What started with the barter system has now moved to something straight out of a sci-fi movie, Digital currency. And in between, the payment industry took several turns around card-based payments, NFC, and even biometric authentication.
This complete revolution from what the payment industry started as to what it is today is something that has still not reached full circle and is still evolving on a full innovation spectrum.
In this article, we are going to look at the future of the payment industry from the perspective of the trends that lie in front of it.
But before we move on to those trends that are soon going to hit the payment industry, let us look at how far the domain has come –
Now that we have looked into how far the payment industry has come, the timing is apt to get down to what all is there to come as the future of payments.
So, without further delay, let us get to it straight.
Payment Industry Trends for 2020 and Beyond
In-Store Mobile Payment
Mobile payments have in themselves created a great market in the payment industry. The time when payments were restricted to cash and card is now slowly passing. The demand for multiple payment modes is what has brought in an increase in not just mobile app development companies that specialize in mPayments but also the whole global mPayment market –
This rise in the revenue that the mPayment market is seeing is the doing of the glaring rise in the number of users who are now turning to the convenience and ease that the payment mode offers.
Now, talking specifically about the in-store mobile payments ecosystem, while the debit and credit card seem to continue being the king of the domain, the mobile payments which rely on the NFC technology, contactless payments, and mobile wallets are a payment trend that is in for a long time.
It is estimated that in-store mobile payment structure is going to be worth around $503 billions by the time we reach 2020, thus proving itself to be one of the major digital payment trends.
What will continue to propel the whole in-store payment situation and the future of payment methods is the need for convenient modes which are simple, fast, and secure to use.
Point Of Sale Systems
A device that is all set to redefine the payment structure is a point of sale devices. The mobile-based devices have made it possible for shops of all sizes to offer the ease of debit or credit card related payment with ease, making it the future of digital payments.
The time to come will only see greater adoption of mPOS experience at the back of the flexibility and ease that they offer in the checkout process. These devices give merchants a refreshing opportunity to come to a step ahead of their legacy systems and incorporate much greater customer loyalty and streamlining of the checkout experience.
This expected rise in the POS systems has brought in an equally bigger rise in the whole global share of the system’s future of payments methods.
It is estimated that by the time we hit 2021, there are going to be around 18 billion biometric payments happening on a year on year basis. This estimated figure too will rise with more and more devices incorporating the biometric technology in how the consumers’ passwords are authenticated.
With more and more frauds happening in the payment industry, a facility like biometric authentication will prove to be a complete game changer. Instead of depending on the debit and credit card payments which verify the identity through PIN or signature, biometric takes security to an entirely next level, thus securing its position as the future of online payments.
While contactless payments have already been in trend for some time now, the trend will find itself growing into the future of payments in 2020. From the many wearable payment devices to cards that enables customers to pay using a single tap at the terminal, the technology is now defining the payment technology’s future.
The fact that contactless payment has found a place in the US public transport, the transaction value is poised to rise in the market.
AI in Payments
Artificial Intelligence, specifically under its capacity as a powerful voice-based technology is setting a new record in the payment ecosystem, specifically in the commerce and retail space. AI in payments enables users to shop and then pay for the items without browsing through their devices. In fact, using artificial intelligence in the payments industry at its more advanced level will help merchants be a part of an evolved digital payment ecosystem which relies on the details which are stored in cloud and forms one of the biggest payment processing industry trends.
Bitcoins and the whole cryptocurrency domain in general needs no introduction. While low in adoption value for the past few years, the use cases of cryptocurrency in businesses are only going to increase as payment trends of 2020, especially with more and more retailers now seeing it as a legit payment mode.
In fact, it is not just payment which is going to see a huge uprise coming in from the Blockchain domain but the whole Finance industry.
With the finance world now getting interoperable, there is an ever-growing rise in the need for properly engineered and well tested APIs. While there are already a number of APIs functional in the industry enabling easy money transfer facilities along with the convenience of putting money in wallet straight out of the bank account, etc. The industry is all set to see more and more APIs now entering the payment space, making them one of the biggest trends impacting the future of payments technology.
This rise in APIs that the payment industry is now seeing is bringing in with it a whole new concept called Open Banking, thus bridging the gap between the traditional and modern banking system. A concept that would entirely alter the future of payment industry.
With the consumers now demanding similar experience from every platform they choose, their payment needs are also moving to multiple platforms. One of the PWC annual surveys revealed that 91% of consumers preferred to shop in the stores while 84% preferred shopping online. These choices when mixed well is leading to the inception of more and more payment devices and applications in the industry, thus bringing omnichannel in the list of the future payment technologies trends.
Here’s a graph from a PWC survey highlighting the omnichannel payment module.
These were the payment processing industry trends that are all set to redefine the payment technology in the very near future to come. Are you prepared?
Co-Founder & Managing Director of AppVenturez Mobitech. An entrepreneur who is tech-savvy and aims to build the largest software business through technological innovation, keen business strategist and a passionate technocrat. He firmly believes in learning and earning by planning and performing.
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