We hail from an era that has made online tremendous technological advancements in every sector, whether that’s healthcare, fashion, food, sports, financial, etc. However, we will mainly focus on the massive advances made in the financial sector when the whole payment system shifted rapidly to digital mode.
Gone are the days when we used to check our wallets twice before leaving home. All we need is our mobile phone to make digital payments, or smartwatches can also do the work. Digital payment has attracted billions globally, even before the pandemic scenario. However, it acted as a turning point from 2020 where people wanted to make contactless payments and maintain social distance.
Contact-free payment tech became the safer option for people enabling the global online payment industry to hit USD 5.4 trillion in 2020. Digitalization has given people the opportunity to make faster payments with convenience and security. Cashless payment systems are putting in more effort to make the payment systems safer and secure.
Mobile app development companies are looking towards some more advancements to the current digital payment systems. Well, here are some of the best 2021 trends you want to know to boost your company’s success.
Top Cashless Payment Trends to Change the Dynamics of FinTech Industry
1. EMV Technology
Shifting from reading the number printed on the cards, EMV tech is more secure. Europay, Mastercard, Visa (EMV) tech is a new payment method computerized and has higher security measures. Conventional magstripe cards stored all the data in a single magnetic strip, and one swipe was adequate to complete the transaction. Simultaneously, EMV cards have microprocessor smart chips with encoded data to save you from being scammed.
EMV is a super-advanced tech to finish transactions in offline mode too. Since the cards have microprocessors to interact with terminals, cardholder validation & offline transaction validation is possible. Enhanced security with no need for internet connectivity to the banks makes this new payment system one of the top payment trends.
2. Smart Speakers
With the revolution in payment technology, voice assistants are used to paying the dues. Smart speakers receive your voice command & answer your queries. Everything is possible, from booking a taxi to ordering food with these incredible speakers. All you need is to order Alexa, and the payment is made! Home assistants can be used to shop for products like groceries, home care, clothing, etc.
As per Business Insider, the use of smart speakers will rise from 18.4 million users in 2017 to 77.9 million users in 2022.
3, Biometric Verification
This is one of the most anticipated technologies of the online payment world. Biometrics authentication methods can make payments safely and securely. The biological & structural attributes of a human will help the system to verify him/her. The digital payment will be made after evaluating the biometrics through face recognition, heartbeat analysis, iris recognition, vein mapping, and fingerprint scanning.
This verification system can prevent thefts and frauds. Biometric authentication will secure the Tap-and-Go payment method with improved security in place. Efficiency, accuracy, & security are the three tiers of this payment trend.
4. mPOS Payment Technology
mPOS stands for mobile point-of-sale, and its demand is rising each day. Everyone is looking ahead on accepting payment through this mobile, be it a retail store or any street merchant. An mPOS is movable and can be plugged into the charging ports of smartphone devices.
A great mPOS tech can gather data and help you in expanding your business. This payment tech can make a substantial difference in making your business more efficient & well-organized. According to Global Market Insights, a CAGR of 19% is expected between 2020 to 2026.
5. Artificial Intelligence & Machine Learning-based Payments
AI and ML are the future of the payment industry. The most crucial aspect of every payment method is to be secure and safe. AI integration into the payment system can guarantee convenience and safety. An online payment system can have chatbots to offer 24*7 assistance to the users and respond to their queries. AI-based digital payment tech can flag unusual bills and tips that are higher than normal. AI eliminates the need for payment verification from banks. Amazon’s Deepens Tech eliminates the need to visit the cashier to bill your items.
6. e-Wallet Solutions
As reported by RetailDive, approximately 2.1 billion customers were using e-wallets in 2019. Mobile wallets are the new payment method acting as a virtual wallet, saving a person’s payment information on the smart device. You can send & receive funds virtually through a digital payment system. Transactions take no more time than a single tap, consuming less energy and time compared to net banking. Some of the advantages of this payment system include getting discounts, gift cards, vouchers, and great deals.
7. NFC Technology
You can pay money through your smartphone or credit card without having any physical contact. Besides being quick, smartphones or credit card systems ensure safety from viruses and bacteria. NFC (Near field communication) tech powers contactless payments through RFID (radio frequency identification).
A particular radio frequency enables the payment to be made via smartphone or card when the payment reader device and the payment tools are close to each other. Contactless payments are safer than magnetic stripe cards. These strips use obsolete tech, which is easily prone to become the victim of frauds and identity thefts.
Digital Payment Methods Will Continue To Boom
Digital payment tech, with the help of the top app development companies are reshaping the fintech industry. Several companies are investing heavily to make online payment systems more advanced and secure worldwide. There are several benefits of using these new payment methods, and in 2021 we may come across more.