With the advent of online payments, we are quickly seeing the disappearance of conventional payment methods in business. There are multiple trends that are proving a challenge to businesses and giving them no choice but to align with faster and more efficient payment methods. This alignment is informed by the demands and continually evolving needs of modern consumers and their need for speed.
As businesses receive payments more quickly, this may allow more predicable spending, investing, and budgeting, along with easier cash flow management. Over time, business processes and models could undergo a dramatic shift based on the availability of faster funds. Here are three digital trends in payment and merchant options we can expect to see in 2020 and beyond designed to meet the demand for instant transactions.
Enhanced mobile payments
As the use of mobile phones continues to increase, more and more consumers are seeing the benefit and convenience of making payments with their smartphones. The introduction of APIs that make it easier to integrate more helpful and relevant functionalities in mobile apps has provided vast potential for the growth of mobile actions.
More emphasis is being placed on making mobile payments more instant, accurate, and flexible. This was a trend that wasn’t initially embraced due to insufficient added value to what was already being provided by cash payments and plastic cards. However, thanks to increased efficiency, it has since become regarded as an attractive proposition.
There is a high possibility that the use of such tangible systems as ATM cards in processing payments will have been downgraded in terms of relevancy in 2020. At the same time, while mobile apps like Android Pay and Apple Pay open the door for biometric authentication, it is evident that this is a trend that will have a place in online payments in 2020.
Online businesses are already upgrading their software in order to support biometric authentication as a payment method. Biometric technology has advanced beyond basic facial recognition and fingerprinting to heartbeat analysis, vein mapping, and iris recognition. Each of these technologies has the potential for biometric payment systems in the future.
Wearables and contactless
Payment channels such as wearables and contactless are expected to be game-changers. With the widespread use of payment apps, mobile apps, and smartphones, wearables provide efficient access to these apps on the go, at any time and in any place.
The convenience of real-time is the key here. Consumers are able to make contactless payments for everyday purchases- particularly in transactions of small value- safely, and quickly. These payment options also help to improve customer service with banks through faster, seamless, and integrated transactions.
Stay agile or go home
Online businesses are embracing and investing in the above trends to remain relevant and competitive, with 2020 just around the corner. These trends are being dictated by a new cohort of a generation that expects immediacy, simplicity, and the need for greater security.
Online businesses that restrict themselves to conventional payment methods will have no choice but to change their systems and strategies or risk losing out to their competition faster than they ever thought possible.