The payments industry has been experiencing massive changes in recent years, and this trend is set to continue with more innovative solutions being introduced. With technological advancements and changing consumer preferences, payment trends are evolving rapidly, and businesses must stay one step ahead of the competition to remain competitive.
Here are the top innovative payment trends taking over the industry:
1. Contactless Payments
The adoption of contactless payments is another innovative trend you’ll see growing rapidly in the year 2023. Contactless payment allows customers to simply wave their smartphones across the reader. People are using this method of waving instead of inserting a card, and it is becoming more popular because consumers are more comfortable with the technology.
Contactless payments are faster and more secure than PIN technology. They send encrypted data to the point-of-sale device instantly.
Many companies including giants like Samsung, Apple, and Google already have contactless payment systems – Samsung Pay, Apple Pay, and Google Pay respectively.
To pay, all a customer has to do is simply download the app, add a card by entering card details, and then wave their phone across any reader.
Contactless payments are possible with NFC (near-field communication) technology, which is why they are also termed NFC payments.
2. Global Payment and Payment Gateway
Global payment processing has become increasingly important in today’s digital world. With the rise of e-commerce and online businesses, payment gateway services such as exactly.com have become a vital part of the industry.
A payment gateway is a digital payment service that is used as a channel to make and receive payments. It serves as a medium between four parties; the customer, the merchant, the issuing bank, and the receiving payment or acquiring bank. Payment gateways are important for online transactions. They use encryption and security measures to protect sensitive information, like card details. This technology is one of the simplest ways to collect payments digitally.
Payment links are another innovative solution that has made payment processing even more convenient and accessible for consumers. These links allow businesses to send payment requests directly to their customers, making it easier to receive payments on time. Payment links can be created quickly and easily and can be accessed from a web browser, text message, email, or social media post.
As the payment industry continues to evolve, global payment processing will only become more important, enabling businesses to accept payments from customers around the world.
3. Digital Wallets
Digital wallet adoption increased before the coronavirus, and the pandemic accelerated it even further. Now, more consumers use mobile wallets and digital-first lifestyles; more businesses offer them at checkout. This often makes it simple to pay with just one click. PYMNTS predicts that more than four billion global consumers will use a digital wallet in 2023.
As more people use them, digital wallets will continue to evolve and offer more capabilities to consumers. Many digital wallets help people transfer, store and spend funds, while some offer other financial services like loans, crypto payments, and BNPL options.
4. Cryptocurrency Payments
Cryptocurrency is a digital payment system that doesn’t rely on banks to verify transactions. It’s a cutting-edge peer-to-peer system that can enable anyone, anywhere in the world to send and receive payments with ease. Cryptocurrency payments exist purely as digital entries to an online database describing specific transactions.
With the growing acceptance of cryptocurrencies, businesses are starting to accept them as a form of payment. Major companies such as Microsoft and PayPal now accept some cryptocurrencies, such as Bitcoin and Ethereum. This trend is set to continue as more consumers become familiar with cryptocurrencies.
5. Buy Now Pay Later (BNPL) Options
According to a study by Juniper Research, currently, there are around 360 million BNPL users. And this number will reach up to 900 million users by 2027. Buy Now, Pay Later (BNPL) is a short-term financing that allows consumers to make purchases and pay for them later.
Using Buy Now Pay Later options has paced up because of its affordability and easy repayment process. Implementing BNPL also helps merchants in maximizing their sales and revenue. BNPL is a convenient option for all parties involved, including the consumer, merchant, and lender.
Undoubtedly, BNPL will continue to attract young customers who love shopping and older customers who don’t have credit cards. The BNPL method could replace traditional credit methods in the future.
6. Mobile Point of Sale (mPOS)
Mobile-point-of-sale (mPOS) is a revolutionary technology as it frees all merchants from their brick-and-mortar locations and in-store payments. It accommodates going to concerts, trade shows, food trucks, and other places to easily accept payments from customers.
The mPOS technology also improves the payment process by replacing central checkout areas with sales staff equipped with mPOS devices.
mPOS is undoubtedly going to be one of the most popular digital payment technologies in the future, and the stats suggest the same. Global Market Insights says that mPOS will grow 19% (approx.) over the next six years.
7. Biometric Authentication
Biometric authentication is a verification method that involves the biological and structural characteristics of a person. These methods include fingerprint scans, facial recognition, iris recognition, heartbeat analysis, and vein mapping.
Biometric authentication is a trend that you’ll see quickly emerging in the year 2023, as consumers become more concerned about their data security and the growing threat of identity theft. According to a recent report, fraud risks make biometric authentication – such as fingerprints or facial scans – a good option for digital payments in 2023.
Biometric authentication is a highly secure, accurate, and efficient method since it involves an individual’s unique characteristics. This factor also helps in building customer loyalty and trust, which is crucial for any business.
In conclusion, the payments industry is undergoing significant changes, driven by technological advancements and changing consumer preferences. Businesses that keep up with new payment trends will be better able to meet consumer needs and stay competitive. Contactless payments, digital wallets, cryptocurrency payments, BNPL options, and biometric payments are just some of the top innovative payment trends taking over the industry, and businesses that embrace these trends will be well-positioned for success.
