The ever-growing e-commerce industry also shaped the approach toward financial transactions drastically. This transition led to a massive decline in the use of physical cards and cash. Thus, there is no second thought that today’s era has come far from traditional payment methods and modes. However, you can’t pick any new payment technologies for transactions.
Several factors come into play when choosing an interoperable digital payment method, including security, transaction fees, and processing time. So let’s first understand what a payment gateway for online transactions is.
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What is Digital Payment Technology?
Digital payment means a cashless or contactless transfer of funds through cutting-edge transaction methods. Artificial Intelligence and Machine Learning technologies spearhead these payment exchanges, making them even quicker and more convenient. Today, you will find different payment systems, including mobile wallets, apps, and many more.
Undoubtedly, digital payment systems are here to stay. So what are the different methods of payment available today? Check out the list below.
Mobile Wallets
If you are trying to determine the best payment method, don’t look beyond. Also known as e-wallets, it is an electronic storage space that directly saves a person’s credit or debit card details. Apart from online shopping, you can even use them in physical stores.
Thus, you don’t need a physical card for every transaction, eliminating card fraud risk.
Pros
- Seamless checkout process
- Protects from card data theft
Cons
- Won’t work in network connectivity issue
Mobile P2P Apps
Another solution to which method is best for digital payment. Mobile payment apps are second to none in terms of security and speed. With these, anyone owning a smartphone or tablet can smoothly transfer funds to the point-of-sale device. Further, the merchants can seamlessly accept payments from their customers in real-time.
These payment gateways have certainly taken the world by storm. Today, you’ll find many mobile payment apps compatible with iOS and Android devices. Some top digital payment companies in the market are Paypal, Zelle, Venmo, and Cash App. Learn more about Cash App gambling here.
Pros
- Widely accepted
- Receive rewards for initiating transactions
Cons
- Privacy concerns
Contactless Payments
The advent of smartphones also gave rise to contactless transaction systems. By using near-field communication technology, these innovative payment methods ensure a more seamless and faster experience when transferring funds.
Further, the RFID-enabled (Radio-frequency Identification) credit and debit cards also allow users to make contactless payments. So no need to swipe a card or count cash to make a payment.
Pros
- One-click transaction option
- Convenient to use
Cons
- Transaction limits
Social Media Channels
Social media networks are growing their reach by offering payment solutions as well. For instance, business accounts can sell directly from Instagram and Facebook platforms for a small fee.
Once started as a source to connect with family and friends, social media platforms evolved into a medium for online purchases. Due to the hassle-free process, many millennial shoppers prefer shopping via the brands’ social channels. Hence, these payment gateways can likely be the next big thing.
Pros
- Instant shopping experience
- Follows encryption protocols
Cons
- Accounts are vulnerable to cyber attacks
Smart Speakers
If you’re wondering about the latest payment methods, here’s something unique yet reliable. Nowadays, the smart speakers at your home are more than playing a favorite song or checking the weather.
You can even use home assistants, such as Amazon Alexa, Google Home, and Apple HomePod, to buy groceries and make direct payments.
But currently, this technological payment wonder has fewer users due to security concerns. Nevertheless, a study reveals that the chances of its growth are not meager, with a projected 31% boost in users in 2022.
Pros
- Quick payments via voice commands
Cons
- Security concerns
Crypto Payment Wallets
When it’s about modern payment methods, missing out on cryptocurrency is a crime. Unlike traditional banking methods, crypto payments don’t require third-party verification to transfer funds worldwide.
Since it operates on decentralized blockchain technology, your identity stays anonymous. Moreover, the transaction process via crypto wallets is faster than any other digital payment method.
Pros
- Low transaction and international currency exchange charges
- Accessible globally
Cons
- Non-reversible transactions
Bottom Line
The fintech industry revolutionized the payments landscape for businesses and consumers both. The rising credit and debit card frauds are shifting users’ focus to digital payment systems. Since digital payments are convenient, secure, and lightning-fast, they guarantee that the e-payment trend will only get more prominent amongst the tech-savvy generation.
