We are in the 21st century, and technology has changed significantly.
There is a transformation in exchanging money and also in overall economics.
The payments systems are not only secure and hassle-free but also provide a chance to save money just like FuturePay Coupon codes.
The way we make payments online or in the store have undergone many transformations since the time of the Stone age.
The current payment methods have cutting-edge technology that contributes to the technological achievements in today’s world.
The digitalization era has impacted the payment methods and caused it to experience a huge jump.
Digital payment methods have become easy, convenient, fast, and secure with the advancement in the years.
1. Biometric Authentication System
Biometric authentication is a verification system which involves biological and structural characteristics of a person.
- When it comes to money, transactions, and finance, security is always the first thing we look upon.
- With the increasing number of fraud and identity theft, this type of authentication has become much more reliable and secure options when it comes to digital payment in 2020.
- It is a unique payment method that provides accuracy, efficiency, and security altogether.
- Some of the types of biometric authentication are Fingerprint Scanners, Facial recognition, voice identification, and Eye scanners.
2. Invisible Payments using Internet of Things
The Internet of things (IoT) can create seamless payment processes.
You can enjoy a faster payment method with IOT further in 2020.
- IoT is a platform where you are connected to the internet, after which you can collect and exchange data with each other.
- If you are a shopper on Amazon Go store, then you can select what you want to purchase, walk out of the store and receive a receipt on an app or via email or text.
- Similarly, all the drivers with RFID sensors can bypass toll booths and pay their tolls with a card.
- IoT is applicable in areas like Automotive, Consumer Products, Energy and Utilities, Government, Healthcare and popular in countries like Korea, Switzerland, Denmark, the United States and many others.
- The method consists of sensors that send you alerts automatically before performing any action.
3. International Remittance
International remittance is the transfer of money from a foreign worker to their family, friends, or other individuals in their home country.
- This method helps in constituting a significant portion of a country’s GDP.
- The use of smartphones and digital technologies have transformed the overall finance industry.
- One of the main reasons for the growth of international remittance is the entrance of smartphones and the substantial adoption of digital wallet solutions by everyone.
4. EMV Technology
Earlier, the bank accounts were distinguished only with random combinations of unique digits present on the card.
- But with the recent years, the EMV technology (Europay, Mastercard, Visa) have been introduced to make all the customers experience a more automated and secured mechanism for payment.
- The EMV technology is all about the utilization of codes that varies every time a person makes any transaction.
- The use of unique temporary codes enhances the security in the bank accounts by leaps.
- Therefore, codes can help in shaping the way we manage bank account systems.
- The digital technology systems include Smart Chip Technology, Biometric Sensors, Online Transactions, Artificial intelligence (AI), E-Wallets, and Mobile Banking.
5. Increasing Demand for Mobile Point of Sale
Mobile-point-of-sale (mPOS) is a revolutionary technology.
It frees all the merchants’ locations and in-store payments.
- It liberates you to go to various places like concerts, trade shows, etc. where it seamlessly accepts payments from all its customers.
- The mPOS technology makes the payment more streamlined and flexible as it replaces the central checkout areas equipped with mPOS devices.
- One of the examples is DigiPay which makes digital payment easy and has advanced mobile money solution.
- DigiPay includes Cashless payment, USSD payment, Merchant payments, Electronic KYC, Easy fund transfers and other features.
6. Smart Speaker Digital Payments
Smart speakers are well known these days as they make our task more manageable.
- You can give various voice commands such as to get weather updates, traffic update, ordering from Zomato or booking a cab from Uber.
- Smart speakers first came up by Amazon in the year 2014. Google Home and Apple joined Amazon in the year 2016 and 2017, respectively.
- Home assistants or smart speakers allows you to give voice commands to the speaker and receive a voice response in return related to what you asked.
- Many people nowadays use these smart speakers to send money or to make direct payments.
7. Top-rated security powered by Machine Learning Software
Machine learning is the first step you need to complete to achieve artificial intelligence.
Banks continuously feed their software with diverse new transactions.
- The software takes a set of limited transactions and learns to detect fraudulent transactions in real-time.
- As the software receives more transactions, it starts getting better in identifying any fraud.
- For example, you always receive a text message from your bank confirming that you initiated the transaction or not.
- It is a cautionary message for you to alert you in case of any fraudulent. The message you receive is with the help of machine learning software.
8. Contactless payments
We all know that the whole world will soon become cashless due to security issues.
In contactless payment, you have to wave your smartphone across the reader.
- The method is faster and convenient as compared to inserting a card.
- To make any payment, you have to download the app, enter card details, and then wave your phone across any reader.
- The cashless society means that all the financial transactions take place through the transfer of digital information instead of physical banknotes or coins.
- These are also known as NFC payments meaning near-field communication, used in countries like China, London, and Japan.
- Some of the types of cashless payments are Banking cards, USSD, Mobile wallet apps, QR Codes, ECS (Electronic clearance service), Gift Cards or vouchers, PoS terminals, etc.
9. The Superiority of Mobile Wallets
A mobile wallet is similar to a mobile application that tries to mimic an actual physical wallet.
- You can send money and receive money from other users, store money inside the wallet, and get great offers of cashback in your wallet if you make transactions.
- You can also pay utility bills, buy tickets, get rewards, and many more.
- With the coming years, you will see that many top companies will create their brand-specific wallets, for example, Apple, Google, and Samsung have their mobile wallets.
- A mobile wallet payment consists of various components that work together to perform completely secure, quick and cashless payment services.
10. Cryptocurrency Wallets
Cryptocurrency is a digital currency, introduced to work as a medium of exchange that helps in performing secure transactions.
- It is widely adopted anywhere in the world by startups to small-to-medium businesses.
- With cryptocurrency, you can send non-cash remittances to anywhere in the world.
- The cryptocurrency and blockchain technology eliminates the need for a third-party in a transaction, which leads to more secure transactions and also lower costs.
- The low fees associated with transactions using cryptocurrencies such as Litecoin (LTC), stellar (XLM) or bitcoin cash (BCH) make them excellent payment systems for international money transfers.
- Facebook is a great example, which is proposing a new blockchain cryptocurrency called Libra.
- The value of cryptocurrencies is enormous, and therefore many of the countries have banned the use of them.
Digital payments are our future.
In the coming advancing years, we will be clearly able to see physical cash transactions converting to digital payments.
These are some of the latest trends that will affect our payment ways and make it much quicker and secure.
The new latest payment method has massive developments in the span of four to five years, and we can see even more changes in the coming future.