The Payments Innovation Jury has unveiled its 2024 report, Market Meltdown – Impacts on Infrastructure, Regulation, and Innovation. This report sheds light on the perspectives of global payment leaders regarding the turbulent macroeconomic shifts of the past two years, exploring both the positive and negative effects on their industry.

The report delves into various aspects of the payments industry affected by recent market upheavals, presenting several key findings.

Previously inflated payment company valuations and funding rounds were attributed to investors’ eagerness to bid up deal prices, often at the expense of profitability. The report claims that this speaks to a climate of prioritising early profitability over hyper-growth, a shift overwhelmingly viewed positively by the jury, though consensus on its long-term implications remains elusive.

The report also states that businesses specialising in AI and climate fintech tools are poised to benefit from redirected investments away from payment ventures.

With regards to payments as an industry, the report says that emerging markets, where cards have yet to gain significant traction, may face challenges competing with account-to-account payments and mobile money solutions. While credit and debit cards maintain dominance in developed markets, achieving growth will be more arduous than before.

Banks are projected to emerge as the predominant players in global mobile wallets, overshadowing fintech firms and mobile network providers.

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Like many industries, the report concedes that talent acquisition poses a significant challenge for payment enterprises in emerging markets, with nearly 60% of jury members expressing concerns about losing staff, jeopardising innovation initiatives and operational continuity.

The report was written in collaboration with the World Bank and supported by Interswitch, FIME, and HPS, the 2024 Payments Innovation Jury boasts its most diverse composition in its 16-year history. Comprising 136 jurors from various corners of the globe, all holding senior positions in national payments companies, banks, fintech firms, payments policy bodies, central banks, and investment institutions.