Before we look at the top payment trends we must understand the history and facts of digital currency. 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 blog, 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 technology has transformed the payments industry, 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.
Check out the Top Payment Trends for 2020 & Beyond!
#1 – 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 payment 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 digital wallet trends are in for a long time.
It is estimated that the in-store mobile payment structure is going to be worth around $503 billion 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.
#2 – Point Of Sale Systems
A device that is all set to redefine the payment structure is a point of sale device. Mobile-based devices have made it possible for shops of all sizes to offer ease of debit or credit card-related payment with ease, making it the future of digital payments.
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 payment gateways methods.
POS is one of the popular options for companies in the payment domain.
Unconventional Types of Payment Channels
#1 – Biometric Authentication
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. It’s one of the emerging payment methods in 2021. This estimated figure too will rise with more and more devices incorporating 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.
#2 – NFC Payment
While contactless payments have already been in trend for some time now, the trend will find itself growing into the future of payment industry in 2020. From the many wearable payment devices to cards that enable 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 US public transport, the transaction value is poised to rise in the market.
What are the Methods of Online Payment that can be Popular in the future?
#1 – 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 fintech & 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. This answers the question of how Ml is improving the payment industry? This answers a general query, how is AI used in payments?
#2 – Crypto-Payments
Bitcoins and the whole cryptocurrency domain, in general, need 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.
So, it’s not just payment that is gonna witness a huge rise from the Blockchain for business domain but the whole Finance industry.
Also read: How to develop Bitcoin wallet app
#3 – APIs
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 a 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 the payment industry.
#4 – Omni-Channel Payment
With the consumers now demanding similar experiences 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 are 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 technology 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 payment technology in the very near future to come. Are you prepared?
The paragraph just above addresses the query, which trends altering the future of the payments industry? It also shows that how seamless and secure payments will shape the industry. The blog gives thorough information about real-world use cases for payment channels. Many of the payment options listed above can be used to quell concerns related to what are cross-border transactions?
The various types of payment methods have been given birth by the question, how is mobile commerce shaping the payment industry? To answer this question, we have seen the growth of various technologies. The top payment trends discussed in brief in the blog will give you an idea.
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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