Customers are always looking for convenience when it comes to shopping and payment transactions. WIth the pandemic issues, people started using online payment systems even more. They are abandoning traditional systems as they can be inconvenient and slow according to Rates ― rates.fm. So digital payment systems are more favorable because they offer so many advantages such as security.
As well, with the checkout process being one of the most crucial in customers and businesses journey, more users are turning to online payment systems like PayPal. It serves as a safeguard for money while ensuring swift and seamless global transactions. In order to stay competitive, it is crucial to keep up with the latest trends in the fintech industry, so here are some online payment trends to not ignore in the coming years.
Mobile Payments on the Rise
One trend to expect is the rise in mobile payments. According to Statista there are over $2.8 billion mobile payments across the globe. It involves using a mobile device to pay for products online or in a physical store.
Using mobile devices is not only convenient but also offers security. It is easy to perform a transaction through a mobile device in the USA and across the world. All that a user has to do is enter the payment details and confirm the activity. It is also the quickest way to pay for products online. There are several mobile payments options including:
- Google Pay
- Apple Pay
- Shop Pay
- CashApp
The benefits include:
- Faster payments
- Security
- Convenience
- Tracking finances
- Improved spending
Contactless Payments and NFC Technology
In addition, there is a noticeable trend moving towards contactless payments, providing customers with an enhanced level of authority over their shopping experiences, whether in the digital or in physical stores. The implementation of such payments relies on the usage of NFC niche, enabling users to make transactions using their iphones or other wearables.
This technological advancement has opened new opportunities for enterprises as they can integrate contactless options within the mobile payment systems. Also, the shopping journey for customers has increased the satisfaction level according to statistics. The payment apps are slowly becoming the new norm for everyone and, of course, it is standard for numerous businesses. As people incorporate their phones into their daily activities, including online commerce, it is evident that an increasing number of companies will adopt payment solutions to streamline transactions.
The apps are not only for payments but encompass the entire customer journey. Developers are taking advantage of the fact that people use their apps for many things by merging different functions. There are going to be more apps that are merged together in the near future. An example of such ‘super apps’ is WeChat. It offers e-wallets, chats and games.
Buy Now Pay Later
Companies are always looking for incentives to get customers to make purchases. One incentive that is growing across many businesses is the buy now pay later (BNPL). Many companies are using this payment scheme to get more customers. This all started with the financial difficulties many encountered during the pandemic. It allows consumers to spread out payments in monthly installments. This reduces the burden of making huge payments at once.
With this strategy, business owners can make profits while customers buy the products they need. Shoppers can get high-value products without exceeding their budgets. It is a win-win situation for everyone. One thing that has made BNPL schemes more successful is that it is a better option than using credit cards.
Businesses not only gain more clientele but increase product value. The average number of orders placed increases as more people are converted into customers. Because of this, the value of BNPL is expected to read over 565 billion US dollars by 2026. Brands using this payment scheme include:
- Shopify
- Affirm
- PayPal
Cryptocurrency and Blockchain Technology
Cryptocurrencies like Ethereum and Bitcoin are becoming widely used in different exchanges. Some companies accept coins. As opposed to banking systems, crypto is decentralized. This means that it relies on peer-to-peer interaction to exchange coins from their wallets.
It uses a blockchain that acts like a public ledger. It records all the transactions between peers. Cryptocurrency is going to be used more to make payments because it offers security and privacy. It has also become more accessible.
To use crypto, you need a digital wallet. This allows you to send payments. Something that is making these payment options is the prepaid cards. This allows users to easily transfer funds to a retailer. It is also easy to convert the value of coins into dollars. Despite the volatility of crypto it hasn’t stopped from launching digital currencies. As it becomes more mainstream, many in the US will use this mode of payment.
Security and Data Privacy
Hackers are always trying to catch up with the latest technology. That is why there are still a lot of fraudulent activities online. Cyber attacks can paralyze a company. An example is the impact of cyberattacks on the healthcare industry in Los Angeles California and other cities across the US.
To avoid this, financial companies and businesses will be spending more on building security. Artificial intelligence and machine learning are playing a huge part in security. Ways to ensure security include using:
- Fingerprints
- Behavioral biometrics
- Digital IDs
- User authentication
QR Codes
QR codes increase the security of online payments. This method allows consumers to shop online without worrying about hackers. By 2026, the market value of QR codes will be 25% of the current value. A QR code is not only used for paying but also for scanning restaurant menus. Customers can also use it to look for discounts in a store. In other cases, clients can avoid long queues at a store by ordering products to be delivered to their doorstep.
Conclusion
Online payment platforms are all about removing the difficulties that come with online shopping. The goal is to create a convenient way for customers to pay for products or services. By doing so, a business will remain relevant in a highly competitive industry. With more people looking towards online payment apps, security is a top priority. Businesses can provide a safe payment system through various technologies such as AI and ML.
With many problems being tackled, online payments are going to grow over the next few years. Anyone hoping to make more sales should incorporate online payments. Buyers are using online payments to buy all things.
