This year’s Merchant Payment Ecosystem (MPE) conference in Berlin was nothing short of exceptional! MPE really is the leading trade show in the merchant world, igniting conversations among fintech leaders about diverse themes in payments, technology and of course, commerce.

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 to see that the industry is navigating through a variety of positive developments emerging from grassroots levels. 

Now that the MPE dust has settled, here are some of the key takeaways of what’s to come in merchant payments in 2024 and beyond.  

The Digital Euro promise 

As a CBDCs enthusiast, it was particularly exciting to listen in on the prospects of the Digital Euro, and more specifically, on the European Central Bank's digital currency roadmap. 

The discussions focused on the retail applications of digital currencies, which, although important, represent just the tip of the iceberg. I believe that the most significant opportunity, the real game-changer, lies in B2B and wholesale applications, where the advantages of digital currencies become more pronounced. 

The blend of keynote speeches and panel debates was curated to allow for a deep dive into a variety of perspectives, bringing to light the pressing need for digital currencies peer-to-peer transactions. The idea of effortlessly sending digital currencies to a friend without the middleman could usher us into a new age of financial dealings, transcending the constraints we've known in traditional buyer-to-seller transactions.

The conversation continued among the attendees, addressing the practical benefits of digital currencies for merchants, which go beyond the hype and flashy technology surrounding them. This was great to exemplify the potential of digital currencies in our payment systems. It was like finding a missing puzzle piece that suddenly made everything click, highlighting the game-changing potential of digital payment innovations.

The growing adoption of Digital Wallets across Europe

The dialogue on Digital Wallets revealed a fascinating landscape of digital payment solutions across Europe, marked by diversity and innovation. In contrast to the dominance of Apple Pay and Google Pay in markets like the UK, countries such as Poland and the Nordics showcase a strong preference for local, bank-independent digital wallets. These regional wallets have carved out a significant presence, underpinned by deep trust and tailored features that resonate with local user preferences and needs.

The discussion underscored the challenges and opportunities in harmonising these diverse payment solutions into a cohesive pan-European framework. Efforts to create a unified digital wallet, face obstacles due to the entrenched position of local brands and the varied consumer behaviours across different countries. However, the evolution of these wallets into "smart wallets" introduces new functionalities, extending their utility beyond payments to offer a comprehensive digital financial toolset.

An era where payments turn smart

As expected, AI led the main stage talks. While there’s a general understanding that AI in payments (and financial services more broadly) isn’t new, investment in this technology has skyrocketed. It’s not just behind the scenes anymore; AI is front and centre, with new features and sparking fresh ideas being launched regularly. There were some meaningful talks about how AI is being used and what’s to come next.

After one of these sessions, I found myself in conversation with other attendees about the benefits and drawbacks of integrating AI into coding practices. It was interesting to see that while there's a palpable excitement about the potential of AI, many view coding as more of an artistic endeavour that AI might not fully master at present. More practical aspects of AI include its ability to predict the next line of code, in the same way our phones can guess our next words, but even here many might show resistance towards fully embracing AI in their creative processes. The consensus? While AI is nowhere near rooting out coders, the coming months and years will see that it becomes an invaluable assisting tool. 

Glimpsing into the future on the last day of the event, the discussion took a turn into AI's utility in marketing and product offerings, introducing AI-powered personalised payment options. A future where AI does the negotiation for you, figuring out the most convenient way to pay, making buying and selling not just easier but way more tailored to the consumer. It's like having a smart assistant that knows exactly what the consumer needs, talking directly to the store's assistant to score the best deals. This isn't just a small step; it's a giant leap towards making shopping and transactions smarter. 

As I look back on last week, it's evident that we are on the cusp of a transformative era for payments. The discussions held in Berlin this year have laid the path for an exciting future. Developments in digital currencies, the expansion and integration of digital wallets, and the innovative application of AI in financial services alone are set to change the game. But much more was explored on the main stages, among the attendees, or during networking events. As we reflect on the insights and innovations showcased at MPE 2024, the way ahead is not without challenges. Yet, the spirit of collaboration and the shared vision of a more connected, efficient, and inclusive payment ecosystem gives us ample reason to be optimistic.