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How Technology Has Transformed The Payments Industry?

By Anand Prakash | May 21, 2021
how technology has transformed the payments industry 1

When it comes to the query, how have digital payment technologies transformed the payments industry? Then transformation has had a tectonic shift! The technology used while making payments is secure and quite complex. However, we will understand all the technologies and trends in the payment industry to unlock the full potential of business growth. Also, the role of a mobile app development company in furthering the growth of online payments can’t be ignored.

Over the previous few decades, payment experiences have evolved dramatically. Improved technology, consumer convenience, security precautions, and legislation have all contributed to a shift in how we pay for products and services.

The payment business has seen it all, from cash payments to check payments to plastic cards like debit/credit card payments. A one swipe approach worked perfectly! It’s fascinating to learn how technology has influenced payments and led to the current stage of digital payment technologies.

Table Of Contents

1. Let’s Look at Some Methods Of Digital Payment Technologies!

2. How Technology Has Changed eCommerce? Get To Know About It!

3. How Technology Has Transformed The Payment Industry–Digital Payment Trends 2022!

4. Explore the Future Growth of Payment Companies!

5. Importance of Developing a Digital Payment Strategy

6. Explore The Future of Digital Payments

7. How Appventurez Will Help You In the Payment Industry?

8. FAQs

 

It is time that we take a gander at the tech used in the payments industry and understand them briefly.

Let’s Look at Some Methods Of Digital Payment Technologies!

While making payments, how technology is making transactions easier with multiple options. Thanks to the internet, e-wallets, etc. that making payments is now easier, swift, and secure. 

Let’s now try and understand that the most popular digital payment methods have changed the way we pay. When it comes to making payments, then we have the following options.

multiple-payment-methods-on-ecommerce-platforms

1 – Debit/Credit Card

One of the quick ways to pay is by using a card. Be it credit or debit card, this mode of payment is secure and fast. All you gotta do is to swipe the card in the POS machine and enter the security PIN. Once you’ve done that, money will be deducted from your account.

2 – Bank Transfers

To pay someone by this method, both the receiver and sender must have a bank account. The sender can wire the required amount by logging into his account and then entering the recipient’s details. 

3 – E-Wallets/ Mobile Payments

Since people carry mobile everywhere, they tend to not carry wallets. This is due to the provision of e-wallets such as Cash App, etc. These digital wallet trends are linked to your bank accounts and you can make the transactions easily by entering the mobile number of the recipient if he’s using the same app.

4 – Paypal

It’s a provision to make online payments internationally. If the sender and recipient are in different countries, then they can use Paypal as an intermediary. Although the service to send money internationally isn’t free. You’ll have to check the fee charged according to the country where you need to send money.

How Technology Has Changed eCommerce? Get To Know About It!

Shopping has changed a lot since the introduction of the best eCommerce API. Now you can sit at home and get the items delivered without venturing out. The same goes for payments. In the earlier days of eCommerce, there were limited options to pay. However, the impact of technology on eCommerce has resulted in making multiple options available. Not only that, but the UX has changed drastically for good!

Let’s take a quick look at how tech has evolved eCommerce.

1 – Multiple Support Mechanisms

Shopping online can sometimes be a tedious task and you might have some queries. These queries can make your user experience unpleasant on the site. Therefore, support and maintenance are provided through multiple channels. Be it video chat or screen sharing, the main purpose is to make your experience great using user-friendly support and maintenance tools!

2 – Personalized Shopping Experience

Shopping from an eCommerce platform can be overwhelming because of tons of products. However, Google analytics and various other filters can narrow down your shopping choices. Therefore, to have an amazing experience you can funnel down your favorites and personalize.

3 – Switch to Mobile Shopping

Most internet users access eCommerce platforms through their mobile phones. With the introduction of dedicated eCommerce apps, shopping has become user-friendly. The apps have provided the customers with great UI/UX design. This is the result of many people have switched to mobile apps while shopping online.

4 – AI & Chatbots Embedded in eCommerce

The role of chatbots in enterprises just makes the online shopping experience enjoyable! You can easily get the problem resolved using Chatbot which is readily available. Any question can be answered by it and therefore it acts as a first interaction if you need someone’s assistance. AI technology embedded with Chatbots development makes them smarter and more responsive to your queries.

How Technology Has Transformed The Payment Industry?

Making payments online has become normal with more and more people opting for digital payments. The future of payment technology has greatly improved the whole experience of making payments instantly. This has resulted in the impetus for moving towards a cashless society that’ll be environment-friendly. 

Innovations in payment technology systems have made a radical change in the way we make transactions. Therefore, let’s take a look at some latest trends shaping the future of the payment industry.

ecommerce platform used by ecommerce websites

1 – Increased Demand for Frictionless Payments

Most people love doing online payments because of the convenience it offers. Therefore, there’s always a challenge for the payment companies to keep the transaction frictionless. This challenge needs to be addressed as the customers want fast and no glitch payments because of their hard-earned money. Therefore, they choose mobile payments, digital wallets, etc.

innovations in payment technologies

2– Worldwide Adoption of Real-time Payments

Paying money online has become a pleasure with the introduction of payment gateways. These gateways have eased the process of transferring money from Point A to Point B. However, there was a ‘geographical’ challenge earlier when it came to paying money online internationally with the latest payment technology. It’s been addressed by Paypal, Cash App, etc. They continue to make the transactions faster and safe. 

3– AI & Machine Learning Gain Momentum

Fintech company’s investment in AI application development has reduced fraud. AI has been a vital technology in identifying online frauds. It’s due to the technology that frauds are detected in time and the chances of the money being difficult to trace are reduced significantly.

