The mode of payments is becoming one of the most crucial and exciting sectors of technology for now. The attention the payment sector is receiving makes perfect sense as the industry is embracing disruptive technologies and is offering amazing new growth opportunities. The five main trends that will take place in the payments arena are listed below.
• Open Banking: It is a secure way that provides a user with access to financial institution’s information through the use of application programming interfaces (APIs). There are a few countries that are promoting this sort of banking in their local markets either for purely institutional information (fees, ATM/branch allocation), customer information or payment initiation.
• Contactless payments and Mobile wallets: Mobile devices are replacing the debit and credit cards and are regarded as the preferred electronic payment instrument. Mobile wallets are going to be the next things just like plastic money were a decade back, and therefore it is advisable to adapt to such technological innovations.
• Cashless Society: Nordic countries have already moved towards cashless payment, South Asian countries have also made a lot of progress towards going cashless. Going cashless is an opportunity to improve the economic conditions of the country and foster digitalization to reduce the fraudulent activities. However, this rapid move towards a cashless society can give rise to cyber attacks. Hence with advancing innovation, it is essential to consider the safety measures too.
• Instant Payments: Real-time payments are one of the significant elements of new payment solutions. The combination of instant payments with other technologies will make these account-based payments more appealing. The higher speed of this process is an added advantage, but other benefits like payment, certainty, and transparency are highly appreciated. However, the explosion of these payments strongly depends upon its adoption.
• Crypto: Since its inception in the market, the cryptocurrency has been considered as one of the main reason for disruption in the payment industry.