Future Payment Methods & Trends

Finances, currency, and the way we make expenditures have undergone several changes. It clearly reflects on the progress humans have achieved. The changes indicated our way of living and adaptation to the changes. Similarly, the current payment methods boast our technological achievements of today.

Digitization of payments was a huge jump towards the goal to achieve a relaxed, suitable, quick, and safe payment method. Perhaps, we have achieved all of it. Digital payment methods saw massive developments in the span of six years and we are about to see even more in the future.

It will be exciting to see the future trends and what’s in store for 2021.

Biometric verification

Biometric authentication is a new trend that is rapidly developing. Biometric authentication is a confirmation method that involves the biotic and physical features of a person. These approaches include finger scans, face recognition, iris recognition, heartbeat examination, and vein mapping.

With the rise in theft and fraud, biometric authentication will be begun failing and safe option for all digital payments in the future. As per stats, an approx. of2-2.5 million cards will be issued in 2021.

Biometric authentication is an exclusive and significant payment method as it includes and provides truth, competence, and safety under a single package. Biometric authentication is a highly secured method since it involves a person’s exclusive features. This will increase the safety and loyalty of the customers

From cards to encryptions

Previously, bank accounts were known by random mixtures of codes or numbers present on cards. However, the EMV technology has progressively increased and presented clients with more hi-tech and protected devices for payment.

The EMV technology is known for using codes that vary every time a transaction takes place. This use of temporary codes enhances the security in the bank accounts by leaps and bounds. This shows us how encryptions can shape the future of banking systems.

Moreover, the future of debit cards is bound to be surpassed by leading-edge transaction services that offer more suitable and all-in-one ways of money transfers and stores.

GrowingMandate for Mobile Point of Sale

Mobile-point-of-sale (mPOS) is innovative technology as it releases all the merchants from their brick-and-mortar locations and in-store payments. It frees them to go to various places like concerts, trade shows, food trucks, and many others where they can seamlessly accept payments from their customers.

In fact, the mPOS technology also makes a vast change in the transaction process of a store by making it more efficient and flexible by swapping the vital checkout parts with sales staff armed with mPOS devices.

mPOS is confidently going to be trending digital payment technology.

Smart speakers

Home-based smart speakers allow their users to give voice orders to a speaker and receive a voice response in return. The user can give voice commands for various things.

These speakers were restricted to just phone devices, however with the growth of home automation, these speakers also started to go conventional.

According to a report, 30-35% use smart speakers for buying products, and around 20-30% are used for sending money or making direct payments. This is a small portion as many people don’t opt for this payment method due to security reasons.

Even though the percentage of users for such payment method is lesser, but in the future, it is expected to be a growing tool for many transactions.

Top-rated security powered by AI and Mechanism Learning

Safety is the most vital component whenever it comes to payment. People want to use a payment method that is with high security. Hence payment technologies won’t be able to go forward without evolving high-grade security.

Banks get multiple transactions every day and in order to monitor any kind of fraud, they need to opt for mechanism learnings. Mechanism learning is the first step you need to complete to achieve AI. Banks incessantly feed their software with different and new dealings. The software takes a set of limited dealings and learns to detect scam transactions in real-time. As the software receives more and more transactions, it keeps getting better at identifying scam transactions.

Contactless Transactions

Contactless transactions are another method that is growing in 2021. As the name suggests, the contactless transaction allows the customers to simply wave their smartphone across the reader. This method of waving quick and more convenient.

Contactless transactions fast and more secure because it transfers the coded data to the point-of-sale device promptly.

Contactless transactions are possible with NFC technology. That’s the reason why they are also termed NFC payments.

Supremacy of m-wallets

Around 2.1-2.5 billion people are using mobile wallets. And this number is bound to increase in 2021. An m-wallet solution is a wallet that impersonator an actual physical wallet. With the help of an m-wallet, you can send& receive money inside the wallet. Not only that, with the help of an m-wallet you can clear your bills and do many more activities.

Today the transaction on m-wallets have at 274.4 billion (approx.).

M-wallet consists of various mechanisms that are making easy, quick, and cashless payment services.

Conclusion

Digital payments are the future. In the coming years, we will see payment methods transitioning from cash to cashless methods. Before this transition ends, many trends will appear and disappear. All this will play a vital role in shaping the future of payment gateways and payment methods. Many of the trends will evolve in the future and only time will show how the changes impact the future of payment methods.

Read More: How the Travel Industry has Impacted Due to The COVID19?

About the Author: The author, Ravi Gupta is the Founder & CEO of SafexPay having more than a decade of experience in the digital payments industry. SafexPay is the industry leader in white-label payment gateway solutions