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Giesecke+Devrient: Payment Trends for 2023 – Beyond the Hype

Payments have evolved drastically in the last decade as the push for personalisation and a personalised experience have grown to be a customer’s top priority. But simply adding a design to a physical card isn’t enough. Especially in the ever-digesting world we live in now. So what sort of trends are taking place?

Rüdiger Vogt, head of payment 4.0 and leading the business with fintechs, neobanks and payment aggregators at Giesecke+Devrient (G+D), shares with The Fintech Times his views on payment trends in 2023.

Vogt’s mission at G+D is to make next-generation payment easy – globally. He joined G+D in 2008 and held several leadership positions in international sales and product line management. Before that, he was VP of key account business, headed strategic marketing and worked in product management in the semiconductor industry at Infineon Technologies and Qimonda in Germany and the US.

Payment Trends for 2023 – Beyond the Hype
Rüdiger Vogt head of payment 4.0, Giesecke+Devrient
Rüdiger Vogt head of payment 4.0, Giesecke+Devrient

When does hype become tangible? For me it was when the question ‘Was it a mistake to buy Bitcoins?’ became part of casual conversations at parties. And sometimes it is tough to see through the hype. Let’s take a closer look at what really to expect in payment for 2023.

Authentic sustainability in payment

Issuers see the payment card as an important physical connection between the fintech (or bank) and their clients. An eco-innovative card,  for instance, made of ocean plastic material, is a symbol of change and should be part of the broader sustainability program that a fintech or bank offers to their clients.

Combining physical cards with digital solutions empowers consumers to take every-day eco-action themselves. The customers’ carbon and water footprints are calculated automatically via their banking app. Therefore, they can offset unavoidable emissions through impactful carbon-removal projects that the banks refer.

Convenience in a secure way

Consumers like to save their card information at a merchant for instant online checkouts. This is in addition to recurring and subscription payments. While some consumers have security concerns, some are getting tired of updating their expired cards on file regularly.

The solution is storing only a client identifier at the merchant, and then each transaction has a cryptogram or token that is generated using a major payment scheme via a Token Service Provider. This reduces declined transactions and ensures an automated update of the card details. In addition, a token cockpit in the mobile app keeps the consumers informed of where their payment card is stored. It allows them to remotely manage the lifecycle of their cards at the merchant or through their digital wallets.

Physical and digital are merging into ‘phygital’

A good example of this is the phygital card issuance journey that is demanded by the market. Signing up for a bank or a fintech is the first crucial moment of this journey. Clients can choose, design and customise their own card artwork in the mobile banking app.

In real-time, a virtual card is issued right away for active usages, such as for online shopping or mobile payment. While the physical card is being produced and shipped, digital updates will be sent securely to the consumer via the mobile banking app.

The card arrives with a personalised carrier with personalised and highly relevant information. That can be an invitation to a special event or a QR code that will take the cardholder to an augmented reality experience for activation. The customers can engage and learn more about the benefits of the bank’s offerings.

Express yourself – lifestyle and payment

In recent years, many fintechs are already differentiating themselves with outstanding payment card offerings that represent their unique brand and services. More specifically, comprehensive packages for exclusive travelling, green investment plans or cooperation with big commercial or fashion brands are part of their services. Metal and glow-in-the-dark cards were introduced. Soon, we will see materials like wood, ceramics and paper coming into the market,  and exciting designs with OLED or 3D effects.

With mobility picking up again in the post-covid era, ‘invisible’ or ’embedded’ payment on the go will become more important. It means payments are happening almost unconsciously in the background. Using Uber as an example, payment is made automatically the moment the passenger gets out of the car. We also see electric vehicles pay ‘by themselves’ at the charging stations. We can also easily do grocery shopping without lines and in-person payment at the cashier.

In the fintech world, we can see great examples of how to leverage on these trends: CashApp introduced cards with personalised designs, WLTH announced a Partnership with Parley, Amazon Go embedded payment entered Whole Foods. And Doconomy and Patch offer solutions to track and compensate CO2 emissions based on daily payment transactions. More to come – an exciting 2023 ahead.

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