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The 5 main trends that will guide business in 2023

ganerationlmn
By ganerationlmn 7 Min Read
The 5 main trends that will guide business in 2023

Since the beginning of the year, several clients and partners have asked me what the main trends are that should guide the industry in 2023. Working in the area of ​​consultancy and data analysis. Having at my fingertips a network as rich as Visa’s allows me to learn and discover new movements and consumption habits every day. It is extremely enriching to have visibility into so many trends and perspectives, as well as to be able to work with countless companies in Latin America and the Caribbean to transform data into insights and business strategies.

During 2022, we worked on several studies and analyses about the region, covering cryptocurrencies, consumer behavior, cardholder life cycle, traveler journey, and even specific analyses of sectors of the economy. All the material collected along the way and all the interviews and conversations with my colleagues at Visa Consulting & Analytics around the world and, mainly, the data from VisaNet. Helped me to debug and be able to enumerate the main trends that will define the payments scenario in 2023. Below I describe what I found:

A new generation begins to stand out

As the first generation of digital natives, generation Z (GenZ) gains relevance in the world of payments, as they enter the world of work – buying properties, acquiring credit cards, and opening bank accounts. Gen Z has different banking habits than their predecessors. Its members are digital natives and use debit products more. Prefer to pay with apps instead of using traditional cards, are careful with the use of credit, and are willing to try alternative payment methods.

It is essential that companies operating in the electronic payments sector understand and respond to the circumstances that shape the opinions and aspirations of Generation Z. Wealth is beginning to pass into the hands of this new group of users. Who are already acting as a force driving force in the future adoption of new payment methods.

A sea of ​​B2B opportunities

 

Driven primarily by the fintech community, the B2B corporate payments space is changing, and it is happening very quickly. Starting in 2023, we will have version 3.0 of B2B payments, with experiences similar to those available to consumers today. For businesses in an emergency or growth stage. There is room for more simplicity, convenience, and accessibility in terms of UX or user interface. As a result, companies are looking for more cost-effective, digital-first, and of course, faster payment services.

As growing companies are starting to look for payment providers that offer complete and integrated solutions. There is a good opportunity for new players to enter the field and create solutions that meet these needs.

Web3 technologies are important

Companies in Latin America and the Caribbean should not ignore the main technological innovations of “web3”, such as blockchain, cryptocurrencies, NFT, and the Metaverse. For example, thanks to Metaverse, large technology companies can test and launch virtual workspaces (such as Meta’s Horizon Workrooms and Microsoft’s Mesh, among others). NFTs are now more frequently seen as something more than collectibles. In the short term, regulatory instructions for web3 assets are likely to increase and thus begin to define how banks will offer digital currency products and services.

This is a good reason for companies in the financial sector to meet customer demand for digital currencies by creating and launching cryptocurrency offerings within a regulatory framework that should become clearer. Additionally. Companies should consider shifting their focus to leveraging web3 technologies through new initiatives, such as increasing employee participation in internal training hosted on Metaverse and gamified using NFT rewards.

The universalization of mobile wallets

During the pandemic, consumers accelerated the shift away from cash payments, leading to the emergence of mobile wallets and other digital card solutions to meet the demand for fast and convenient payment options. The rapid growth in the adoption of mobile wallets has been facilitated by the increase in use cases. Which are no longer restricted to the traditional payment landscape. For example. Wallets are being used as event tickets, car, and hotel keys, loyalty offers, and forms of digital identification. And payment methods on public transport. Vaccination cards, and much more.

By engaging consumers, the impacts of these new digital card solutions have been very positive. This translates into an opportunity for payment providers to review and invest in wallet strategies and other digital capabilities with the purpose of boosting their activation and use.

The consolidation of open banking

In just a few years, open banking has gained ground in more than 50 countries. In its early stages, this open banking model was generally used for basic account aggregation services. However, as it consolidated and technologies matured, it became a gateway to many applications, including real-time payments and B2B, B2C, C2B, P2P, and G2C transactions.

With the effective consolidation of this model. We can foresee new paths, from open banking, through open finance, to open data economies. The sooner brands start to understand the potential of open banking, the sooner they can benefit from it.

We remain attentive, monitoring these and several other bets that are being consolidated in our industry. Being able to continue measuring the pulse of the industry and the latest consumer trends. While supporting our clients and partners in strengthening their businesses. This is what motivates us at Visa Consulting & Analytics. We don’t just want to find trends, we want to be part of this transformation. After all, the best way to predict the future is to create it together.