This week, we dive into the Federal Reserve’s 2023 Diary of Consumer Payment Choice, highlighting the continued dominance of credit cards and the stabilization of cash usage. Additionally, we cover Apple’s concessions in the EU Tap-to-Pay dispute, growth in both U.S. realtime payments networks, and new guidelines from China on payment services for foreigners, and more insights into the business of digital wallets. 2023 Findings from the Diary of Consumer Payment Choice Findings from the Federal Reserve’s 2023 Diary of Consumer Payment Choice reveal that debit cards remain the most popular paym ..read more

As part of our commitment to providing relevant payments and FinTech news and analysis, we’re excited to announce our new weekly report. Each week, we’ll highlight some of the most interesting and relevant articles in the industry. This week, we’re highlighting recent payments reports. From the transformative power of real-time payments to the potential of tokenized deposits and the rise of financial automation, these reports offer a deep dive into the innovations shaping the financial landscape. We hope you find this information as valuable and exciting as we do. How Real-Time Payments Work—A ..read more

At a recent event hosted by 1871, industry leaders gathered to share critical insights into the future of fintech, emphasizing the importance of innovation, collaboration, and responsible practices. The discussions highlighted emerging trends, challenges, and opportunities within the fintech sector, particularly in the Midwest. Of particular note was a discussion on the need for more female representation in fintech. Speaker Cathy Snellinger highlighted a key initiative aimed at addressing this gap: a selective accelerator program for female founders. “We select five high-potential female foun ..read more

Embedded finance – the seamless integration of financial services into non-financial digital environments – is revolutionizing the way businesses and consumers interact with financial products. Once in the sole provenance of traditional financial institutions, these services are now being woven into the very fabric of digital commerce, from shopping platforms to social media apps, often without users even realizing they’re interacting with sophisticated banking technology. This transformative approach to banking is driven by technological innovations that have blurred the lines between sectors ..read more

As the FinTech industry strides through 2024, it finds itself at the heart of a technological revolution with Artificial Intelligence (AI) beginning to stand out as one of the drivers on the charge. This era of innovation is remapping the contours of financial services, making operations more efficient, enhancing security measures, and personalizing customer experiences. The role of AI in this transformation is critical, offering a glimpse into a future where financial services are more accessible, secure, and tailored to the needs of a digital-first population. This wave of change is underpin ..read more

Richie Serna, CEO of Finix Payments, has had a front-seat view of the rise of FinTech payments. In a conversation with Collin Canright, Richie talked about His on-the-job education in payments integration. The influence of his immigrant parents and how Finix got its name. Competition with FinTech payments leader Stripe. The history of payments distribution. The future of realtime payments and SaaS platforms. Collin: How did you get into payments? Richie: One of my close friends and mentors was the cofounder of Balance (which provides B2B payments services). He loves to say that it’s always h ..read more

The year 2024 stands as a landmark in the financial services landscape, marked in part by an expectation of continued growth in neobanking. Referring to a new breed of financial institution, these digital-first organizations are redefining the traditional banking model, catering to the modern demands for rapid, efficient, and personalized financial services by operating solely in the digital space.  Reflecting a major shift in the market, the global neobanking sector, which was valued at USD 66.82 billion in 2022, is projected to expand at a compound annual growth rate of 54.8% from 2023 ..read more

Much of my knowledge of payments comes from my daily usage. Like many consumers, I want things that work without me thinking about them. I never especially adopted mobile payments, for instance, because I found using my phone was harder than cash or a card. 1 Contactless Payments. I wait impatiently for people to scan their mobiles when a tap of the card is so much faster. It isn’t new, but it has way less friction. I imagine card transactions have increased as a result, especially given the card advertising I’ve seen. 2 Money Men. This is a book, not a payment mechanism, but it underlies the ..read more

These are the top five articles our readers opened in email this year. Emerging payments articles topped the list, with digital assets holding their own. It is, however, important to keep in mind that many of the decisions on what makes a year-end list were made months ago. We did, for instance, write as much about WealthTech this year, and we chose to cover digital assets from the perspective of payments utilities and investment research. That said, here’s what you read. 1 Planning Adoption of the Emerging Technologies Changing U.S. Payments Services Traditional payment systems that require d ..read more

This post grew out of watching demos at Finovate Fall 2023, in New York. Given that 2023 is the year of AI, it was no surprise that AI played some role in most of the demos and many of the panels.  The main essence I noticed in the demos was their focus on applications that connect to banks to supplement their clients’ financial needs. Many of the FinTech firms seek to provide their systems on a white-label or affiliate means to gain access to bank customers.  My initial assumption is that I was seeing embedded finance, and some of the firms characterized themselves as such. Emb ..read more