What to Expect from the Payments Space in 2024

Duygu Inanc Koyunpinar, Head of Product at DIMOCO Payments,

looks at what we can expect from 2024. 

With 2024 just over the horizon, it’s time to take stock of the industry. With the internet reshaping the way we engage socially, professionally, and financially, there are constant changes that merchants and service providers need to keep up with to stay relevant. In this exploration of the payments ecosystem, our focus turns to the payment trends set to define the year ahead.

Carrier Billing

Digital payments are constantly under transformation, and amidst this change, traditional methods are acquiring new relevance. One such stalwart is carrier billing, a concept with a longstanding history that is now experiencing a resurgence. Clemens Leitner, the CEO of DIMOCO Payments, recently highlighted its untapped potential in an interview with The Paypers. What was once primarily associated with less salubrious digital goods has expanded its reach to encompass diverse sectors such as electronic vehicle charging, micro-mobility, and even vending machinesAs the mobile phone strengthens its position as the gateway between our physical and digital selves, its use as a payment method grows.

However, during this years’ Global Carrier Billing and Mobile Payments summit the topic of user awareness was addressed. Currently, carrier billing is not a top-of-mind payment method for the majority of users. This can be an issue that could impede its growth. The benefits for consumers are many, streamlined user experience, secure payment method, financial inclusion for unbanked, and easy access. At DIMOCO Payments, as an aggregator and technical provider at the heart of this payment method, we believe we are playing a crucial role and focus our efforts on this pain point with support from network operators and other aggregators. The technical infrastructures are up and running, the ecosystem has been end to end mobile oriented, and recognition over heavily used platforms such as Appstores has been increasing. We believe we are on the edge of increased adaptation for this payment method to reach its full potential.

Mobile Payments

Mobile payment is an umbrella term to cover all payments that are made using a mobile device. We should be aware that there is always a payment instrument / method behind the mobile device such as cards, wallets, or carrier billing. Each has its own user base, experience and adaption depending on end user preferences as well as the simplicity of the user experience they provide.

These payment methods will continue to grow as once set up they are seamless and easy to use, and more and more purchases are being made on mobile devices. Overly the last year, it is estimated that just over half of all online purchases were done on a mobile device. This trend will only continue as more digital natives come of age.

Buy Now Pay Later (BNPL)

BNPL is one of the more contentious payment methods. Its premise is simple, get the product now but pay for it in manageable smaller chunks. Again, the payment method is not new, and iterations of it have been around for years. However, instead of it being used on expensive items, such as sofas or televisions, it is now available on fast-moving consumer goods such as clothing. And it became widely popular during the pandemic.

According to Juniper research in 2026 BNPL is expected to account for almost a quarter of all online purchases. Whether the payment method is sustainable in the long run remains to be seen. With more and more reports coming out about the debt and credit risk, consumers need more education about the risks involved as well as more regulations for the providers are upcoming to ensure end customers are protected.

Crypto & CBDC

What list would it be if it did not include crypto, every year we are told that crypto will take over and be the next big thing. Even though Bitcoin halving is going to happen this year, it looks like Crypto payments are still far away from finding their places within the mainstream. But, we cannot say the same with the most recent developments on the CBDC (Central Bank Digital Currencies) as currently there is high pressure and demand from European Central Banks to create their positioning finally. So, through the end of the year, we will all be watching the developments of new digital money solutions and wallets all over the payment industry.

Cards

Why cards continue to be a strong player in the payments landscape despite the recurring narratives predicting their demise is a testament to their enduring relevance. Although they no longer wield the monopoly, they once did a decade ago, cards maintain a pivotal role within the payments ecosystem.

The secret to their resilience lies in their familiarity. Card payments are rooted in the habits of a vast online user base as well as providing a strong standardization overall. Convincing individuals to change their preferred payment method is no small feat, especially when cards offer a tried-and-true option. Moreover, the integration of cards into mobile payments and eWallets has streamlined their use, providing users with the convenience of storing card data securely with tokenization solutions. With advancements in user experience enabled by mobile devices such as biometrical authentication, completing transactions has become a seamless experience. In a landscape teeming with alternatives, cards not only endure but continue to thrive, anchored by their adaptability to the evolving demands of the modern digital era.

