This year’s Merchant Payment Ecosystem (MPE) conference in Berlin was truly exceptional! MPE is the merchant industry’s premier trade show that sparks conversations among fintech leaders on a variety of topics including payments, technology, commerce, and more.
With topics ranging from the transformative potential of AI in payments to the evolving landscape of European digital wallets and the promising future of the digital euro, it is clear that the industry is navigating a range of positive developments emerging from the grassroots level.
Now that the MPE issue has been resolved, here are the key things that will be included in merchant payments in 2024 and beyond:
The promise of a digital euro
As a CBDC enthusiast, it was particularly interesting to hear about the prospects for a Digital Euro, and more specifically the European Central Bank’s digital currency roadmap.
The discussion focused on retail applications of digital currencies, which, while important, are only the tip of the iceberg. I believe that the most significant opportunity and true game-changer lies in B2B and wholesale applications where the advantages of digital currencies are more prominent.
A mix of keynotes and panel discussions allowed for in-depth analysis of different perspectives and highlighted the urgent need for peer-to-peer trading of digital currencies. The idea of being able to easily send digital currency to a friend without a middleman could take us beyond the constraints we know from traditional buyer-seller transactions and usher in a new era of financial transactions.
Conversations among attendees covered the real benefits of digital currencies for merchants, beyond the hype and flashy technology surrounding them. This was a great example of the potential of digital currencies in our payment systems. It was like finding the missing puzzle piece that suddenly made everything click, highlighting the groundbreaking potential of digital payments innovation.
Digital wallet adoption is growing across Europe.
The conversation about digital wallets revealed an attractive landscape of digital payment solutions across Europe, characterized by diversity and innovation. In markets such as the UK, Apple Pay and Google Pay dominate, while countries such as Poland and Northern Europe tend to prefer local, bank-independent digital wallets. These local wallets have gained a significant presence based on deep trust and customizable features that cater to local user preferences and requirements.
The discussion highlighted the challenges and opportunities in harmonizing these diverse payment solutions into a cohesive pan-European framework. Efforts to create a unified digital wallet face challenges due to the entrenched presence of local brands and diverse consumer behavior in different countries. However, as these wallets evolve into “smart wallets,” new features are introduced, expanding their utility beyond payments, providing a comprehensive set of digital financial tools.
The era of smarter payments
As expected, AI dominated the main stage talks. Although it is generally understood that AI in payments (and financial services more broadly) is not new, investment in this technology has skyrocketed. It’s not just behind the scenes anymore. AI is front and center, with new features and sparking fresh ideas being released regularly. There were meaningful conversations about how AI is being used and what will happen next.
After one of these sessions, I chatted with other attendees about the pros and cons of incorporating AI into their coding efforts. While there is palpable excitement about the potential of AI, it’s interesting to see that many see coding as more of an artistic endeavor that AI may not currently be able to fully master. More practical aspects of AI include the ability to predict the next line of code, in the same way that a phone can guess the next word. But even here, many may show resistance to fully embracing AI in the creative process. agreement? While AI will do nothing to eradicate coders, it will be a valuable support tool in the months and years ahead.
Looking to the future on the final day of the event, the discussion turned to the usefulness of AI in marketing and product delivery, with the introduction of AI-powered personalized payment options. A future where AI negotiates for you, finds the most convenient payment method, and makes buying and selling not only easier but more personalized to the consumer. It’s like having a smart assistant that knows exactly what the consumer needs and speaks directly to the store assistant to get the best deal. This isn’t just a small step. This is a huge step towards making shopping and transactions smarter.
Looking back on the past week, it is clear that we are on the cusp of a transformative era in payments. The debates held in Berlin this year pave the way for an exciting future. The advancement of digital currencies, the expansion and integration of digital wallets, and the innovative application of AI in financial services alone will change the game. But much more was explored on the main stage, among attendees, or at networking events. Looking back at the insights and innovations showcased at MPE 2024, the road ahead is not without its challenges. But our collaborative spirit and shared vision for a more connected, efficient and inclusive payments ecosystem gives us plenty of reason to be optimistic.