As a result of the advances in security technology and the evolving habits of customers, the payments industry is experiencing rapid growth.
Advances in security technology and the evolving habits of customers has led to rapid growth in the payments industry.
Here are 7 key trends that are redefining the future of payments.
The Rise of Gen Z
Reports suggest that Gen Z will account for 40% of the total United States consumer base by 2020. The report aptly notes that this generation were born in the age of smartphones and crave instant and highly personalized experiences.
The trend is leaning increasingly towards instant payment options. This is evident by reports that reveal that the top 3 payment methods favoured by online shoppers are Credit Cards (42%), electronic payments (39%) and Debit Cards (28%).
User Experience is of Paramount Importance
The payments universe is rapidly expanding and customer experience is fast becoming the deciding factor to gauge the success rate of a business.
Enhanced customer experience is rapidly defining the future of payments. More than 60% of Millennials and Gen Z consumers are willing to share their bank account details with third parties.
Mobile is the Next Frontier
Mobile payments have redefined financial transactions on a global scale. Customers are increasingly looking for unified, hassle-free mobile payment experiences and simpler ways to bank and transact their money.
In-store mobile payments are poised to surpass Credit Cards with a predicted growth from $75 billion to $ 503 billion in 2020.
Credit Card swapping is a new trend among young consumers who are actively seeking more rewards for purchases. Payments technology players must make the most of the opportunity to deliver rewards that cater to the customer’s individual needs, in real time and in a seamless manner.
FinTech Companies are Collaborating with Banks
FinTech companies have redefined all aspects of financial services. The partnership between FinTech companies and banks is vital to the continued success of payments modernization.
FinTech companies and many leading banks are increasingly investing in payments innovation.
It has become a necessity that banks’ security frameworks must evolve and change as security threats become increasingly advanced.
Biometric authentication, fingerprint ID and facial recognition technology will power more than 18 billion transactions by 2021.
Payments Options Have Expanded
Payments are now extremely dynamic with a multitude of options available to the customers. Today, the payments landscape is saturated with players such as PayPal, Stripe, RazorPay, Apple, Samsung and Square among others. There is no dearth of payment options for vendors and customers.
Credit and Debit Cards have revolutionized the payments landscape in recent years. The future will see the wider acceptance of contactless payments and sound-based payments globally.
Code is Reinventing Payments
The way in which consumers handle or approach Credit Cards is poised to undergo a radical change. The introduction of the EMV chip Credit and Debit Cards has brought software code to the forefront of financial transactions.
This has allowed the adoption of next-generation payment solutions like Apple Pay and Android Pay.
Explore futuristic payments modernization solutions with Evolvus to stay ahead in the dynamic payments industry.
Balaji is the co-founder and Chief Executive Officer of Evolvus Solutions Pvt Ltd. He plays a critical role in anchoring strategic priorities for the company to gain leadership position in the payments domain.