Open Banking

Since psd2 open banking has been a hot topic. With a European directive forcing banks to give access to third parties we have seen an explosion in providers and services. As the method is account to account payments it is a much faster way of making payment and protects merchants against chargebacks.

Although its adaption has been very much delayed than expected, finally open banking is making strides and is gaining in popularity across Europe as more and more people are seeing the benefits of it as a payment method and the solutions the banks are providing has also reached to a more mature stabilization. This enabled all providers like us to be able to ensure a smooth end user experience. You could have the best and most secure payment method out there, but if the end user must jump through hoops, you are going to struggle to get them on board.  We are looking forward to even more frictionless payments adjustments with PSD3 just around the corner.

The Power of Data and AI

In addition to offering diverse payment method coverage, it is essential for every payment provider to recognize the significance of leveraging data and adopting AI solutions. While the initial focus of AI is understandably on risk management and intelligent fraud prevention, the dynamic nature of the industry suggests that AI’s influence will extend beyond these realms. Our primary expectations lie in enhancing user experience and implementing intelligent routing solutions within this domain.

User Experience

User experience is the cornerstone of any successful payment method. Simplicity, efficiency, and security are paramount, and a seamless user experience encapsulates these essential elements. Users must be able to navigate the system effortlessly, reducing friction and frustration. Why is it so important? It directly influences trust and confidence. Users are more likely to embrace a payment method that not only meets their functional needs but also provides a positive and secure interaction.

It’s clear that the payments ecosystem is diverse and dynamic. From the resurgence of carrier billing to the continued strength of traditional cards, each method brings its own set of opportunities and challenges. The rise of mobile payments, the popularity of BNPL, the persistent promise of crypto, and the advancements in open banking all underscore the constant evolution in how we conduct transactions. And there is never a one solution fit all in payments. Every consumer finds themselves a different convenience in this diverse space.

However, one constant remains paramount: user experience. For merchants gearing up for 2024, the challenge lies in finding the delicate balance between regulation, security measures, provider management and ensuring a seamless, user-friendly experience.

Merchants can turn to experienced payment providers for solutions that offer not only a variety of payment methods but also advanced fraud prevention and essential features, such as smart routing. This ensures not only secure transactions but also a smooth reconciliation process.

I am excited to take part in the evolution of payment in 2024. Are you?

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Personal Data Policy Table of Contents for the Career Portal

1. General information

The DIMOCO Careers Portal is a platform that is designed to centralize and manage job applications made by applicants for positons within DIMOCO, and is operated by DIMOCO Payments GmbH, a company incorporated under 199901 y of the company register of the Regional Court of Wiener Neustadt, Austria, having its registered offices at Campus 21, Europaring F15/302, A-2345 Brunn am Gebirge, Austria. As such, DIMOCO Payments GmbH is to be seen as being the controller of the data.

For the purposes of this Policy:

  • any reference to “You” or “Your” shall mean the job applicant.
  • any reference to “DIMOCO” , “We” , “Us” or “Our” shall mean the entities of the DIMOCO group of companies, in particular, but not limited to:
  • DIMOCO Payments GmbH
  • DINAPE Solutions GmbH

2. What Data Will Be Processed?

During the application process, We will store and process the relevant information (including personal data) provided by You in Your application to DIMOCO, including particularly, but not necessarily limited to, Your gender, academic title, first name, surname, date of birth, address, citizenship, phone number, e-mail address and possession of a valid work permit in Austria as well as other data included in documents You chose to upload to the DIMOCO Careers Portal, such as CVs or recommendation letters, etc. We do not at any stage of the application process request that You provide Us with any sensitive personal data (e.g. information on racial or ethnic origin, political opinions, religious or philosophical beliefs, trade union membership, genetic or biometric data, as well as data concerning a natural person’s sex life or sexual orientation). Should You, however, proactively disclose any sensitive personal data to Us in Your application (e.g. in Your curriculum vitae), please be advised that We will consider this as You giving Us Your express consent to store and process such data in accordance with this Policy and applicable laws.

3. What is the Purpose of the Data Processing?

We process the data made available by You for the sole purpose of carrying out the application process, and in particular to assess Your application and contact You in connection with Your job application, and if applicable, future job openings at DIMOCO (the “Purpose”).

