First, it was traded by barter; then, it became coins. With the development of the world came paper money and credit cards. Now, we are in the era of smartphones and AI; digital payments are becoming the order of the day. History shows that payment methods and trends are ever-changing.
Each new method comes with more advantages than the previous one. The trend continues, and there is no sign of slowing down. Today, there are digital payment trends people generally use to perform transactions. This is what this article is about, and we will examine each one and the convenience they bring.
Buy Now, Pay Later (BNPL)
Shopping trends have changed in recent years as customers choose to use credit cards to make large purchases instead of debit cards. Statistics have shown that about 360 million people worldwide currently use BNPL services. It is expected to rise to as high as 900 million by 2027. This is unsurprising as it is one of the most convenient payment methods. Buy Now, Pay Later is a short-term financing that enables customers to buy things immediately but make payments at a later date.
Buy Now Pay Later has become increasingly popular due to its low cost and convenient payback structure. Interestingly, newer packages are released consistently, making it a cheaper option. Young people who enjoy shopping and senior citizens without credit cards are two of BNPL’s most reliable customer bases. The BNPL approach may replace more conventional means of establishing credit in the future.
Influx of Mobile Wallets
Mobile wallets are one of the biggest payment trends currently. It is just an app that functions similarly to a physical wallet but on a mobile device. It allows you to store money, send money to other users, and receive it from others.
In addition, a user can utilize a mobile wallet to pay bills, make purchases, and accrue incentives. One of such wallets is Trustly. This e-wallet is a simple-to-use app that performs a wide range of transactions. It has over 650 million customer reach, 8,300 merchants, and 12,000 connected banks around the world. It is also one of the most widely used apps for transactions across many sectors, such as the eCommerce, postal, travel, and iGaming industries. For the latter, you’ll hardly find an online casino that doesn’t have Trustly as a payment method. The reason for this is because of the low cost, instant payouts, and guaranteed payments. Thus, if you are interested in using Trustly as your favorite payment option, you can read more about Trustly casinos at Slotsoo. The site has an updated list of the best online casinos as well as their bonuses, wagering requirements, and game software providers.
Statistics predict that by the end of 2023, mobile wallet transactions will reach 49 billion worldwide. This is why many major corporations, including Apple and Google have begun offering mobile wallets to facilitate this kind of exchange. It’s expected that more businesses will strive to develop their proprietary wallets in the next few years. The components of a mobile wallet all work together to facilitate fast, convenient, and paperless cashless transactions.
Contactless payments are another form of payment that is a significant trend today. Technology has advanced so much that users can pay by waving their smartphones before a reader, as the term “contactless” suggests. This payment option became more favorable during the 2020 pandemic, which required as little contact as possible. Pins were removed to favor this contactless option. Its usage has been on a steady increase since then.
One of the new techs that encouraged the use is the instantaneous flow of encrypted data to the point-of-sale gadgets. It made contactless payments both faster and safer than PIN technology. Many major IT firms like Samsung have already released their versions of a contactless payment system. It is called NFC (near-field communication) technology. Many countries have adopted NFC payment systems, and many more are joining.
Increasing Demand for Mobile Point of Sale
The advent of mPOS is another revolutionary payment trend in the world currently. It allows businesses to move from opening kiosks to receive cash to a more flexible acceptance of payment at events and venues like concerts, trade exhibitions, food trucks, and more.
Mobile point-of-sale (mPOS) technology also dramatically improves the store’s payment process. It allows salespeople to use their own mobile POS terminals instead of relying on centralized checkout counters. According to the numbers, mobile point-of-sale terminals are quickly becoming the preferred digital payment method. Global Market Insights predicts that between 2020 and 2026, mPOS will grow at a CAGR of around 19%.
Biometric authentication is another payment trend in 2023. It’s a form of verification that uses a person’s unique biological and anatomical traits. These include fingerprint scanners, facial scans, iris scans, heart rate monitors, and vein maps. These are all unique to each individual and a great way to make secure payments online.
With this technology, the increased likelihood of identity theft and fraud is at its lowest. Its effectiveness could mean that biometric authentication could become the standard for all electronic transactions. Biometric authentication combines and guarantees precision, efficiency, and safety all at once. Because it depends on the individual’s specifics, biometric authentication is extremely safe.
The current banking system, financial institutions, and payment processors are being challenged by a growing trend to diversify digital payment methods. This is the use of Automated clearing house (ACH) transfers. This and bank wires used to be the only viable alternatives to paper checks. Since ACH was the cheapest option, it monopolized digital payments. Sending money by bank transfer is not only inconvenient, but it can also be a target for fraud. One-third of all attempted fraud in 2020 involved bank wire instructions.
Once it’s gone, it’s gone for good. In less than 25% of wire fraud cases, businesses were able to recoup their losses. The good news is that new competitors are entering the market, making real-time payments (RTP) a more viable option. Some of the most fundamental problems with digital payments, such as transaction fees and security, can be mitigated by using these alternatives, which are taken for granted by most businesses and consumers.