More and more businesses are encouraging their customers to make digital payments. So, how will this impact our way of life when we make transactions with businesses? Here is a quick look at the future of electronic payment transactions.
More Mobile Wallets
Cellphone security is constantly improving, and online payment providers are finding better ways to keep their clients safe. Therefore, we are seeing a huge increase in mobile wallets, especially during the start of the pandemic back in March 2020. More people had to find ways to make transactions without interacting with people face-to-face, so mobile banking and payment methods are the most convenient and safest option.
Additionally, many people are incentivized by shops and the mobile platforms themselves to use mobile wallets. It is estimated that in 2022, mobile contactless payments will likely go over $1 trillion, which is a huge change in how consumers make payments. Therefore, more businesses will also have to adapt to this, creating their own mobile wallets or hiring payment processing providers.
Biometric Payments
A particularly unique payment option that we may see in the future is biometric payments. A person’s special physical characteristic could function as a credit card, making payments without having to carry any particular item like a card or your phone. For instance, Visa in 2018 was testing out how using a person’s fingerprint for authentication instead of an easy to guess PIN number.
Biometric payments could keep people safer by making it more difficult for hackers to get into people’s finances. Therefore, it is likely that fingerprint scanners could be used to facilitate transactions instead of the future, getting rid of the need for cards. If this happens, it is also likely that our fingerprints can be linked to account information.
Wearable Technology
Wearable technology as a payment transaction is growing in popularity, and it experienced a boom during 2020. For instance, radio frequency identification bands is a popular way to facilitate wrist-based payments. We often see these wrist-based payments in amusement parks, festivals, and concerts because it is easy for people to buy things and it decreases the risk of losing cash or cards.
So, why would wearable technology be an advantage to having a card that we already have? For one thing, it is harder to misplace something that you are wearing. For instance, you would have to break or physically remove your band from your wrist to lose it. However, it is very easy to lose your wallet, especially in a place like an amusement park or festival.
More businesses are adapting to contactless payment methods. Many businesses are getting wireless and electronic readers to cater to the consumers that have wearable technology. Therefore, businesses are adapting because doing so can grant them more sales since most people prefer contactless payments over cash.
We live in a technologically advanced world, so we are adapting quickly to digital payment methods over traditional bank transfers and actual cash. Digital payment methods can be extremely beneficial for people around the world as we develop.