The advent of modern technology has resulted in radical shifts in society. Many innovations modified several processes, including payment methods. People can now process their payments using cash or any other electronic payment option.
Instead of using real cash, most people tend to use digital or electronic payment. These technologies show promise because of the convenience and dependability with which they operate. Nevertheless, what are the cutting-edge developments in payment technology today?
In this article, you’ll learn about the latest technological innovations in payment systems.
Contactless Payment
Contactless payment is a relatively new payment method that has gained popularity rapidly in recent years. This ingenious payment mechanism minimizes physical contact during transactions, making it a popular choice today. Unlike PIN technology, it has a speedy and more secure transaction process.
According to the Visa Global Back to Business Study conducted in 2021, the use of contactless payment has increased globally. The survey estimates that one in four individuals globally will favor cashless purchases in the next two years. Currently, 16% of consumers use contactless payment, but over 70% of businesses still accept it and recognize its importance to success. This has resulted in an 11% increase in stores accepting contactless payments from August 2019 to April 2020.
A self service payment kiosk is an excellent example of contactless payment, as they enable expedited transaction processes, increased security, and flexible payment alternatives. With its growing usage, contactless payment is set to revolutionize the payment industry and transform the way we conduct transactions in the future.
Biometric Authentication
Biometric authentication’s payment procedure provides a high level of safety. It uniquely conducts service transactions. People can use debit or credit cards, as this technology uses Radiofrequency Identification (RFID) or Near-Field Communication (NFC).
In addition, this involves evaluating the biological and structural characteristics of individuals. This procedure serves to verify the user’s identification and payment authorization. Consequently, it has become one of the fastest-emerging trends in payment technology.
Biometric authentication includes fingerprint scanning and facial and iris recognition. Thus, it provides an accurate, efficient, and secure payment process. Also, it can assist in fostering customer loyalty.
Mobile Wallets
Mobile wallet is another latest payment technology that enables individuals to electronically store and access their cash, allowing them to transfer and receive money without difficulties. One of the significant benefits of this e-wallet technology is that it stores all necessary card information on its customers’ mobile devices, making it highly convenient and simple to use. Moreover, the mobile wallet’s superior security features offer unsurpassed protection against fraud and other threats.
According to the Payment Drive research, the number of mobile wallet users worldwide is about 3 billion, which is expected to reach 4.87 billion by 2025. This is a significant growth over the past few years, reflecting the growing popularity of this payment option. Another survey estimates that the global volume of mobile wallet transactions will increase to about 50 billion by the end of this year, highlighting the efficiency and convenience of mobile wallets.
The 2021 Mobile Wallets Study projects that by 2025, half of the world’s population will utilize mobile wallets. China presently leads the globe in mobile wallet usage, with over half of adults using them daily and an additional 41 % using them weekly. On the other hand, in the United States and Canada, only less than 10% of adults use this daily.
Voice-Based Payments
Voice-based payments are yet another remarkable innovation in payment technology. According to research, more than 30% of consumers utilize this strategy. Moreover, less than 30% of users submit and receive money using this method.
However, as promising as it is, it still has security flaws, and 74% of its users have security concerns. Companies like Amazon and Apple are still investing in advanced smart speaker payment despite the circumstances.
QR Codes
The Quick Response (QR) Code is a two-dimensional barcode containing data. In addition, it is the quickest method for sharing and exchanging information. It can also reduce the cost of accepting payments.
In each transaction, customers will use unique codes. Generally, these codes are only temporary for enhanced security. Due to this, it has become a cutting-edge payment service with a seamless method of money transmission.
Conclusion
Significantly, the most recent advancements in payment technology have been beneficial to a variety of industries, particularly businesses. Transactions may now be completed quickly and easily thanks to recent technological breakthroughs, which have also contributed to an overall improvement in the quality of life.