Payments are an integral part of our lives. During the pandemic, we have seen exceptional growth in digital payment platforms. Digital payment is the electronic transfer of currency from one account to another like mobile wallets or mobile apps.
An electronic payment digitally simplifies business transactions between two parties that comprise Bank transfers, eChecks, and Buy now-Pay later solutions.
Digital payments appear online and on physical sites. For example, if you purchase something from Amazon and pay for it via UPI, it falls under digital payments.
The benefits of digital transactions
Economic progress
Consumers deal more online when they get the easiness, accessibility, and safety of online transactions which reflects that more people feel contented purchasing online, spending digitally, and transferring funds by electronic means.
Security and effective tracking
Dealing in cash is a tedious task. Alongside the hazard of losing money, there is the aggravation of carrying cash everywhere you go and keeping it secure. Through digital transactions, one can keep their funds safe in an online platform.
Want to know about the top digital payment methods? Read on to find out more!
- Banking APIs
Application programming interfaces let banks segment data and material amongst one another through a third-party submission. APIs are used for any organization to entrench its products into a nonfinancial organizational platform.
Open banking platforms reveal new revenue streams by charging fees based on the services. They can get visions from working with customers who can improve their aids.
- Biometric verification
It is a process where a person is recognized by a device, where it assesses one or more unique individualities like fingerprints, retina patterns, and signatures.
In the finance industry, this method is for mobile apps to validate a transaction. Android phones can direct information with a payment request comprising behavioral biometric information. These added signals will make verification more vigorous and fraud detection better.
- Distributed ledger & Blockchain
One of the most prevalent and extensively used forms of distributed ledger is blockchain. Blockchain provides a way to generate a tamper-proof log of sensitive movement. It is beneficial in the finance industry because it cut down operational disorganizations.
- PoS Workstations
PoS is called the segment where a sale takes place. Earlier, its terminals were the checkout counters in stores. One of the common categories of PoS machines is for Debit cards, where consumers make payment by swiping the card. Digitization introduced new PoS techniques in the market.
- Mobile Banking
It states the act of leading transactions and banking actions through mobile devices.
Banking services such as IMPS and NEFT are available on a single dais in mobile banking applications.
The top digital payment platforms
- Amazon Pay
Amazon is undoubtedly one of the most prevalent sites across the web, having onboarded customers with accounts. Adding Amazon Pay in the store can make it easier for clienteles to shop. The platform offers fraud protection as well. Its payment technique operates on mobile devices, providing a unified experience where it matters furthermost.
- Google Pay
The platform promises an intuitive procedure on desktop and top-notch security through encryption. Google Pay permits vendors to set up loyalty programs and deals for consumers. It enables customers to skip plastic cards and works with multiple payment platforms. The service is free for consumers.
- Stripe
It is a payment platform provider with an emphasis on technological advancements. Stripe has over 4,000 employees in over 14 countries, with the maximum number of online shoppers in the U.S. It offers customizable payment solutions at reasonable rates.
Stripe focuses on developer-driven payment solutions permitting its services to scale with organizations of all sizes. Consumers can build the platform they take benefit of Stripe’s integrations with current platforms, comprising Wix, Squarespace, and BigCommerce.
Stripe offers many of the features counting support for over 135 currencies and payment types, mobile payments, and user dashboards with robust transaction reporting.
Final Words
Digital payments are considered the future of the payment sector. In forthcoming years payment methods can be seen transitioning from actual cash to digital payment platforms. Indeed, these trends will shape upcoming payment methods.
People prefer payment methods that are expedient, secure, and simple. Mobile payments are evolving faster in the current era. The above digital payment platforms are evidence that they are the future of transactions.