When it comes to the query, how technology has 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 regarding 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.
The technologies and the way of making transactions have changed radically in the 21st century. Most of the transactions are done through the internet or by cards. Mobile e-wallets have also gained ground when it comes to making instant and secure payments.
It time that we take a gander at the tech used in the payments industry and understand them briefly.
Let’s Understand The Examples Of Mode Of Payment Using Technology!
While making payments, we now have multiple options. Thanks to the internet, e-wallets, etc. that making payments is now easier, swift, and secure.
Let’s now try and understand how has technology changed the way we pay. When it comes to making payments, then we have the following options.
#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. There are two options to proceed then:
- Instant – Charges a fee
- Normal – No fee charged
#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 e-wallets 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.
Also read: Top digital wallet trends
#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.
#5 – Cash on Delivery
The most basic and traditional way of paying money is through CoD. Once you receive the product or service, you pay money by handing cash.
How Technology Has Changed eCommerce? Get To Know About It!
Shopping has changed a lot since the introduction of eCommerce websites. 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 provision. This is the result, that 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 makes them smarter and more responsive to your queries.
How Bitcoin Has Made It Possible For eCommerce Payments?
Cryptocurrency like Bitcoin has made the impact of technology on payment processes unconventional! After the introduction of cryptocurrency, eCommerce platforms want a dedicated cryptocurrency payment option. Although paying through this mode is unconventional and in nascent stages, you can still do it on eCommerce.
#1 – Does Amazon Accept Bitcoin?
Amazon is the leading eCommerce platform in the world. It offers a wide array of items for its customers. Therefore, there is huge traffic on its website. While making payments, most people prefer internet/online payment. In the age of Coronavirus, people have stopped paying with cash. Instead, they prefer online modes of payments.
One of the modes is Bitcoin. You can pay through Bitcoin using crypto-linked gift cards. You can buy the gift cards first and which in turn you can use to pay for your purchases.
#2 – Does Shopify Accept Bitcoin?
People have always wondered how technology is making transactions easier, the answer to which is simple. It’s through a variety of e-payment options that it has become convenient for everyone to make a transaction.
Shopify is one of the most reputed eCommerce service providers that offer to make an eCommerce website for entrepreneurs. If you’re looking to bring your products online, then Shopify can provide you with the platform and assistance. You can also have various payment modes including cryptocurrency like Bitcoin. You can do that using plugins.
#3 – Integration of Bitcoin on your Site!
Most of the purchases these days happen online. Therefore, if you’re wondering to set up an eCommerce website, then you need to have multiple payment modes.
People these days are into Bitcoin and therefore if you have a payment mode for it, it’ll be awesome!
Also read: How to develop Bitcoin wallet app
Factors That Have Led To Increased Technological Developments In Money Handling!
Paying through online modes has come a long way from its inception. It’s the technological advancement, which has propelled faster and much secure money transactions.
The bar graph above represents the rise of e-commerce sales in trillions! Part of the success goes to the advancement of money transfer technology in eCommerce platforms. Factors that have led to the increase in tech development that allowed ease in money handling are listed below.
They Eliminate Geographical Boundaries
The need for having online payments led to the sophistication in money transfer tech. Today we can transfer money in an instant without geographical limitation using Paypal. With the advancement of tech, the developers have also kept in mind the security issues. Transferring money securely and in an instant are some of the challenges that have been overcome by tech experts.
#1 – They’ve never been more Convenient
A need for the transfer of money to happen quickly and securely was felt while shopping in an eCommerce platform. This gave rise to payment modes such as e-wallets and internet banking. With the help of technology, the transactions got easier and convenient for the customers.
#2 – They give Consumers more Time
Being in an eCommerce platform can be distracting and sometimes that distraction can be good. You can get other products to check out once you’ve paid online for the product that you’ve ordered. This will take the burden off your shoulders to arrange cash for the delivery agent. Therefore, you can spend more time checking out something else.
#3 – They provide Cost-free Benefits
There are plenty of advantages of using the digital payment mode. The basic one being you can always transfer money instantly and securely. However, you can also get additional benefits like discounts, gift cards, or reward points by using digital payment.
How Technology Has Transformed The Payment Industry–Digital Payment Trends 2021!
Making payments online has become normal with more and more people opting for digital payments. The 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.
Digital payments 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 payment industry.
#1 – Increased Demand for Frictionless Payments
Most people love doing online payments because of the convenience it offers. Therefore, there’s always a challenge before the payment companies to keep the transaction frictionless. This challenge needs to be addressed as the customers want fast and no glitch payment because of their hard-earned money. Therefore, they choose mobile payments, digital wallets, etc.
#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. 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 invest 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.
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Take A Gander At Growth Opportunities 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. Tech 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 future of fintech will evolve. Therefore, investing in a business that accepts online payment and has multiple options will be a prudent decision.
What’s The Need For Planning A Digital Payment Strategy?
With the estimation of USD 200bn growth in the online payment industry, a comprehensive strategy is a must. There has been a steady rise in digital payments. We’ve seen the technology involving e payments become better.
Let’s look at why exactly a plan is needed in the coming years 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. This has led to convenience for both, the sender and receiver. It’s one of the major reasons why a digital payment strategy is needed.
#2 – Lower Risk
In the age of COVID-19, making contactless payments is a wise choice. 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. This solidifies the need to have a strategy to cater to digital payments.
#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. Digital payment ensures that you save time and money literally as it doesn’t charge processing fees.
#4 – More options means Faster Payment
In the beginning, 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. This has changed the entire dynamics of digital payments.
In a nutshell, technology and digital payment have come a long way since the inception of the latter. The sophistication in fintech has led to faster and secure transmission of payments. This is has led to people opting and adapting to digital payments and reducing dependencies on traditional payments. The blog above has addressed the query, how technology has transformed the payment industry. It has explained all facets of it in a descriptive manner and is a must-read.
Co-Founder and AVP Technology at Appventurez Mobitech. A tech enthusiast who has broad expertise in delivering end to end software solutions. He is an expert technocrat ho has in-depth knowledge and is highly experienced in delivering solutions for Android, Xamarin, Ethereum Smart Contracts, ASP.net.
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