9th Dec 2024

Sean Moriarty on payments in 2024 and the outlook for 2025

As we wrap up 2024, we look back on a year in which new technologies have continued to reshape financial processes while old challenges have resurfaced in unexpected ways.

As a CFO, I wanted to share my reflections on the last 12 months and my predictions on the coming 12 as we continue to build towards a global economy that enjoys more secure and efficient financial operations.

 

2024: A year of fraud awareness and technology uptake

As the trend toward making payments frictionless grows, fraud protection emerged as a central theme in 2024, with businesses finding themselves vulnerable to fraud attempts.

The industry has finally recognised the magnitude of these threats, and as a result, there has been a collective shift toward practical fraud prevention measures.

This awareness was further heightened by data shared openly on reported fraud cases, which shone a light on the greater need for transparency and protective measures.

One of the more noteworthy technology solutions adopted this year was ‘account name verification’ and similar digital verification tools from companies like Mastercard.

These innovations have offered businesses a way to stay secure while continuing the move toward streamlined payment processes.

However, despite these advancements, businesses remain cautious. Legacy systems still have a firm grip on many organisations.

While finance teams understand the importance of automation, they are wary of the costs, risks, and potential time lost in transitioning to newer systems. This wariness underscores the tension between the drive for innovation and the challenges of implementing change.

2024 also saw an increase in global business operations, with companies expanding across borders and working with diverse supplier bases. Coupled with remote working dynamics, this global reach introduced complexities in secure transactions.

As businesses sell and source internationally, the demand for secure, consistent financial interactions has only grown and reinforced the need for technologies that can support seamless, cross-border payments.

 

2025: Strengthening fraud prevention through collaboration

Looking to 2025, I expect to see a continued push toward integrated fraud prevention measures.

Rather than leaving businesses to patch security gaps independently, banks are likely to embed fraud prevention directly within their services. As well as simplifying the process for businesses, this approach will provide essential safeguards right out of the box.

To achieve this level of fraud prevention, we’ll likely see increased partnerships between banks and technology providers, with fintech companies taking the lead on innovation. By leveraging the tech expertise of fintechs, banks can roll out comprehensive solutions that meet the demands of today’s businesses.

The challenges of fraud mitigation, better connectivity, and global transaction security will all contribute to a familiar trend in 2025. Although the financial industry has made strides, these persistent issues will continue to evolve in response to changing market demands.

Technology will undoubtedly offer new tools to address various pain points in each, but I imagine the underlying issues of secure, efficient global payments will remain at the forefront of industry concerns.

The potential of AI in fraud detection is also on the horizon.

While the technology could transform fraud detection, it poses a unique challenge: the same AI-powered tools used by defenders of cyber security will also be accessible to attackers.

In what will become a constant battle between security advancements and fraud tactics, the future of AI in finance is as promising as it is complex.

 

Moving forward

As we cross the threshold into 2025, the industry is poised for considerable developments, particularly in fraud prevention and cross-border payment solutions.

2024 underscored the importance of adapting quickly while maintaining security, and 2025 will likely see a deepening collaboration between banks and fintech companies to meet these needs.

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