AI is collapsing discovery and checkout into one flow, shifting control of payments upstream. New protocols, agent logic, and data control will decide which payment providers capture value.

Thanks to open banking and real-time payments, pay by bank has become a promising card alternative, offering speed, low costs, and security. But US adoption remains limited. This report dives into what’s holding it back and what can boost growth.

Visa’s retreat reflects regulatory chaos and rising data access fees, signaling broader instability for fintechs and the future of “open” banking in America.

Holiday spend, international transactions, and non-card payments boosted growth

Consumer payment method choice will expand in 2025 as real-time “pay by bank,” iPhone NFC access, and digital credentials take center stage. And financial media networks will turn more payment providers into marketers.

Payment providers are going all in on A2A payments despite limited retail uptake. Focusing on bill payments can help Plaid’s solution gain traction.

The open-banking-powered card offering brings together the benefits of A2A payments with the ease of card payments. Innovations like this could spur A2A payments usage globally

It plans to launch a dedicated A2A service next year with more protections and controls as adoption of the payment method is much further abroad than in the US

A flurry of product and services launches will help Visa stay competitive and diversify away from swipe fee revenues

In the second of five reports in our “Payments Ecosystem 2024” collection, we look at what’s influencing how consumers are paying today—and what payment providers can do to capture a larger piece of the retail spending pie.

Acquirers, networks, and issuers each play distinct roles in the payments purchasing chain. But those roles are shifting as providers adapt to the rise of software and value-added services, increased payment method choice, and cloud-based innovation.

Fintechs, banks, and the government will reshuffle the payments deck in 2024. New features and competition will redefine the digital wallet user experience, and FedNow will pivot payment flows in new directions.

The launch of the real-time payments system could disrupt the US payments landscape, but it may be a couple of years before its real ramifications are clear

Proximity mobile payments are finally reaching a critical mass of users, fueling spending growth. While it will slow in the coming years, providers are capitalizing on growth by building multifunctional ecosystems that expand their captive audience and tighten relationships.

Payment service providers competing to serve small and medium-sized businesses have a new opportunity to win them over with cutting-edge payment, cash flow, capital, and marketing tools.

This year will be a litmus test for trying new things. Payments incumbents that embrace change on their own terms will emerge stronger than before.

Open banking eliminates many of A2A payments’ pain points, making them an even more attractive option for merchants.

Both companies are letting customers pay for purchases directly from their bank accounts, which might help limit interchange costs for merchants.