The Year in Data: PYMNTS Intelligence Decodes 2024’s Biggest Trends
It’s no secret that 2024 was a year of important developments in the financial services industry, and PYMNTS Intelligence was at the forefront of tracking and analyzing key trends. Our research provided insights into the evolution of payments, consumer behavior and business strategies.
Here are five trends that PYMNTS Intelligence defined during the past year, with links in case you didn’t have a chance to download them on the first go-round.
Embedded Finance: Turning Eyeballs Into Revenue
Embedded finance emerged as a game-changer in 2024, particularly in the software publishing sector. Our research revealed that payment facilitators, independent software vendors, and marketplaces were rapidly adopting tools like buy now, pay later and merchant lending. The integration of these features proved crucial for unlocking new growth opportunities, with many firms planning to enhance their embedded finance capabilities over the next two to five years.
Digital Wallets: The New Frontier of Payments
Digital wallets continued their rise in 2024, with PYMNTS Intelligence projecting they would surpass debit cards in transaction value by 2027. Our research uncovered that 53% of Americans were using digital wallets, with expectations of them dominating nearly half of all point-of-sale transactions globally by the end of the decade. Notably, digital wallet users were found to spend 31% more than those using other payment methods, with this trend particularly pronounced among younger generations and high-income earners. However, merchant adoption remained a challenge, with only 57% of small businesses accepting digital wallet payments.
The Paycheck-to-Paycheck Reality
In 2024, PYMNTS Intelligence continued to track the financial health of American consumers, revealing a concerning trend in paycheck-to-paycheck living. As of May 2024, 21.2% of U.S. consumers reported living paycheck to paycheck with issues paying their bills. This group, comprising about 27 million Americans, drove 8% of consumer spending despite their financial struggles. Our research highlighted the impact of the current price/wage/inflation dynamic on these consumers, noting their vulnerability to economic shifts and employment insecurity.
Working Capital Efficiency Through Supplier Integration
The “2024-2025 Growth Corporates Working Capital Index” provided valuable insights into working capital efficiency, particularly focusing on supplier integration. The report found that top-performing companies integrated twice as many suppliers into their systems as lesser performers, resulting in a 34% boost in supplier payment integration. This integration led to improved cash flow predictability and working capital efficiency, with top performers achieving an average of $11 million in bottom-line benefits, partly from supplier discounts.
Buy Now, Pay Later: Driving Holiday Spending
As the holiday season approached, PYMNTS Intelligence uncovered the impact of buy now, pay later (BNPL) options on consumer spending. Our research showed that 68% of general-purpose credit card installment users decided to use these options before checkout, while 43% of holiday shoppers said the availability of BNPL options influenced where they shopped. The report “Maximizing Holiday Revenue: The Strategic Value of Early Pay Later Visibility” emphasized the importance of early visibility of BNPL options in driving consumer engagement and loyalty. This insight provided merchants with valuable strategies to boost consumer adoption and maximize holiday revenue.
Throughout 2024, PYMNTS Intelligence continued to deliver important research and analysis, helping businesses navigate the rapid evolution of financial services. From the rise of embedded finance and digital wallets to the persistent challenges of paycheck-to-paycheck living and the strategic importance of working capital efficiency, our reports provided the industry with invaluable insights to drive innovation and growth.
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