Photo Credits: pixabay.com
The Covid-19 pandemic turned everything upside down, but one arena that catapulted towards the center stage is the digital payment system technology industry. The virus itself had promoted the adoption of technological models that could provide alternatives to the use of physical money and it is no surprise that digital payment technology is not a distant reality any longer. In other words, the “futuristic” payment methods that many had been marketing for years have now slowly started to become the norm of the world we live in.
With digital payments gaining momentum, there is no surprise that people have become eager to become more aware of the mechanisms and technology trends that concern this industry. Now people want to learn more and become aware of the countless possibilities this new opportunity could open them up to.
There was a surge in the need for payment options that utilized digital media last year only. Mobile and contactless payments became the heroes during a time when social distancing was at the forefront.
The adoption of new payment methods meant that people and businesses would now have access to the wide digital economy at the offer. However, this is only the beginning of the process of reinventing the entire transaction experience.
Digital Payment System Technology
If you’ve ever used a debit or credit card to make a purchase, you’ve experienced a digital payment system. In the simplest of terms, digital payment refers to any form of payment that does not include the physical handling/transaction of cash.
What do the future trends of digital payments look like?
Facial recognition, fingerprint scanners, or iris recognition are all methods of biometrically verifying data. We use these daily to record our attendance at our workplace or do something as simple as unlocking our phones.
Over time there has been a steady increase in acts of identity theft and fraud; a plague that many innocent consumers have fallen prey to. With the introduction of biometric authentication into payment methods, there is an automatic increase in the reliability and security of all payments.
Incorporating this as a payment method inculcates the ideals of accuracy, efficiency, and security under one roof. Not only this, but it also helps to build an even more personal buying journey for the consumer who now knows that their transactions are their own personalized transactions to the degree that they’re matched with their biological characteristics.
4 Digital Payment Trends for 2021
Forget Cards, Get Codes!
All bank accounts come with a randomized combination of unique digits that are present on the customer’s cards. However, over time the technological growth has shown the capability of introducing customers with an even more secure, computerized mechanism for payment.
This technology use codes that are different every single time a transaction takes place. This on its own is a massive breakthrough because it helps to secure transactions to an extent like never before. These are temporary codes that expire within a certain time limit and then disappear in thin air!
Mobile Point Of Sale- mPOS
The mPOS is a revolutionary technology since it gives merchants the freedom to conduct their transactions from anywhere in the world. Gone are the days when they would need a physical presence at their businesses to conduct transactions. Now they can take their business anywhere and accept payments from customers.
Not only is this easier for the sellers but also creates a rather seamless experience for the consumer. Since it makes the payment process even more streamlined and flexible by replacing traditional central checkout systems with a sales staff that has access to mPOS devices.
Don’t Give It, Say It
In today’s world, we all prefer talking to our devices rather than actually having to use them. Whether it’s using voice command to set up an alarm or play our favorite song, the idea is to not have to really do much to get something done.
Well, now we’re at a point where we can also “speak out” our transactions. With smart speakers gaining popularity over the years, there has also been an increase in the number of people opting to use these speakers to record/finalize their transactions/payments.
Not so bad, is it?
All you really need for this is a phone and a camera with a wallet application installed on it. Once you have it. All it takes is a quick view of the QR code from your phone, and your payment’s gone through. It’s that easy!
This flexible payment mechanism has been gaining momentum fast with many consumers opting to use it simply because of the ease of access that it offers to them.
Use digital wallets such as Apple Pay or Google Pay to make your transactions without actually having to go through the hassle of searching through your physical wallets for the right amount of money.
The previous trend touched upon digital wallet applications. Now we’re going to look at it in a little bit more detail.
Traditionally we would keep all of our cash stuffed up in wallets that would prove to be quite tough to sift through to find the money notes that you’re looking for.
With digital wallets available on your phone, all of your money is quite literally a click away. Not only do customers not have to worry about handling so much cash on their own. But, they also have the ease of taking their money with them anywhere without actually carrying the money with them.
Probably one of the most talked-about payment technology trends currently is blockchain and cryptocurrencies. Major banks across the world have adopted the technology to enable their customers to partake in cross-border payments without the hassle that they might have faced earlier when using traditional banking methods.
Not only are banks adopting this technology but also actively involved in the creation of independent blockchains to help streamline the money transfer process and enable ease of access and use.
Blockchain Is Undoubtedly The Future Of Global Remittance
Encryption Is Key
We spoke about the introduction of unique codes and the discussion on encryption and tokenization stems from that only. Nowadays, each transaction goes via a different code online. So, any form of theft of the particular code is useless for carrying out another.
So if let’s say in the past if your transaction was hacked, there was a high probability that the hacker could also latch onto future payments or any other transactions that you might have made simultaneously.
If that happens now, the hackers will be unable to access any other transactions or any of our history because the transaction codes are all different. Moreover, there is also a greater likelihood of your lost transactions being recovered or tracked because each has a unique code assigned to it.
Open APIs, Better Collaboration
Digital payment system technology inclusion has become a mission for anyone and everyone involved in fintech and mobile payments. The market has showcased a need for the development of open APIs for third-party partnerships. To ensure a more complete customer experience for users.
With these stakeholders now all involved and working on the same level. There will be better creation, integration, consumption, and management of the development cycles for all involved.
These digital technology trends are only some of the few advancements that are available in the past few years. Moreover, they’ve shown the potential for growth and creativity. With time there is no saying how much this technology might scale and what other benefits it may bring along with it.
What is for sure is that the future is certainly digital. Additionally, our traditional way of life is slowly transitioning into one that fits the technological growth that we’re seeing all around us.