With advancements in technology, the adoption of cashless solutions has increased to a great extent. The upcoming trends in payments will shift how consumers pay in the future; making credit cards and cash (so-called today’s rulers) – a thing of the past.
The payment industry
Being one of the most dynamic sectors in the financial-technology realm, the industry seems to have witnessed a 360-degree turnover; be it in regards to services or experience.
This means one can expect to see trends-driven product communication and convergence that enables payment companies to know where they stand in the industry. Digital commerce seems to be not restricted to computers or smartphones.
From connected devices to clothing, fashion accessories and sensors, everything around has the potential to usher in new payment form factors. Speaking of the ecommerce realm, payments are becoming more of a commodity in the commerce experience. Frictionless checkout payments are what end users crave for. As a result, changes are made. For instance, Mastercard unveiled a suite of APIs for card issuers. They said consumers, can have a single view of where their cards are stored irrespective of the digital devices they choose.
This means people are more easily able to control how, when and where their cards are used when accessing their card issuer’s mobile banking app.
Digital Payment Trends: What’s In There?
In an effort to keep up with rising consumer demands, many companies have created and deployed payment service products of their own. There are a plethora of options becoming mainstream, but the following are the emerging financial technology (fintech) trends to watch this year:
1. Mobile commerce
Mobile wallets are considered one of the most significant shifts in the fintech world. Using mobile wallets, businesses can enhance transactions and improve the overall shopping experience. In 2014, Apple made its way in the mobile wallet market. The following year, several big players joined the crew.
Today, Burger King, Chipotle, Starbucks and several other quick-service restaurants now offer in-app payments. Here customers can get their meals fully prepared without going to the restaurant, visiting the nearest ATM or taking out a wallet.
2. Voice Commerce
Although, it’s labeled as ‘coming soon,’ voice commerce is another promising trend. And it has the potential to transform the entire fintech landscape. It takes the latest trends in payments to a whole new level. In addition to this, it opens a serious discussion on how businesses should use voice commerce. Chatbots, in-home and connected devices are already out there. Thus, voice-enabled commerce is a new primary interface.
Considered as one of the most promising trends, Blockchain is used in all types of financial operations; bitcoins could be used to pay for any product or service. According to several sources, the trend is all set to make financial reporting much more transparent and secure.
4. Omnichannel Commerce Payment Infrastructure
With the evolving shopping habits, methods such as in-app and one-click commerce seem to have increased in terms of popularity. Today, many merchants seem to have managed multiple retail formats and channels, applying a genuine omnichannel payment strategy would undoubtedly break down all the barriers in certain areas like sales efficiency in-store, after-sales service, reduce fraud and increase overall customer satisfaction.
5. Virtual Experience Economy
Another hot growing trend and topic has been around bots, given their tantalizing possibilities. Like the ability for a bot to initiative a payment, the use of text bots for routine transactional queries will continue to gain in sophistication. There are already some financial firms experimenting with chatbots.
Wells Fargo– The FaceBook chatbot responds to several queries regarding deposit and credit card accounts, transactions, branch or ATM locations.
Capital One- “ Eno”, one of the best chatbots designed to interact with the bank’s customers via text messages. Moreover, it also provides appropriate information on customer accounts and provides help in making effective credit card payments from their smartphones.
Intel- The company came up with a virtual HR agent named Ivy. It is meant to answer employee related questions regarding pay, stock, benefits and so forth. With the help of natural language processing, the bot has more than 4000 responses to different queries.
6. Card-to-cloud transition
The global economy is headed towards seamless digital transactions, letting customers pay via any device. As these trends in payment continue to evolve, so does the consumer technology.
It’s not about where credit cards are accepted, but how they are accepted: via a smart device or a digital account. In 2017, Visa supported this trend in particular by releasing an innovative solution – mVisa. It’s a lovely feature that allows a third party to consider payment via mobile using unique QR codes.
The app allowed users to pay whatever they wish without taking their credit card/ wallet out. By scanning a QR code on a smartphone, customers pay straight from their digital account into a merchant’s card.
Anticipating, analyzing and modeling how these trends work is the way to succeed. The time is now to get in front of these emerging trends.