As a business owner, it’s important to always have your eyes set on the future. The questions “What new challenges and trends should I prepare for?” and “How should I adapt?,” are likely constantly popping up when you think about the new year.
Technological advancements, changing consumer preferences, and global events have historically shaped the trajectory of payment methods. While there are multiple trends to look out for in the coming year, one thing is certain: 2024 will see a settling in and strong adoption of innovations that have been on the rise in recent years.
With 2024 just around the corner, it’s time to start getting ready for another year of exciting innovations and change. From digital wallets to enhanced POS security, we’ll explore the anticipated POS trends and payment processing predictions for 2024.
11 payment processing and POS trends for 2024
Enhanced mobility
The world is mobile. In 2021, the number of mobile users worldwide stood at 7.1 billion. Businesses have been increasingly changing their operations to adapt to the mobile world and meet customers in their preferred method of interaction. The mobility of transactions will be a key focus in 2024, with the continued rise of mobile POS solutions. Businesses, especially those in the hospitality, retail and professional services industry industries, will deploy mobile devices equipped with POS capabilities, allowing for transactions to occur anywhere within the business premises. This trend not only improves customer service but also provides greater flexibility for businesses to adapt to changing consumer demands.
AI-powered personalization and machine learning
In 2024, we can expect POS systems to leverage AI and ML for predictive analytics, inventory management, and personalized customer engagement. Artificial Intelligence (AI) is set to play a pivotal role in enhancing customer experiences at the point of sale. These technologies will not only automate routine tasks but also provide valuable insights into customer behavior, allowing businesses to make data-driven decisions and deliver personalized recommendations and promotions in real time.
Integrated omnichannel solutions
The customer experience is no longer a linear process. Customers browse online, buy in store, try on in store, shop online, order for pickup online, order with their phones and many other combinations of these touchpoints. They’ve also come to expect a consistent and seamless experience, no matter where they’re shopping with you. Omnichannel isn’t new, but it’s evolving and becoming a bigger, more important part of the experience for the business owner and customer. POS systems are at the forefront of this transformation.
In 2024, businesses will increasingly adopt integrated POS solutions that seamlessly connect online and offline channels. This integration allows for real-time inventory updates, consistent pricing, and a unified customer experience, regardless of whether the transaction occurs in store or online.
Frictionless checkout experiences
In 2024, the emphasis on frictionless checkout experiences is set to reach new heights. Businesses are recognizing the importance of reducing wait times and simplifying the payment process for customers. Streamlining checkout through advanced POS systems that leverage technologies like RFID, NFC, and QR codes will become commonplace, ensuring that the customer journey from product selection to payment is as seamless as possible.
Social commerce
This trend allows customers to discover and purchase products directly through social channels, creating a seamless shopping experience. Social commerce not only enhances brand visibility but also provides an avenue for businesses to engage with customers in real time, fostering a sense of community around their products and services. Keep your eyes peeled for more social commerce in 2024, as businesses integrate POS systems with social media platforms.
Digital currencies
The integration of blockchain technology and cryptocurrencies into POS systems is predicted to be a game-changer. Cryptocurrencies, such as Bitcoin and Ethereum, are gaining acceptance as legitimate forms of payment. As more businesses recognize the advantages of decentralized finance and crypto payments, the use of blockchain in POS systems is likely to increase.
Digital wallets
It’s the era of all-things-digital and mobile. Mobile payment methods like digital wallets have been growing steadily in popularity and 2024 is expected to witness a surge in their adoption. With approximately 2.8 billion mobile wallets currently in use around the world, it’s safe to say digital wallets have become a popular choice for customers looking to leave their credit cards at home. Why? Digital wallets are easy to set up, and allow customers to keep all of their cards on their phone, meaning that they’ll always have it handy. This payment method is quickly becoming the preferred choice for consumers seeking a seamless and secure payment experience and it’ll only continue in 2024.
Overall, the focus on contactless payments and the integration of digital wallets and alternative payment methods will be crucial for business owners to stay competitive and meet the evolving needs of their customers in the payment processing industry by 2024. We will also start seeing a focus on AI driven technology. Companies will need to continually evolve.
– Jamie-Lee Carlino
Senior Manager at Sekure Payment Experts
Contactless payments
With a meteoric rise during the COVID era, contactless payments are still going strong with consumers increasingly opting for touch-free payment methods. Now, most purchases are just a tap away. Near Field Communication (NFC) technology enables users to complete transactions by simply tapping their cards or smartphones against a compatible POS terminal. Contactless POS and payments are trends that won’t be going away anytime soon and are expected to continue gaining momentum in 2024, with businesses and consumers alike embracing the speed and convenience of contactless payments.
Buy Now, Pay Later (BNPL)
A notable addition to the POS landscape in 2024 is the increasing prevalence of Buy Now, Pay Later services. You’ve likely seen these pop up at checkout whenever you’re shopping online in specific retailers. This payment model allows customers to make purchases and defer payment in installments. BNPL services are gaining popularity for providing consumers with flexibility and affordability, while merchants benefit from increased conversion rates and higher average transaction values.
Subscription-based payments
The subscription-based model is not limited to streaming services; it is making its way into payment processing. In 2024, we anticipate an uptick in subscription-based payment solutions where users pay a recurring fee for access to various payment features, security services, and loyalty programs. This model offers predictability for both businesses and consumers, fostering long-term relationships.
Enhanced POS security and fraud detection
With the increasing frequency and sophistication of cyber threats, businesses in 2024 will be prioritizing enhanced security measures when it comes to their payment solutions and point of sale systems. This includes the widespread adoption of tokenization, end-to-end encryption, and biometric payment security features such as biometric authentication to safeguard sensitive customer information during transactions. Businesses will invest heavily in payment and POS security systems to build and maintain customer trust, ensure an uninterrupted flow of operations and protect themselves against cyber attacks.
Face the future with Sekure Payment Experts
From the widespread adoption of digital wallets and the proliferation of contactless payments to enhanced security measures and personalized experiences, the future of transactions is dynamic and technology-driven.
Inflation, competition, higher interest rates and supply chain issues continue to impact consumer spending. Business owners should focus on how to add value to their offerings and focus on how to grow revenue. They should be focused on adopting the right software and payment tools to accomplish this.
– Jamie-Lee Carlino
Senior Manager, Sekure Payment Experts
As businesses adapt to these emerging trends, consumers can look forward to a more convenient, secure, and tailored payment experience in the years to come. The evolution of POS systems reflects not only advancements in payment technologies but also the changing expectations of a society that values speed, security, and personalization in every transaction.
Is your payment solution 2024-ready? Sekure is here to help. With our wide range of POS partnerships and longstanding payment processing experience, we’re able to help you find the POS and payment solution for 2024 that’s right for you.
How does it work? Our Payment Experts will review your statements and give you straightforward advice about rates and equipment. Then we’ll find a customized processing solution for your unique needs, and through our Rate Sekurity Guarantee®, we ensure you’re always paying the lowest possible credit card processing rates.
Talk to one of our Payment Experts and get ready for successful 2024.
