Changing of environment, technological trends, custom behaviors; along with ongoing pandemic has forced the stakeholders in an industry that is already in transition to revisit their business fundamentals.
Popular Payment trends 2021 aims to understand and analyze top trends in the payments service providers, card firms, and banks.
1. Increased Demand for Frictionless Experiences
What is a frictionless experience? And how come the frictionless experience will be a top trend? Let’s explore
Frictionless experience is basically to reduce or minimize the barriers involved in the checkout process for both online and offline hubs. That demands to eliminate or cut down the number of steps to make a purchase. And to make the purchase frictionless by making it one clicks payments, contactless card payments, digital wallets, and other invisible payment methods.
Examples of frictionless payments
Next, let’s look at some examples of frictionless payments and the industries that have been leading the way with their adoption.
Frictionless Payments have been a success all over the world. The ideas were adopted later in many countries. Frictionless Payments examples can be seen in different areas like Mobility, offline retail groceries, Restaurants and cafes, tourism, and many more
Uber car service is a popular example of Frictionless payments all over the world. Instead of making customers wait for payment charges; the app deducts money from the user account without asking them to lift a finger. And while the convenience doesn’t stop there, the invisible payment is definitely a key selling point.
Other examples in the mobility sector include Parking garages and toll booths; where the system scans vehicles’ license plates upon entry and charges the drivers upon their exit automatically.
Festivals & tourism
In tourism many countries allow visitors to plan and pay for their whole trip from attractions to transportation on a single app.
Restaurants & cafés
Many restaurants and cafes around the world allow users to plan and place their order before entering the café and to enjoy their order without even waiting for it. These restaurants and café include Starbucks mobile order, Wagamama’s app, and many more.
Offline retail & groceries
The same goes for the groceries section where users can purchase the items without ever having to worry about long waiting lines, scanning the items, and checkouts. A popular example includes the Amazon Go store.
Unlike offline retail, online frictionless payments were long before invented with 1-click ordering, saving the details of the user payment method and the address; allowing them to shop their order with just one click.
Today we’ve seen almost all the e-commerce business asking their customers to register themselves to save their payment methods and delivery addresses; thus, eliminating the process of entering address and payment methods again and again.
Similarly, mobile wallets allow online shoppers to perform one-click payments even without registering to the store in question since their payment details are already saved in the wallet.
All thanks to the easy access to the internet, the digital payments method is already a success; also, the sales have been accelerated during COVID-19.
According to The Futurist Group study, about 38% of consumers now perceive contactless as a basic feature of payments. The Juniper Research report says that half the world’s population will use mobile wallets by 2024.
2. Worldwide Adoption of Real-Time Payments
What is RTP? RTP or Real-Time Payment stands for immediate/faster/instant payment solution that enables its consumers and the businesses to send/receive payments in real-time; thus, providing speed and faster availability of funds along-with convenience.
The globalization, regulatory pressure, and expectations from the consumers have forced the merchants all around the world to adopt RTP; which enables quick sending and receiving of funds. The RTP systems have entrenched due to the proliferation of mobile phones, P2P apps, digital currencies, and biometrics.
3. Fraud Detection based Machine Learning
AI-based fraud detection is a dire need of every business nowadays due to the pandemic. Several businesses have operated their entire systems online due to elevated online transactions. This scenario has escalated the fraud rates as 33% of hackers sought to benefit from this disruption; several companies lost millions of dollars due to vulnerable security measures.
With this, there was a need for the highest grade of security measures which can be done through machine learning. With the help of machine learning, the apps will be able to identify any security breaches and will be able to adjust themselves in real-time providing fraud detection for real.
Fraud detection has facilitated cheaper customer service. Machine learning or AI has provided customer care by providing information related to processing automation, customer analytics, product information, customer feedback, call rerouting, and chatbots that can help in tackling basic questions by providing customers immediate response.
Ai has become a game-changer for e-commerce and digital systems by providing them smarter and much faster payment processors on which they can rely and analyze huge data pools and unearth useful insights. Reward systems, inventory processes, and sales optimization will also be elevated due to inclusion.
4. Processing payments through cloud systems
Cloud systems allow payment processors to access, process, and store data over the internet. This allows payment processors to permit consumers to transact from their devices. Many entities are moving forward to gear up the cloud services to provide better security, agility, scalability, and low operational cost.
5. Pandemic and Digital payments usage
During the pandemic, digital payments have been getting recognized globally. In the earlier months of 2020, nearly $4.4 million worth of digital payments were processed, making it an increase of 14% from the previous year, as reported by Statistia.
It is known that pandemic has increased the growth of the e-commerce market. The needs of various companies were shifted to develop contactless payment systems so that there are no unnecessary touches during the cash methods. The expansion of digital wallets and universal payment systems.
There are a lot of changes that have been expected in the payment world. Digital payment is one of them. By planning it early one can certainly outshine its competitors and emerge as a business that evolves during the times.
If you are having difficulty with systems and software programs. Be sure to contact at ConnectdotNet. By looking carefully at your firm’s needs the CDN team can advise what is the best way to modernize.