Payment methods have gone a drastic change in the last few decades and today retailers are only roping in the latest to serve their customers. It is all about convenience and better customer experience and digitization of payments is certainly the way forward. It is easy, convenient, fast, and secure. But digital payment methods have also gone through a massive transformation in the span of four to five years and keeping the future in mind, it is now the best time to ‘go digital’.
Here are the digital payment trends to keep abreast with in 2021.
Biometric authenticated payments
Keeping security in mind, biometric authentication and payments through verification of biological and structural characteristics of a person will emerge as the most secured mode of digital payment. According to Biometric Update.com, 2.5 million (approx.) payment cards will be issued in 2021.
Code generated payments
The EMV technology (Europay, Mastercard, and Visa) has gradually rose to prominence and today laced with this technology, a customer is generated a code each time they proceed to make a transaction. This hikes up security and reduces the risk of card data getting out through frauds.
Mobile Point of Sale is also very high in demand
One of the most seamless and flexible modes of payment, mPOS diversifies touchpoints for customers and makes checkouts from anywhere and everywhere a big reality. According to Global Market Insights, mPOS will have a CAGR of 19% (approx.) between 2020 to 2026.
The world has gone smart in their approaches and payments are not far behind. Today, a customer can order on Zomato or book a cab on Ola via the smart speaker. They can pay through voice responses as well and this assisted mode certainly makes payments easy and on-the-go.
Making it work through contactless payments
A payment method that has been on the rise since the time digital payments became a reality is –Contactless payments. Customers simply have to wave their smartphone or cards across the reader or the POS station and the payment is conveniently done. This method ensures faster checkouts and is more secure as there is no way that someone can steal the PIN for the cards, however minutely they observe the transaction.
Rise of mobile wallets
According to a recent estimate about 2.1 billion customers have been using mobile wallets in 2019. Mobile wallet replaces the concept of a physical wallet and today there are umpteen wallets ruling the digital payment space. The transaction volume is only growing every passing day and globally it is becoming the trend to watch out for.
Secured payments guided by AI
Security is crucial to digital payments and consumers love to use the methods that are highly secure. This is where AI comes to the rescue and financial institutions using AI and Machine Learning keep a tab on customer transactions each day, just to detect all the possible threats on customer transaction from beforehand.
Machine learning is the most prudent way to keep a tab on transactions and it is used to check frauds in real-time without any lag.
Digital payments are here to stay and very soon carrying cash will become a thing of the past and it will all be happening virtually all across devices and categories.