5 Trends That Will Disrupt the FinTech Market in 2024

Fintech Market Trends for 2024

Some global trends in fintech have been around for a while, and some are just gaining traction. To pinpoint the ones that will form the fintech landscape in 2024, we thoroughly researched numerous disruptive fintech trends. From a development perspective, it would be prudent to build fintech products in a way that allows for the rapid introduction of new features from the trends we’ve included in this list.

1. Virtual bank cards

Virtual bank cards are digital credit/debit cards that live in an e-wallet, not in a pocket. They’re offered by both neobanks (like Revolut, Monzo, Monobank, and N26) and traditional banking institutions like Bank of America or Capital One.

The main benefit of virtual cards is that customers can pay with them in-store via NFC or on any online platform without the risk of losing money to traditional credit/debit card fraud schemes. Every purchase from a virtual credit card is usually authorized through the customer’s banking app, so a compromised virtual card can be voided and replaced with a new one in just a couple of clicks.

Examples

Revolut, Monzo, N26, and other neobanks use virtual cards to let customers make P2P transactions, in-app purchases, and online payments before their physical card arrives. Some challenger banks also offer “disposable” virtual cards which change their details after every transaction, thus reducing the risk of fraudulent use.

2. Embedded finance

While the concept of embedded finance is nothing new, it might just be the next revolution in payments.

Non-financial entities are now offering traditional banking services through the Open Banking API. Tesla offering car insurance for each Tesla car purchased is just one example of the possibilities opening up for customer engagement.

Of all the fintech trends for 2024 on our list, this looks set to be among the most disruptive. It’s no surprise that revenues are expected to skyrocket by 2025.