January 26, 2023 | 5 min read

Marqeta in 2023: three big themes for the year ahead

Now that the dust has settled on the world’s New Year predictions, it’s time to share what Marqeta’s European Team has in store for 2023 as well as our thoughts on forthcoming payments innovation trends over the coming 12 months.

Three of our central themes this year are embedded finance, lending and digital payments – and it’s something the Europe team will be taking to the road across the Continent to talk about this spring. More on that here but first, the three themes…

A year of embedded finance innovation

A key driver of innovation in lending is the challenging economic climate. Hard-pressed consumers need more choice than ever, while many businesses face unprecedented cash flow pressures. As a result, we expect an increasing number of fintech and banking propositions looking to launch or evolve embedded finance products.

On that note, last autumn we spoke to Bain & Company’s Adam Davis, co-author of the definitive report Embedded Finance: What it Takes to Prosper in the New Value Chain. In this blog, Adam explains some of the key use cases and shares his thoughts on future growth of embedded finance. It looks like there will be a whole host of opportunities for fintech businesses including KYC providers, underwriters and payments processing specialists in 2023 and beyond.

Marqeta will be talking in greater detail about this at Fintech Talents’ Powering the Future of Lending event, which takes place on March 29 in London. Our Director of Solutions Engineering Nick Holt will be participating in a panel session titled Embedded Lending 101 to discuss how modern lenders are meeting borrowers’ needs.

Additionally, Marqeta International MD Jeff Parker will be in Paris on April 17 as part of Fintech Talents Road Trip and will set out the crucial role of embedded finance in marketplace and merchant aggregator platforms.

A renewed focus on Lending 3.0

On the topic of lending, digital propositions will aim to deliver innovations to speed up loan application processes and drive alternative revenue streams, such as from interchange fees. Lending 3.0 will be central to this, as lenders realise the potential of enhancing their propositions with payments capabilities, giving customers more control.

Separately, it’s likely that more major High Street retail brands will embrace buy now, pay later, following news that some are even investing in providers.

This is because digital and bricks and mortar merchants have recognised that buy now, pay later type products can support people’s purchasing aspirations, whether for bigger ticket items such as furniture and white goods, or the latest fashion accessories.

Marqeta will focus on buy now, pay later on April 19 in Stockholm for the second leg of the Fintech Talents Road Trip. We’ll be talking about how innovators are working to minimise risks around fraud and prepare for greater regulation of the market.

Digital payments adoption accelerates

Increasing numbers of consumers and businesses will continue to opt for digital payments over physical debit and credit cards, preferring mobile apps, PayPal or other digital wallets. Indeed, research by Mastercard recently revealed that a fifth of UK consumers will ditch physical wallets in the next five years.

One reason given for continued use of physical wallets was for storage of loyalty cards and ID. We think this will change as more businesses discover the capabilities of digital cards and wallets that enable loyalty and rewards functionality in real time, alongside payments.

This will be a key theme when Marqeta travels to Berlin on April 21 for the final leg of Fintech Talents Road Trip. At the event, our International MD Jeff Parker will explain how Marqeta is enabling fintech innovators to “elevate the digital payments experience” in an era of fierce competition for supremacy across eCommerce and contactless payments.

Gearing up for a busy year

Part driven by innovation, part by necessity, we can be certain that the three themes of embedded finance, Lending 3.0 and digital payments will shape the financial lives of consumers and businesses in 2023.

That’s why the team at Marqeta Europe can’t wait to get out and about this spring.

We’re looking forward to sharing insights and ideas on the above critical payments functions with fellow members of the financial ecosystem.

And if you’re heading to Fintech Talents events, let us know here. If not, watch out for more payments content from Marqeta on LinkedIn here, and our blog here.

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