The future is now! Welcome to a whole new digitalized world. If you still pay using paper currency, it’s likely you won’t soon. Trends in payments will shift how we pay in the future; credit cards and cash will be a thing of the past.
Digital payments revolution by the numbers:
The last 4-5 years have been revolutionary for the digital payment industry. Since the introduction of a cashless system, there have been numerous reforms that show expansive digital development. In fact, according to statistics, digital payments in India reached 1,162 crore INR transactions between April and November last year and are expected to surpass 1,800 crores INR in the current fiscal year. With such mind-boggling numbers, it is indeed important to keep up with the latest digital payment trends.
Payments and linkage with Digital identities:
The way we pay is changing. Digital identity is the new key to unlock a range of products and services. As shopping habits evolve, e-commerce and m-commerce methods such as in-app or one-click commerce are becoming increasingly popular. As most merchants manage multiple retail formats and channels, a genuine Omni-channel payment strategy would break down barriers to improve sales efficiency, reduce fraud and increase overall customer satisfaction. Retailers like Amazon are highly investing to provide the customers with convenient ways of shopping by introducing e-wallets where customers can load money and use for their future purchases. Many customers are turning towards these methods, in-store payment apps as they allow users to pay for items in the physical store via apps on their mobile phones. Consumers find these options safer and quicker than waiting in line at the store.
Digital payment methods becoming mainstream:
There are different digital payment methods, like bank cards, digital payment systems (PayPal, Apple pay, Google pay, Venmo, Amazon Pay, etc.) and debit cards. Digital Payments find different sectors to promote the idea, like retail, transportation, entertainment and media, banking and financial sector, etc. Social media platforms are also enabling payment options. For example, Snapchat has released SnapCash that lets users exchange cash from an account holder to another instantly. To make digital payments safe for consumers to use, companies are trying to develop security software.
Currently, several countries have or continue to modernize payment structure and adapt faster payments. To grow their faster payment techniques and bring efficiency in it banks are collaborating with third-party developers to create and deliver innovative credit transfer services.
Millennials accounting for close to 27% of the global population, have technology as an integral part of their lifestyle. The present generation has been identified to be heavily influenced by technology, while the population’s buying habits are based on instant gratification and convenience. The internet drove e-commerce across most of the sectors and regions. With the entire world shifting towards more technologically driven payment methods, digital currencies like Bitcoins are also emerging. However, this payment method isn’t entirely regulated and recognized as a financial service by the governments.
Seamless integration of payment solutions is a major driving force in the digital payments market. Payment, although a small component in banking, is now becoming a key competing factor amongst global banks today. In this competitive world adopting digital wallet payments has become important to outdo each other and change for the better.