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Dramatic shifts are in the works for 2024, as BaaS, social media players, genAI, and new digital wallets reshape the banking landscape. Our top trends explore what’s in store.

And Afterpay partnered with Rokt last week to display targeted offers in Afterpay’s checkout, which can help boost basket sizes. 3. Gift cards will be the second-most popular retail gift category, behind clothing. More than one-third (37%) of shoppers plan on buying gift cards this holiday season, per i2c and PYMNTS.

The 2024 holiday season is forecasted to top $1.353 trillion, according to Ä¢¹½AV. To thrive in this high-stakes period, businesses must embrace opportunities like AI-driven personalization, seamless payment options, and the longer gift-buying season.

But there's a difference between those more structured payment plans and a true BNPL plan like Afterpay offers. People are pretty bearish on the business model right now. I was always a little bit of a BNPL skeptic because it’s fundamentally a deconstructed credit card and the merchants are paying for it. But that doesn't mean we would never do it. Click here to read the full Q&A.

And BNPL firms like Afterpay and Sezzle have forged partnerships with healthcare providers. Newer fintechs like Walnut have also entered the fold. But closing this gap has raised concerns that some of these products may be doing more harm than good, particularly for financially vulnerable patients.

Block’s revenue contribution was primarily driven by Cash App, with Afterpay and the Square debit card also playing a role, Marqeta CFO Mike Milotich said on the company’s earnings call. Here’s a breakdown of Marqeta’s TPV performance on a vertical basis. Financial services: TPV growth was slightly faster in Q4 than in Q3 thanks to increasing Cash App card penetration.

Block closed its acquisition of music streaming service Tidal and also announced plans to purchase Afterpay. Expanding into these diverse segments made us believe it would eventually house them in one super app platform. Block also rolled out a flurry of new solutions in 2021, like bank accounts and crypto services—deepening its reach into new business and consumer segments.

BNPL volume from Afterpay jumped 25% to nearly $7 billion. Square gross payment volume (GPV) rose 6% to $50.46 billion—and rocketed 23% outside of the US. Nearly one-quarter of Square’s revenues came from banking services during Q1. Block also disclosed that the $220 million Bitcoin investment it made in 2020 and 2021 has ballooned 160% to $573 million.

Providers like Afterpay and Klarna offer digital payment and financing options that aren’t tethered to card rails. Their popularity is mounting, with more than 2 in 5 US digital buyers (and nearly 3 in 5 Gen Z digital buyers) set to use the technology in 2023, per our forecast.

Big names like Affirm and Afterpay have started pushing their presence in the market. Among converts are credit card holders, 17% of whom would consider using BNPL instead of their card for a large purchase, per a 2022 J.D. Power survey. In response, more merchants may start accepting the payment method. The demographics: Younger consumers are driving the uptick in volume.

Australia was already a competitive market to operate in—it’s home to BNPL giants like Block-owned Afterpay and Zip, and other providers like Klarna and PayPal have also moved in. Combined with macroeconomic headwinds, this could have made it difficult for Affirm to grow its business in Australia.

But there's a difference between those more structured payment plans and a true BNPL plan like Afterpay offers. I think you've got to be very careful how you manage that product in a rising interest rate environment and potentially a worsening credit environment. People are pretty bearish on the business model right now.

The digitization of the store—retail’s next megatrend—will transform the shopper’s path to purchase and industry economics for retailers and brands.

Growth in digital account openings for credit cards is slowing, thanks to tightening standards and changing generational behaviors. But issuers are utilizing new tools to keep it afloat.

Mobile P2P payments are struggling to capture users in Canada. But banks and digital wallet providers can lean into their respective strengths to create a rosier outlook for growth.

Digital payment methods continue to displace cash and checks in the US payments ecosystem. But after a pandemic-driven crest, growth is moderating amid economic uncertainty, resetting the stakes for share of wallet.

UK mobile P2P payments usage growth has a case of the doldrums—but bank and digital wallet providers can explore several options to give it a boost.

The debit card gave Affirm a boost in active users and strong numbers, but to continue this pace of growth, Affirm may need to get creative

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.

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.

One of the oldest advertising channels on the internet continues to expand, attempting to break through from its current marginal position.

It also includes features to minimize checkout friction as Google Pay tries to streamline the experience

Sezzle and Klarna made progress toward long-term profitability in 2023—we look at how they’re using subscriptions to help make that happen

The company is trying to cut costs as it focuses on profitability ahead of going public