4. How the Data Will Be Processed?

The data You provide Us will be kept confidential and will be processed with due care, appropriately and in a way adequate and relevant to the Purpose expressly stated in this Policy. The data will be processed in compliance with applicable laws, in particular the General Data Protection Regulation (GDPR) of the EU as well as with the relevant provisions of the Austrian national law. The confidentiality and security of Your data is secured by appropriate technological and organizational means.

 

Each time You access the website of the DIMOCO group of companies (and by extension the DIMOCO Careers Portal), a so-called log file that records Your activity on the DIMOCO website will be created. This log file can collect information on the name of the webpage(s) You accessed, the date and time of Your request, the type and version of Your browser, Your operating system, the URL-address that directed You to the DIMOCO website and Your IP address. We use these files in order to protect the DIMOCO website against unlawful and criminal attacks. Furthermore, may We use these files to gather statistical data in order to optimize functionality of the DIMOCO website. The information gathered by the log-files is not at any point used in a way that could allow an identification of specific users.

 

The website of the DIMOCO group of companies (and by extension the DIMOCO Careers Portal) also uses small text files (cookies) that enable the storage of device-specific information on the system on Your PC, laptop, tablet, mobile phone, etc. Cookies do not cause any damage to Your device and do not contain or store any personal data (e.g. name, e-mail, phone number, etc.). Some cookies are saved on Your device and stay there until manually deleted. The cookies are used in order to recognize Your browser next time You visit the DIMOCO website as well as to optimize its functionality.

 

Please note that You can change the preference of Your browser at any time, such that You are informed in case that cookies are being used and have the possibility to allow the use thereof on a case-to-case basis. Please be advised that the deactivation of cookies could limit the functionality of the DIMOCO website.

5. Who Has Access to Your Data

No personal data You provide Us will be made available or transmitted to any third party without Your express permission. Access to the data provided by You will only be granted to authorized personnel of DIMOCO, particularly the HR department of DIMOCO Payments GmbH and the relevant DIMOCO managers responsible for the particular job vacancy You have applied and/or are being considered for.

6. The legal basis of processing and Your Permission and Rights

The processing of Your data for the Purpose is based on Your voluntary permission given expressly in the application process (Article 6 para 1 lit a GDPR). We are not permitted to and shall not process any of Your personal data without Your consent.

 

Even though the provision of certain information in the application process is stated as being “mandatory”, please note that You are by no means under any legal obligation to disclose such information to Us. Please be advised, however, that the non-provision of the information stated as being “mandatory” could have the result that We will not be able to consider or process Your application.

 

We are required to keep Your personal data for a period of 6 (six) months following the end of the application process. All of Your personal data will be erased automatically thereafter, unless You gave Us the right to store and process Your personal data for a period of up to 1 (one) year so that You can be considered for future job opportunities at DIMOCO. In this latter case, all Your personal data will be automatically erased after the lapse of the 1 (one) year period.

 

You should know that You have the following rights with respect to the information (including personal data) that You provide Us:

 

  • You have the right to limit or withdraw the consent You gave Us to process Your data and/or request the deletion thereof. If You should choose to limit the consent You originally gave Us, then We will act in accordance with Your instructions. If, however, You should choose to withdraw Your consent entirely, We will cease to process Your data immediately and will delete Your data accordingly. Please be advised that the limitation/withdrawal of Your consent or the request for the deletion thereof may automatically suspend any application process that has already started.

 

  • You have the right to request Us to inform You about the personal data We have stored about You.

 

  • You have the right to request Us to amend any incorrect data that We have stored about You.

 

  • You have the right to data portability, which means that upon request, We will transfer Your data to a third party that You nominate.

 

  • You have the right to lodge a complaint to the Austrian Data Protection Authority (Datenschutzbehörde) in the event that You are of the opinion that a breach of data security has occurred.

 

You can exercise the aforementioned rights at any time.

 

If You have any questions about Our data security or Your application, please do not hesitate to contact Us:

 

DIMOCO Payments GmbH

DIMOCO Human Resources Department

Campus 21, Europaring F15/302

2345 Brunn am Gebirge, Austria

E-mail: careers@dimoco.eu

Telephone: +43 1 33 66 888 – 0