New Trends in Digital Payments in 2021

Tuesday, July 21

Over the past few years, we are much often paying for goods and services through applications. Therefore, there is a great demand for modern digital payment systems. The main requirements for new payment technologies are reliability and security.

This demand has provoked the emergence of an entire ecosystem of online transactions. Banks and financial companies are constantly improving the digital payment system, introducing new technologies.

Over the past 4-5 years, the number of online transactions has increased significantly. This growth is also caused by the global pandemic.  People try to avoid contact with other people and prefer cards and contactless payment for goods and services.

Cards are still the most popular method of cashless payment in offline stores. But mobile wallets, such as Apple Pay, are having an incredible momentum. Online shopping attracts more and more people every day. Peer-to-peer applications are pushing cash out of our daily lives. They offer a faster and more convenient way to pay.

These data prove that the transition to electronic payment channels is a necessity for all types of business.

Source: https://www.ecommerce-nation.com/digital-payment-trends-2021/

According to ECN, the number of online transactions in 2021 will reach $ 4.4trn. 65% of this amount will belong to the United States and China. These are countries with the highest share of digital settlements. Statista states that the total number of digital transactions will grow by 12.00% annually and by 2025 will reach $ 10,520,219m.

These data prove that the transition to electronic payment channels is a necessity for all types of business.

Here are some important benefits of electronic payment systems:

  • It’s fast

Digital payment is the fastest payment method. No queues and expectations, all you need is a phone, an app, and a few seconds of your time.

  • You can pay anywhere and anytime

One is not tied to time and place. People can make money transfers without borders, day and night.

  • It’s safe

Electronic payment systems offer many ways to protect funds: tokens, encryption, SSL, and more. Now your customers don’t need to enter card details every time they buy something. All data can be saved automatically, or they can use a one-time password to make a payment.

  • It’s economiс

You do not need to charge a high fee for registering payment accounts. All you need to do is pay a fixed subscription to your service provider.

  • Contactless

During the Covid-19 pandemic, it is important to be able to pay for goods and services contactless. Payment methods such as contactless POS terminals, QR codes, or one-time passwords are the best options.

Let’s see what new electronic payment services have prepared for us in 2021.

In this article you will learn:

  1. How do artificial intelligence and machine learning improve digital payments?
  2. Advantages of biometric authentication.
  3. What are cloud payments for?
  4. The popularity of electronic payments in the field of B2B.
  5. Unified commerce.

How do artificial intelligence and machine learning improve digital payments?

Machine learning and artificial intelligence have been used by financial companies to detect fraud orders and automate processes. However, their capabilities are much greater. With the help of artificial intelligence you can:

  • read the history of customer actions,
  • analyze their shopping habits,
  • predict their next steps and more.

Artificial intelligence can be used to make:

  • bank chatbots to help users resolve payment issues quickly;
  • payments through social networks. Messenger payments are already available on Facebook, Alibaba and Amazon.
  • chatbots on Facebook. Financial companies and banks are setting up chatbots in Facebook Messenger.  Now their clients can pay and solve issues using chatbots.

Advantages of using biometric authentication

Biometric authentication will help users make secure payments online. How does it work? This system helps identify the user by unique biometric metrics. These can be fingerprints, voice recognition, face recognition, and retinal scans.

Statistics Market Research predicts that by 2027 the market for biometric technology will be estimated at $ 76.64 billion. Its overall medieval growth rate is 16.2%.

Here are some important factors that influence the rapid development of biometric authentication technology:

  1. Convenience. This technology helps to make electronic payments fast, easy and does not require their physical presence in a bank or store.
  2. PIN code is not required. You do not need to memorize the PIN code, the transaction is made thanks to your biometric data.
  3. There is no limit on costs. Due to the risk of fraudulent activity, cards usually have set limits. But as long as you use biometric data for authentication – you can pay without restrictions.
  4. It is reliable and safe.  You can forget your PIN code, lose your card, and your biometric data is unique and no one but you will have access to the money.

What are cloud payments for?

Cloud payment technology allows you to effectively manage your payments. Implementing cloud payments will save you time and effort. You don’t need to track invoices manually, spend time sending regular payments, and worry that payment is coming late. With the help of cloud payment services, all this can be automated and save you time for other important tasks.

The popularity of electronic payments in the field of B2B

The development of electronic payments has had a positive impact on B2B online transactions. Companies are actively implementing their own payment services. They are doing it to provide their business partners with conditions for transparent and secure payments,  available 24/7. Setting up a B2B payment system means creating the best and most comfortable conditions for your customers.

Unified commerce

Unified commerce is the database that contains all the data about customers and products. It will help you learn more about customers, their behavior, and preferences. Based on this data, you will be able to customize your marketing strategy for your business.

This service combines mobile and e-commerce, CRM, Point of Sale, financial management, directory management and other functions in a single platform.

Why does your business need unified commerce?

When using multiple business management services, any failure or delay in communication affects data synchronization. It can cause problems such as the sale of goods that are not available or incorrect prices for goods. Unified commerce allows you to provide quality customer service and monitor all orders and categories in real-time.

Effective payment solutions are actively implemented in various countries, including Hong Kong, Indonesia, India and other countries. New startups are appearing on the market. They offer profitable and convenient online payment technologies. Among them are Stripe, SumUp and Pledge.

Some of the methods we mentioned may disappear, and some will remain and evolve. And startups, which are developing rapidly, will soon offer us many new and convenient technologies that will replace cash payments.

New Trends in Digital Payments in 2021

Over the past few years, we are much often paying for goods and services through applications. Therefore, there is a great demand for modern digital ...

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Tuesday, July 21

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