4– COVID-19 Accelerated Digital Payment Usage

Due to the pandemic, most of the transactions have been cashless. The fear of catching the disease is for real and is one of the reasons for the rise in online payments. So having payments done online is becoming a trend and it’s here to stay.

5- Omni Channel payment processing

Many merchants manage multiple retail channels and formats, which means that basing payment processing on omnichannel will unlock significant efficiencies, such as improving customer loyalty and satisfaction, enabling increased sales efficiency, and mitigating fraud. Providing a unified customer experience across multiple channels and geographies is the optimal way to offer payment processing in the future

6- Adoption of blockchain

Cryptocurrency and blockchain technology in development is poised to become a fundamental vehicle of value exchange, despite their tumultuous and unconventional reputations. The blockchain technology used in digital payment market trends adopted by the financial industry and implemented in specific use cases.

Explore the Future Growth for Payment Companies!

There are times you wonder how technology has transformed the payment industry and what’s the road ahead. The answer to this can seem to be quite complex, however, we have tried to explain it to you point-wise. The relevance of digital payments is growing exponentially and with that the growth opportunity for the industry as well.

So let’s take a quick look at some informative content provided concisely for better understanding.

1 – Developing Solutions for Untapped Segments

In the ASEAN countries, about 60% of the population lives in rural areas. They’re untapped potential when it comes to online payments. The scope for digital payments is huge. As per an estimation, the digital payment industry will grow to USD 200bn!   

The description of the graph with the details provided above shows the potential of digital payments.

2 – Mobile Remittance & Cross Border Payment

According to a UN report, the number of migrant workers has increased over the years. For them to send remittances is crucial because they have families to support back home. Therefore, easy and fast payment of money is a must. It’s the reason for the growth of digital payment industries, as they provide them with the service. 

3 – Virtual Credit/Debit Card Payment Solutions

An opportunity for e-wallets that are equipped with virtual/debit cards has started incorporating tech for fast payments. Techs like QR(Quick response) and biometrics have changed the way you pay digitally and have become more convenient. These payment methods will continue to grow in the near future.

With the content mentioned above, the technologies affecting the future of fintech will evolve. Therefore, investing in a business that accepts online payment and has multiple options will be a prudent decision.

Importance of Developing a Digital Payment Strategy

With the online payment sector expected to increase by USD 200 billion, a comprehensive approach is required. Digital payments have been steadily increasing. We have seen advancements in e-payment technologies.

Let’s look at why exactly a plan is needed in the coming year for digital payments.

1 – Convenience & Accessibility

With the introduction of various modes of online payments, transactions have become enjoyable. Even a small businessman with a modest setup now prefers digital payment over cash as it’s safe and contactless

2 – Lower Risk

The transmission of viruses can make things worse and there’s no guarantee that you can’t catch viruses from currency. Due to such a critical situation, digital payments have been a blessing in disguise

3– Save Costs, Time & Processing Fees

When it comes to making payments through digital means, then there are a ton of benefits. It saves you cost as you don’t need to go to the ATM to take out cash. There’s a saying, time is money and if you save time you can mint more money.

4 – More options mean Faster Payment

Online payments on eCommerce websites used to have limited options like internet banking. However, with the growth in needs and technology becoming more mature you now have multiple options. You can use mobile payments, e-wallets, etc. to make a transaction instantly.

The Future of Digital Payments? It’s right now

The future of the payment industry will revolutionize not just the customer experience and payment methods, but also financial services in general. The sector has experienced a significant infusion of non-bank extra players, including both tech startups and technology behemoths, posing increasing competition for banks.

Indeed, fintech entrepreneurs are reshaping the banking sector by capitalizing on trends such as the dominance of smartphones and mobile platforms, as well as fast-changing client expectations. Future payment technologies organizations will need to adapt to these developments with new skills, products, and operating models in order to keep their client connections relevant.

future of digital payments graph

How Appventurez Will Help You In the Payment Industry?

In today’s fast-moving, always connected and always-on society, companies are forced to seriously consider implementing a trending digital transformation strategy, if they haven’t already. Digital transformation offers organizations an opportunity to engage modern buyers, and deliver on their expectations of a seamless customer experience regardless of channel or place.

Payment tech has become faster, more secure, and more fun. Appventurez finance app development company is already seeing developments in the industry around Android as a payment platform and cloud-based services which will play a big role in the evolution of payments and how customers make purchases.

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FAQs

1- What is the impact of technology on payment processes?

Contactless payments improved the payment process by adding speed, security, and convenience. Contactless cards have been widely used in Europe and Canada, among other areas, allowing users to pay by just tapping their cards on payment acceptance machines.

2- How digital payments can benefit entrepreneurs?

Digital payments may boost an entrepreneur’s profitability by making financial transactions with consumers, suppliers, and the government easier, safer, and less expensive. Wage payment via digital means helps employees while also being safer and more cost-effective for companies.

3- What are the modern methods of payment?

When compared to conventional payment methods, modern payment systems employ cash replacements. Debit cards, credit cards, electronic money transfers, direct credits, direct debits, online banking, and e-commerce payment methods are all included.

Anand Prakash

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Inquiries : +91-9899 650980

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Inquiries : +1-424-903-8644

Office #216 Regus Tower Bank Street, Doha Qatar

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Inquiries : +1-424-903-8644

Rimal 5 Jumeirah Beach Residence 2 Dubai

Inquiries : +1-424-903-8644

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Inquiries : +27 737 810 945

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Inquiries : +1-424-903-8644

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Inquiries : +31-(0)-61-020-9692

Calle Ambar 2711, Av Victoria, 45089, Zapopan, Jalisco, Mexico

Inquiries : +521 332 393 9998

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