The way we pay has been evolving for centuries, with this development accelerating significantly in the last few years due to digital transformation: the number of payment options available is increasing; the way payment products and services are being built, deployed and utilised is changing dramatically.
Payment service providers and the businesses they service need to understand the trends in payments in order to offer products and services that meet the complete financial needs of consumers. Customers of today demand seamless, consistent interaction with improved security across payment channels.
So, what does the future of payments look like?
In this blog post, we highlight 7 future and developing payment technologies that businesses need to be aware of.
#1 FinTech payments
According to EY:
- 50% of consumers use FinTech money transfer and payments services
- 65% anticipate doing so in the future
Non-traditional, non-bank competitors are disrupting the payments landscape. The lines of distinction between banks and payments networks will continue to blur. To keep up, incumbents (predominantly banks) will need to act quickly and decisively, offering relevant value-added products and services to individual and business customers.
#2 Open platforms, collaboration and networks
Payment networks are moving from the background of the payments cycle to the forefront of customer relationships. One example of this is Visa’s Network Hub Push Provisioning, which provides access to push capabilities. This means that customers can register, manage and update digital credentials through the issuer’s mobile app.
#3 Seamless, invisible payments
Customers expect payments to become increasingly frictionless and “invisible”, with payment providers seamlessly integrating:
- Shopping experience
- Loyalty capabilities
Putting the customer in control of:
- Delivery timing
- Payment options
- Reward benefits
#4 Biometrics and digital identity
Data security is a key concern in the digital era. Biometrics (such as facial and voice recognition) will revolutionise the checkout process while making both online and in-store payments more secure.
#5 Artificial intelligence
As artificial intelligence (AI) matures, this technology will be used to provide more comprehensive insights into advanced point-of-sale credit decisions, targeted rewards and loyalty and more. AI will also help businesses make the right payment choices based on their specific needs, allowing for:
- Better decision-making
- Increased efficiency
- Improved security
- Accelerated innovation.
AI will also drive blockchain technology to improve payment processing and trading functions.
#7 Voice payments
Devices with voice recognition systems have increased in usage by 128.9% since 2017. This technology can be used in payment processing to reduce friction and improve the interaction between customers and channels. With recent improvements in natural language processing technology, “conversation commerce” is becoming more feasible. Customers will increasingly use voice recognition to shop, pay and manage accounts
For example, MasterCard is partnering with IBM and GM to create in-car payments systems using vehicle consoles, allowing for frictionless payments on the go.
How can you improve your payment technology now?
Smarter Business can help you bring your payment technology into the future. We offer a range of retail merchant service solutions that make the payment process more frictionless, seamless and cost-effective:
- Go Mobile – the latest in mobile payment technology with a mobile payment terminal linked to a smartphone app.
- E-Commerce & virtual terminals – allowing you to take payments online or over the phone on any smartphone tablet or PC
- EPOS systems – fully customisable for all your business needs.
- Standalone terminals – quick, simple card payment solutions (countertop, portable and mobile devices)
All our retail merchant services can be linked to the Smarter Business Ltd cloud-based portal, the ultimate tool to provide you with real-time payment data and analytics.