In the post-pandemic world, where humans mostly prefer to go contactless, digital payment platforms have acted as a blessing. These payment solutions have helped businesses big to small scale up to give an experience that is not only convenient but also secure and personalized. As the demand for digital payment solutions is on the rise, 2023 will be a year of change and innovation.
Scroll through to get acquainted with the latest advancement in technology and the top 5 digital payment trends that are going to disrupt the fintech world.
- Biometric Authentication
When it comes to matters of money, security is a paramount concern. And with rapid digitalization and innovation, the baking and eCommerce sector has evolved like never before.
These technological advancements are making banking services faster, more convenient, and more secure; avoiding fraudulent practices and making the baking landscape safer. One such feature is Biometric Authentication.
It is a security measure that uses the biometrics of the user for the verification process, and thus identifies the right person trying to access an authorized device. It is a trend one will see emerging in 2023. The various verification methods include fingerprint scans, facial recognition, iris recognition, heartbeat analysis, and vein mapping.
With the increase in the risk of identity theft, biometric authentication has become a reliable option for all digital payments. According to research studies, it is estimated that the global expenditure for using payment cards will be 45 trillion in 2023. Thus, this year we will see a rise in the implementation of biometric authentication as it incorporates and provides accuracy, efficiency, and security under a single package.
- Mobile Point of Sale
Mobile Point of Sale famously known as mPOS can turn tablets and smartphones into cash registers. Hence, all one needs is a device where merchants can very easily accept payments from anywhere in the world. Research estimates that mPOS systems will be used to complete nearly 25% of all transactions by 2023. They are moreover popular in the food and beverage industry where restaurant owners want n mPOS system at their establishment.
It is viewed as a revolutionary technology that has freed all merchants from their brick-and-mortar stores and eased in-store payments. This has thus brought about a liberation that allows merchants to sell their products in various places like concerts, trade shows, food trucks, and many others where they can seamlessly accept customer payments.
Analysts predict that this technology is likely trending as it is making processes more streamlined and flexible by replacing the central checkout areas with sales staff equipped with mPOS devices.
- Smart Speaker Payments
Home assistants and speakers give voice commands to a speaker and receive a voice response in return. The user can use the technology to give voice commands for multiple things like weather updates, traffic updates, ordering from Swiggy, or booking a cab from Ola.
Interestingly, many people use these devices for making digital payments. It is estimated that 28 percent of people use smart speakers for sending money or making direct payments. Even though it seems to be a smaller number compared to other modes of payment, it will rise with the rate of change in technological evolution.
Another reason why users are still skeptical about smart payments is the security concern. A press release from TNS estimated that around 74 percent of users have security concerns about proceeding with payments over voice assistance. But there is also a flip side to this coin. Analysts have indicated some bright stats for the future of smart speaker payments. They say that in the year 2023, usage of smart speaker payments will grow by a whopping 77.9 million users. And that is quite huge!
- Contactless Payments
The pandemic has encouraged users to opt for contactless payments, and there has been a rapid increase in the number of users. As the name suggests, it allows users to simply wave their smartphones making the payments faster and more convenient than inserting cards.
It is estimated that the use of contactless payment will rise in years to come as big brand names like Samsung, Apple, and Google already have their contactless payment systems in place like Samsung Pay, Apple Pay, and Google Pay respectively. The systems are also feasible as all one got to do download the app, add a card by entering card details and scan their smartphone across any QR to get the payment done.
The technology used to make contactless payments is NFC. Near-field communication technology is used in multiple countries like–China, where they have contactless payment systems in public transport. Likewise, the contactless payment system is used in London in bus and tube stations. Some research journals predict that in the upcoming five years, nearly 36 percent of the total payments will be done using Near Field Communication payments.
- Mobile Wallets
A report by payment dive stated that there were around 2.8 billion users of mobile payments and it predicts that the number might increase two-fold by 2025. The ever-growing number goes up to 4.87 billion users, and the year 2023 will just act as a catalyst to boost this rise.
As famously known–a mobile wallet is nothing but a mobile application that mimics an actual physical payment. With its help a user to do multiple forms of payment from paying utility bills, and buying tickets to sending and receiving money to other users.
As per Jupiter Research, the volume of transactions in the financial year of 2023 for mobile wallets will grow up to 49 billion. This has made big brand names like Apple and Samsung provide mobile wallets to encash this transaction.
Analysts predict that 2023 will be all about making payments frictionless, and with the quick expansion of the market for digital wallets, it will be a reality sooner than later. Stay tuned as investors are welcoming innovation, and this year will only see there will be a disruptive change making payments more convenient and consumer-centric.