As changes in consumer behavior continue being rapid in the banking sector, technologies such as big data, IoT, machine learning, and mobile devices remain highly disruptive on the market. Simultaneously, security breaches continue to grow daily, placing both businesses and consumers at risk. This convergence of forces is having profound impacts on the way people pay for goods or services. That has challenged retailers and financial institutions to adjust their strategies on the future of payments.
Here are the top technologies that are paving the way for the future of payments:
Acceptance of Mobile Payments
According to research, nearly half of all e-commerce transactions in the UK take place through mobile devices. Another study has also revealed that about 66% of all mobile users in Europe have used their devices to buy goods and services. Nonetheless, the acceptance of mobile payments remains very modest to date due to the lack of added value compared to cash and plastic.
With APIs and open banking enhancing the customer experience with instant alerts and rewards, we can expect the acceptance of mobile payments to grow significantly. That’s because young consumers want an exceptional digital payment experience while getting compensated through targeted offers and discounts.
Today, nearly a quarter of African consumers are already using mobile payments across multiple channels, including betting platforms like Betway. The betway secure online rugby betting platform creates an engaging customer experience and allows you to deposit and withdraw without a traditional bank app conveniently.
While credit and debit cards may never go away, swiping them might soon be a thing of the past. Last year, contactless payments rose by over 150% in the UK and doubled in Canada. This payments method has become popular for small purchases due to its ability to speed up transactions by eliminating the need to key in a PIN when paying for goods or services. Unlike other payment options, contactless payments save time for both the customer and the
merchant. Another benefit – to banks and credit card companies – is that consumers who use contactless payment cards tend to use their credit cards frequently.
As consumers continue adopting AI-based voice assistants like Siri, Cortana, and Alexa to perform basic tasks, some banks are already starting to use this technology for payments. This innovation eliminates the hassle of remembering your password and going through the tedious login process every time you want to make payments. We can expect this method to gain traction in the future as voice recognition technology improves.
Use a Finger for Authentication
Just like voice recognition technology, fingerprint authentication is one of the methods gaining traction in payments. The technology is gaining popularity for its ability to eliminate the need for usernames and passwords when making payments. Aside from being a unique, accurate identifier, fingerprints are also more difficult to lose than passwords, hence offering a higher level of security.
As efficiency and security continue influencing the world of payments, we can expect to see more technologies aimed at moving away from passwords that can be stolen or guessed. As a result, unique identifiers such as fingerprints and voice recognition will usher us to a more secure future. That will also protect the consumers and make their lives easier.