# 4 Payments Industry Predictions – What Will Disrupt the Market in 2022? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-11-30 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Top 2022 Payments Trends: IoT, BaaS & Hyper-personalization Meta Description: Discover how Internet of Payments, Banking-as-a-Service (BaaS), and Hyper-personalization are reshaping the payments market. Stay ahead of the game with URL: https://financedigest.com/4-payments-industry-predictions-what-will-disrupt-the-market-in-2022html ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/closeup-portrait-of-a-male-hand-giving-money-sbi-300854922-1736836784951-compressed.jpg) _![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/216-1736836784940-compressed.jpg)_ _By **Marius Galdikas**, CEO at ConnectPay_ **_The most prominent disruptive forces, that are going to impact the payments industry in the upcoming year._** Having dealt with the initial pandemic aftershock, this year the key areas of focus for businesses were building economic resilience and improving customer experience. With the new year just around the corner, Marius Galdikas, CEO at [ConnectPay](https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATUbpJ1dIhmafuYdk7EORYJgY-3DOefd_tYU6GgO29C0hJO-2BuOcp5sHJKGLM7ySMgb5eKv-2FFPzeEa0op3hrDN-2B5MUx9dgtS18NU2redmx-2BBX74BVuEf4vXpg0rDN5kB97O1SOfD1E4EwTzrhq3Qd2DpltXnCX3Sf-2BQ-2BEtgN02HXrwbDMCGCesehg84GWSudd9qfT9Agg3TM-2BsrdBhzJTSbqYAVskLlnYAXmYqRm1SlWqcWwoYokSeUFLIzwTO06llbU6C61ldoxSj116sV8J2v0Likixi4ElK4Z59cpO9-2Bqi-2BxbRCzxzxRI3mSsNqfjzJdM2rv8ax-2Fo-2B1-2BmqGm6bFKVm8dvhPMiziMgjOkmPbrRu0pr6Fn3W31wtd9Os14oOPqogcXue9c28-3D), has commented on the main forces that will be shaping the payments market in 2022 as well as what payments market players should keep an eye on. **Internet of Payments** It is [estimated](https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATUeopeDoNdJFphbrP9k9g7rOr40-2BDxU9sEIwO8QomWk8PDSBEIrLc5n3b-2BmsnfhnnCg-3D-3DF3a5_tYU6GgO29C0hJO-2BuOcp5sHJKGLM7ySMgb5eKv-2FFPzeEa0op3hrDN-2B5MUx9dgtS18NU2redmx-2BBX74BVuEf4vXpg0rDN5kB97O1SOfD1E4EwTzrhq3Qd2DpltXnCX3Sf-2BQ-2BEtgN02HXrwbDMCGCesehg84GWSudd9qfT9Agg3TM-2BsrdBhzJTSbqYAVskLlnYAXmYqRm1SlWqcWwoYokSeUIwteyzWufVVDlSYulrw-2FJNhER0PxBMstMXfZbH61j6gM2WNlpnxDILwiBg0jOWvYRq-2FulJoW6v73oZMgw08KoMSHzemq64SRCYOuS2M5CRUraqhru9oOipiXPjz3l9if88-2FE05pn2jcK0FVOFbZad8-3D) that by 2025, there will likely be more than 27 billion Internet of Things (IoT) connections. The growing number of IoT [devices is rapidly](https://www.financedigest.com/rapid-action-force-regarding-innovations-to-drive-the-medical-devices-market.html "Rapid Action Force regarding Innovations to drive the Medical Devices Market") shaping the everyday habits of consumers, including the way they choose to pay. This led the financial world to coin a new term—Internet of Payments (IoP)—which refers to a phenomenon that enables [payment processing](https://www.financedigest.com/are-your-payment-processes-in-cheque-for-the-new-legislation.html "ARE YOUR PAYMENT PROCESSES IN CHEQUE FOR THE NEW LEGISLATION?") over IoT devices, for example, smart home assistants, like Amazon Alexa, or smaller everyday accessories, such as Apple Watch. IoP is currently at a nascent stage, however, as the market is becoming more saturated with IoT-driven devices, [payments market players need](https://www.financedigest.com/stay-ahead-of-the-curve-and-meet-your-customers-payments-needs.html "STAY AHEAD OF THE CURVE AND MEET YOUR CUSTOMERS PAYMENTS NEEDS") to develop a blueprint on how to take advantage of this disruptive force. “The merge of IoT and [payments brings consumers extraordinary convenience with reduced](https://www.financedigest.com/how-can-you-reduce-the-risk-of-fraud-in-b2b-payments.html "How can you reduce the risk of fraud in B2B payments?") friction,” commented Galdikas. “As Open [Banking enables third-party providers and fintechs](https://www.financedigest.com/attacking-banking-and-fintech-fraud-head-on-through-ai-infused-strategies.html "Attacking Banking and Fintech Fraud Head-On Through AI-Infused Strategies ") take on the roles of IoP providers, this opens up an entirely new area for innovation. Also, IoT [creates the opportunity for businesses](https://www.financedigest.com/how-to-create-financial-goals-for-your-business-in-2021.html "How To Create Financial Goals For Your Business In 2021") to gather more data about the consumers, which will help to elevate user experiences.” **BaaS continuing to thrive** Banking-as-a-Service (BaaS) allows embedding [financial services](https://www.financedigest.com/wrapping-financial-services-in-a-security-blanket.html "Wrapping Financial Services in a Security Blanket") into any company. This gave rise to a number of new market players, which took advantage of the Application Programming Interface (API) driven [platforms to enter the financial](https://www.financedigest.com/make-way-for-the-rise-of-the-finance-super-apps-consolidation-of-financial-digitisation-tools-platforms.html "Make way for the rise of the Finance Super Apps – Consolidation of Financial Digitisation Tools & Platforms") services industry. The BaaS market, [valued](https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATUTs0evtg85g9DtXCG3Ec1Zil3Ll6SlWhXHOfEbokAhqTa-2FhJffAZpiefg3nhzKzL8FfP2g6nAsci-2BGNAhZDsUNBL-2BQomMmGsa4G98E8-2FdMuEmkY3_tYU6GgO29C0hJO-2BuOcp5sHJKGLM7ySMgb5eKv-2FFPzeEa0op3hrDN-2B5MUx9dgtS18NU2redmx-2BBX74BVuEf4vXpg0rDN5kB97O1SOfD1E4EwTzrhq3Qd2DpltXnCX3Sf-2BQ-2BEtgN02HXrwbDMCGCesehg84GWSudd9qfT9Agg3TM-2BsrdBhzJTSbqYAVskLlnYAXmYqRm1SlWqcWwoYokSeUP93vfMx5OZym2hqzrfw2PpFlYcpHV7AKFocpGzTFWiSO61F0bRhvnSxU1V5kmC-2FHjCkTOflAL5NG8Kak2PjvZcwIs95W-2B-2FL1D8YWtZyZ4e6akNrGbqaiawkCmG77k1FomysVpkXyuWAcn8GJMlHwKw-3D) at $356.26 Billion in 2020, is now projected to reach$2,299.26 billion by 2028. “BaaS enables companies to leverage market-tested infrastructure without the regulatory overhang, [saving a significant](https://www.financedigest.com/significant-savings-stratford-apartment-one-week.html "Significant savings on Stratford apartment for one week only") amount of organization’s resources. As the pandemic led many to redistribute their budget, outsourcing [banking infrastructure became an even more appealing choice—leveraging banking-as-a-service enables them to direct more resources towards product innovation](https://www.financedigest.com/tomorrows-finance-the-latest-innovations-in-open-banking.html "Tomorrow’s Finance: The Latest Innovations in Open Banking"), rather than framework building. Therefore, BaaS providers will continue to fly high,” Galdikas commented. **Hyper-personalization** The need for personalized [experiences followed consumers](https://www.financedigest.com/experiences-new-currency-capturing-hearts-wallets-consumers.html "Experiences are the new currency for capturing the hearts (and wallets) of consumers") to the online space. While process automation will [remain](https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATUenJRXLJtOcN44nDZAPmDS6t9H7I95WJJE18bqIlONg-2FdmTcRF-2Fr-2F9EpXCiqvE0x3Cs2vDusZecsk9BCrP8-2BmpqnhuH3-2FExbpgwi7D4kJtqu0r0J_tYU6GgO29C0hJO-2BuOcp5sHJKGLM7ySMgb5eKv-2FFPzeEa0op3hrDN-2B5MUx9dgtS18NU2redmx-2BBX74BVuEf4vXpg0rDN5kB97O1SOfD1E4EwTzrhq3Qd2DpltXnCX3Sf-2BQ-2BEtgN02HXrwbDMCGCesehg84GWSudd9qfT9Agg3TM-2BsrdBhzJTSbqYAVskLlnYAXmYqRm1SlWqcWwoYokSeUHa0v0uc5iCsoZSOhK3Rm8xQadXkN0x5qBmZ76YRVCu45BzX-2FgAiWziyoZfl7gOM1X4Wnre85J5BhGeWHMphBQPps5X5HrvxHh55D6K4uDc5SXLnYH7tpZNqoZR3dPvDg-2BKMHiBIFDh-2FB3WtBHRvFTI-3D) one of the top priorities for fintechs, the key will be finding the balance between providing efficient service and not losing ‘the human touch’. To secure future success, industry experts have [emphasized](https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATURvNMXwjA3k8szzCbrcBGTMapkQs82SP0bPU2F7sejQg-2FiCGvX4v6QE2999rmWVCafokn26wX148wNV-2B6ANslBkz8WVt6fRTQUWFJMFATth10wLjFAkTLNYuA-2BAR9k5x6A-3D-3D4SPF_tYU6GgO29C0hJO-2BuOcp5sHJKGLM7ySMgb5eKv-2FFPzeEa0op3hrDN-2B5MUx9dgtS18NU2redmx-2BBX74BVuEf4vXpg0rDN5kB97O1SOfD1E4EwTzrhq3Qd2DpltXnCX3Sf-2BQ-2BEtgN02HXrwbDMCGCesehg84GWSudd9qfT9Agg3TM-2BsrdBhzJTSbqYAVskLlnYAXmYqRm1SlWqcWwoYokSeUA0kRfKshysKAoVPqewQ3H2gyOW8eGzowruQGa2FqEEBsoK-2Bw0KnZZY9dZ89E3-2FoSZ3JCG-2Blx4jpEEV9QBJRcjfWb-2FFukE3oGsdjUiXZCzYIszd-2FB3VsdSttFJ7NfghjHrTNnQfZ3eZ7xo3lO8Dh1CY-3D) leveraging real-time consumer data to provide personally tailored insights and proactive advice. “With [practically every business](https://www.financedigest.com/6-practical-tips-for-starting-an-online-business.html "6 Practical Tips for Starting an Online Business") pouring investments into upgrading their tech framework, hyper-personalization becomes the main driver helping banking service providers differentiate from their competitors. That’s why refining their [approach to be primarily customer-centric](https://www.financedigest.com/putting-data-at-the-heart-of-a-customer-centric-approach.html "Putting data at the heart of a customer-centric approach") as well as proving it at scale will allow gaining a competitive edge,” the expert explained. **Lasting focus on CBDCs** Throughout the year, central [bank digital](https://www.financedigest.com/igtb-launch-digital-transaction-banking-available-as-saas.html "iGTB launch Digital Transaction Banking available as SaaS") currencies (CBDCs) have been gaining momentum, with countries all around the globe, such as Sweden, Norway, South Korea, China, and others pushing the rollout and testing their application in the real world. The interest in government-backed e-money is not wavering, rather the opposite, it spurred new ideas, such as launching multiple CBDC systems, that could potentially cut off [billions](https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATUUmO22wGixEZksL1I0FdoqzbzdNrRQC1XNp7UIVBNYMTI4-2BmMs0hXyi-2FWWUQxy2m8EvCPCv8-2FDe-2BbBoYuWZgpRQc29lrnSVa2Ti0i38qVh-2B-2Fy49YJhx552-2B-2B2NYaSG1olAIgwtVzAvH685pN2snp4B5NJCGtjNQbAv9E-2BEnhf9qhX1rJ_tYU6GgO29C0hJO-2BuOcp5sHJKGLM7ySMgb5eKv-2FFPzeEa0op3hrDN-2B5MUx9dgtS18NU2redmx-2BBX74BVuEf4vXpg0rDN5kB97O1SOfD1E4EwTzrhq3Qd2DpltXnCX3Sf-2BQ-2BEtgN02HXrwbDMCGCesehg84GWSudd9qfT9Agg3TM-2BsrdBhzJTSbqYAVskLlnYAXmYqRm1SlWqcWwoYokSeUPS7t-2FDo23ExHzZefNRc6WOszEFJruo7xwD8F6fuPyfuz2gg99apHaC-2FSDSC8HwJokBakg3ITEWskgWPaSuCoUSfAaIP-2FXYtjNvjIrxo3OsommEQFK0SQBWOx3ElcjQMIEt8d-2F8ElvS8DKwQiwJOLEw-3D) of transaction fees annually. “CBDCs could provide a range of benefits, for example, lowering the cost of cross-border transactions, increasing financial inclusivity, and enhancing [economic resilience of domestic payments](https://www.financedigest.com/combatting-economic-uncertainty-in-2023-with-the-payments-sector-2.html "Combatting economic uncertainty in 2023 with the payments sector") systems. This is a tool that, if implemented thoroughly, could outweigh the offerings of [payment service](https://www.financedigest.com/igtbs-payments-services-hub-faq.html "iGTB’s Payments Services Hub – FAQ") providers, which will have to immensely step up their game,” Galdikas noted. “As for the multiple CBDC network, the main question of ‘how long will it take?’ remains, as developing a united framework seems like a Herculean task, with each countries’ efforts moving at a different pace.” The payments [market is evolving as rapidly as ever](https://www.financedigest.com/why-markets-need-a-players-more-than-ever-before.html "Why markets need A-Players more than ever before"), despite some of the challenges it had to face throughout 2021. The upcoming [year is looking to bring](https://www.financedigest.com/ecb-engaged-in-bringing-down-inflation-to-2-in-two-to-three-years-from-now-villeroy.html "ECB engaged in bringing down inflation to 2% in two to three years from now – Villeroy") more efficiency, personalization, and tech synergy, fueling the sector’s growth even further. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---