Billing 2024 as a ‘year of inflection’, the firm says the bigger downturn expected in 2023 failed to fully materialise as consumer spend mostly held up on a combination of wage inflation, increased credit or BNPL usage and a resilient travel sector.
„However, with most of those drivers starting to slow with signs of economic slowdown in Europe, we see limited upside from market dynamics next year,” the broker note states.
As 2023 fared better than expected, Jefferies analysts say they are even more cautious on 2024, with some caveats: „Given equity markets are 6-8 months ahead, we believe macro concerns are mostly priced in with focus being on 2025 acceleration as macro improves (e.g. lower rates) along with easier comparatives.”
Jefferies is expecting market growth of 5-6% for European payment fintechs next year, with a renewed focus on M&A and IPOs by mid-year as the outlook for 2025 becomes clearer.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below: