Top digital payment trends in 2020
Introducing 8 of the top digital payment models in 2020.
The economy, money, and how payments have evolved since the Stone Age.
In fact, all of this is indicative of our progress as a species.
Early methods marked the beginning of our lives. Similarly,
the current payment methods that use the edge of the world’s technology,
the technological advances of today, show us in a sense.
Digitalizing payments was a big leap forward in achieving the goal of easy, convenient, fast, and secure payment.
Most likely, we have achieved all those goals so far.
Digital payment methods have seen extensive changes over the past four to five years, and we will see more changes in the future.
At such times, it’s really exciting to see what 2020 has left for us. In this article,
we’ll look at all the digital payment methods that will shine in 2020.
#1 Biometric authentication
Biometric authentication is a method that will quickly emerge in 2020.
Biometric authentication is a validation method that includes a person’s biological and structural characteristics.
These confirmation methods include fingerprint scanners, face detection, eye detection, heart rate analysis and venous mapping (analysis of how the arteries are located).
With the increasing problems of identity theft and fraud, biometric authentication can become a safe and secure option for all digital payments made in 2020.
Even statistics show the same thing.
According to the data, by 2021 we will have more than 18 billion biometric transactions every year.
Biometric authentication is a unique and important payment method because it provides accuracy, efficiency and security in a single package.
Biometric authentication is a very secure method because it includes unique features.
This factor also helps build customer loyalty and trust.
#2 Generation Z, a generation familiar with technology
Before we go on, let’s first look at what the Z generation means.
Generation Z refers to people who fell between 1999 and 2012.
In other words, everyone between the ages of 7 and 20 is subject to Generation Z, the digital world generation.
Generation Z is about to surpass the entire Hazara population by 2020.
This change in population will be significant.
Because it shows that the vast majority of the world’s population by 2020 will be a generation familiar with or exposed to technology.
It is a generation that will become more dependent on modern, automated, faster and more efficient technology, and as a result, the demand for digital payment systems will see rapid growth next year.
#3 From card to code
Initially, bank accounts were identified only by a random combination of unique card numbers.
However, EMV technology (such as Europay, Mastercard, Visa) has gradually introduced a more secure computer mechanism for paying customers.
EMV technology today uses code that changes with each interaction.
Using these temporary codes increases security in bank accounts.
This example shows us how codes can shape how we manage our bank account systems.
However, the future of plastic cards will be overshadowed by more modern payment services that offer more convenient and stable ways to transfer and store money.
#4 Demand for Mobile Pose (mPOS)
Mobile Pose is a new payment method that allows sellers to pay customers regardless of location or even outside their store.
This method gives sellers the freedom to go to different places such as concerts, trade fairs, etc. and easily pay customers.
MPOS technology also makes a big difference in the payment process of a store by making it easier and more flexible to pay by replacing central payment locations with sales staff equipped with mPOS devices.
MPOS digital payment hash, as statistics show, will become a common payment method.
According to Business Insider, by 2021, mPOS usage will be around $ 27.7 million. That’s a staggering 3.3 million in 2014.
#5 Pay with smart speakers
Home assistants or smart speakers allow their users to give voice commands to the speaker and receive voice responses. The user can send voice commands for various purposes such as receiving weather, traffic status, ordering from Zomato (a food ordering service) or booking a car from Uber (an online taxi service).
Many of the world’s giants have invested in making smart speakers. Amazon was the company that introduced its first smart speaker in 2014.
Google Home and Apple joined in 2016 and 2017, respectively.
Speakers, which are an evolved version of smart assistants, were primitive in nature because they were limited to telephones only.
However, with the growth of home automation (smart home), smart speakers also began to be updated.
Let’s take a look at the statistics to better understand the state of the smart speaker.
According to Statista, 35% of users use a smart speaker to buy products such as toiletries, food and clothing.
Interestingly, about 28% of people used smart speakers to send money or pay directly.
That’s not a big deal, because few people decide to pay for smartphones because of security issues.
