Payments Innovation Jury highlights global payment shift

The Payments Innovation Jury has released its 2024 report that investigates the impact of worldwide economic changes over the past two years on the global payment sector. The report, titled 'Market Meltdown - Impacts on Infrastructure, Regulation and Innovation', was conducted by John Chaplin and relied on the insights of senior payment industry leaders from central banks, regulators, banks, fintechs, and investors. To ensure unbiased and open discussions, all participant responses were given anonymously.

A key finding of the 2024 Payments Innovation Jury report was the shift in focus from rapid growth to early profitability among payment companies. It emerged that earlier high valuations for these companies were largely the result of investors driving up deal prices while paying insufficient attention to profitability. While the jury deemed the shift as a positive development, there was no consensus over whether this represents a long-term market correction.

The report also pointed to the damaging impact of significant crypto exchanges' failures on global market confidence beyond just those markets where failures occurred. It highlighted the example of the high-profile failure of FTX in the US, driving home the adverse effects such events can have on global confidence.

In emerging markets where cards have yet to gain a substantial foothold, they are expected to face stiff competition from account-to-account payments and mobile money. Though cards may maintain their leading role in developed markets, future growth is expected to be more challenging.

The report also identified talent acquisition as a considerable point of contention, especially in emerging markets. Companies in these markets are finding it difficult to compete with talent acquisition activities of organisations in developed markets, leading to negative implications for innovation and even ongoing operations.

John Chaplin, Founder and Chairman of the Payments Innovation Jury, reflected on the findings, "Looking back on the last two years of market turmoil, it feels like this unique insight from industry leaders has never been more needed. Our Jurors deep understanding of the causes and effects of macroeconomic changes and their impact on the long-term direction of the payments industry helps all of us understand how we can best move forward and continue to weather the storm."

Diversification was another significant theme of the report. The 2024 Payments Innovation Jury was the most diverse in its 16-year history, boasting 136 Jurors from across the world. Central banks & regulators and investors witnessed a 25% increase in representation, enabling a more comprehensive picture of the challenges and opportunities ahead for the global payments industry.