Payments
Introduction.
Navigating the payments industry in 2024 offers unique opportunities for innovative and strategic solutions. Thredd launched a pulse survey earlier this year and has since captured insights from hundreds of payments industry professionals about their biggest anticipated headaches. This report aims to share actionable insights for businesses to tackle their issues effectively, ensuring seamless integration, cost efficiency, and compliance.
The top three headaches.
Thredd asked hundreds of respondents to predict what the top three headaches facing payments businesses in 2024 were. Here’s what they said:
1.
Fraud concerns
2.
Rising costs
3.
Navigating regulations
The payments industry is currently addressing significant challenges that require strategic responses.
Additional focus areas include:
- Fraud Concerns (60%): Ensuring trust and safety is paramount, making robust security measures essential.
- Rising Costs (44%): Managing financial resources effectively is crucial for maintaining profitability and investment capacity.
- Navigating Regulations (41%): Staying updated with international, national, and regional regulations is vital for compliance.
- Integrating New Technology (32%): Seamlessly incorporating new technology with existing infrastructure is key for maintaining a competitive edge.
- Speed to Revenue (32%): Ensuring quick revenue generation is essential for business growth.
- Global Access and Availability (31%): Expanding services globally is important for scalability and international operations.
- Transparency and Traceability (29%): Enhancing transparency and traceability of payments builds trust.
- Credible Partners (29%): Finding reliable partners is crucial for collaboration and success.
These areas collectively influence industry growth, innovation, and operational efficiency. Our research shows that the industry is confident in how payments partners can address these challenges effectively.
We asked
How could a payments partner like Thredd ease these headaches?
Easing the Challenges.
Payments partners can effectively address the industry’s challenges through several key solutions:
- Modern Technology Stack (55%): Ensures seamless integration of cutting-edge innovations, enhancing operational efficiency.
- Variety of Services (50%): Helps manage and reduce costs through scalable, shared resources.
- Tailored Programs (34%): Provides invaluable support by designing programs that meet specific business needs, ensuring compliance and streamlined operations.
- Credibility and Reliability (24%): A strong track record solidifies their value.
- 5-Star Customer Service (32%): Commitment to excellent customer service enhances client satisfaction.
- Straightforward Commercial Structure (16%): While less prioritised, it contributes to overall clarity and simplicity.
This comprehensive approach enables businesses to stay competitive, cost-effective, and compliant in a rapidly evolving payments landscape.
We asked
Which of the following would you say is the biggest blocker to expansion plans in payments businesses?
Overcoming Expansion Hurdles.
Expansion plans in payments businesses can encounter several challenges, but with the right strategies, these can be effectively managed:
- Limited Internal Resources (35%): Enhancing internal resources can boost innovation and scalability.
- Integration with External Partners (27%): Addressing technical and operational complexities can streamline partnerships and improve efficiency.
- Internal Processes (19%): Updating and simplifying internal processes can support growth initiatives.
- Scarcity of Credible External Partners (19%): Finding reliable collaborators is crucial for successful expansion.
By investing strategically in internal capabilities, streamlining processes, and carefully vetting potential partners, businesses can overcome these hurdles and achieve successful growth.
We asked
Which of the following do you think virtual cards could help achieve?
We asked
Have you replaced legacy payment mechanisms with virtual and / or physical card payments yet?
Virtual Cards: Key to Success.
Virtual cards bring significant enhancements to the payments industry for several reasons:
- Enhanced Convenience and Accessibility (57%): Digital wallets simplify transactions, making them more user-friendly.
- Customisable Spending Limits and Real-Time Tracking (43%): These features offer unparalleled flexibility and control.
- Enhanced Security Features (14%): Unique card numbers for each transaction and advanced encryption reduce fraud risk.
- Global Acceptance and Seamless Currency Conversion (14%): These features make international transactions more efficient.
By integrating these benefits, virtual cards effectively address key industry challenges, driving greater efficiency and user satisfaction. It’s clear that respondents recognize these advantages, with nearly two-thirds already making the shift from legacy payment systems.
What's next?
The payments industry in 2024 is full of opportunities that call for innovative solutions and strategic approaches. Partnering with providers who offer a modern technology stack and a variety of services can effectively address these opportunities, ensuring smoother operations and regulatory compliance.
Additionally, the potential of virtual cards has been highlighted, showcasing their ability to enhance convenience, flexibility, security, and global acceptance.
By implementing these recommendations, businesses can boost their operational efficiency, reduce costs, and achieve sustainable growth in the evolving payments landscape. Click below to speak to one of our experts for further personalized recommendations!