems and mobile money (wallet apps) when compared to traditional cards.

4. International and Home Payment Dynamics:

Emerging markets – where there is less regulatory influence – have seen strong adoption of mobile payment methods. In developed markets – by contrast – card-based systems dominate. Presumably, this pattern will continue in the near future without much change.

5. Regulators' influence on the Market:

The digitalization of payment systems is also perceived as a consequence of the heavy reliance on large private companies. Accordingly, regulators are faced with the question of supporting local and regional payment networks – in the context of maintaining sovereignty, innovation, financial inclusion and competition.

We expect average prices for payment services to go up this year.

Markets like Russia, Mexico, Brazil, India are passing or have passed the bottom – companies need to make money, regulators and financial watchdogs are taking a closer look, driving costs up and driving teams out of the market.

Keep in mind that price incentives are followed by innovation 💫