Concerns about security are widespread because a journal from TNS found that about 74% of users have security concerns about this type of payment, and acknowledged that they may generally skip this type of payment because of security issues.
But beyond that, the future of smart speakers looks promising because big names like Amazon, Google and Apple are investing in making their advanced smart speakers. In addition, the statistics also indicate a bright future for payments through smart speakers.
BI estimates that the use of smart speakers will increase from 18.4 million users in 2017 to a significant 77.9 million by 2022.
#6 Provide high security by AI and Machine Learning
Whenever it comes to payment, security becomes the most important element. People always prefer to use a method that is highly secure. That’s why payment technologies can’t thrive without high security.
Banks receive a lot of customer information and payment information every day. They use Machine Learning technology to detect all possible threats in a matter of seconds.
To achieve artificial intelligence, machine learning is the first step you need to take.
Banks are constantly feeding and filling their banking software with different and new transactions.
This software takes a limited set of transactions as an example and learns to detect counterfeit transactions at the same time.
As the software receives more and more transactions, it is better at identifying counterfeit transactions each time.
An example is when you receive a text from your bank asking if the transaction was done by you or was counterfeit.
This warning helps the user and the bank to prevent an accident. Naturally, no human will send you this text, and in fact it is a machine learning software that sends you all these texts.
How do companies around the world use artificial intelligence?
- Diagnosis and prevention of security issues 44%
- Solve technical problems of users 41%
- Reducing people to manage goods by automating them 34%
- Use in (RBA) or automation of job descriptions 16%
- Predicting possible future purchases of customers and offering similar products 19%
- Improving media advertising 16%
- Monitoring social media comments to check for business connections or problems 16%
- Compatible advertising (with different layers) 15%
- Financial exchanges 17%
- Telephone operators 15%
#7 Contact less payment
Non-contact payments are another payment method that you will see grow rapidly in 2020.
As the name implies, contactless payment allows customers to make a payment by moving their smartphone in front of the card reader.
This method is much faster and easier than inserting a card.
Contactless payments are also faster and safer than PIN technology because it instantly transmits encrypted data to the device.
Many companies, such as Samsung, Apple and Google, currently have their own contactless payment systems, Samsung P, Apple P and Google P, respectively.
The only thing the customer has to do is simply download the special app, add the card by entering the card details, and then move their phone in front of the reader or card reader.
Non-contact payments with NFC technology are possible. That’s why it’s also called NFC payment.
NFC payments are used in many countries. In China, for example, it is used as a payment on public transport.
In London, NFC payments are also made at bus and metro stations. In Japan, the technology is used to identify cards.
The UK’s Treasury Department, which represents some financial institutions and banks, predicts that about 36% of total payments will be made by 2027 through NFC contactless payments.
#8 Mobile wallets
According to a report by RetailDive, in 2019, about 2.1 billion customers will use mobile wallets, and this number is increasing in 2020.
A mobile wallet is nothing more than a mobile application that works just like a real wallet.
With the help of a mobile wallet, you can send money to other users, receive money from them or store money inside it.
In addition, with the help of a mobile wallet, users can pay their water, electricity, and gas bills, buy tickets, receive prizes, and so on.
Big companies like Apple, Samsung and Google have their own mobile wallets. However, all of these wallets have their own brand and company. In the coming years, more companies will try to create their own wallets.
Companies can easily estimate customer consumption with the help of a mobile wallet.
Several people play a role in a mobile wallet.
For example, a mobile wallet is created by a company, such as Google. Then loyalty cards and credit cards are created by some other company.
Many merchants also use the same Google wallet.
In simpler terms, a mobile wallet is made up of various components that interact to provide easy, fast and cashless payment services.
The future will belong to digital payments. In the coming years, we will see the transfer of cash payment methods to digital payment methods. Before the end of this transition, many new trends will emerge and disappear. These trends play an important role in shaping our future payment methods. Many of the processes mentioned above also play a major role in this process, but only time will tell how.