The digitization of payments has played a crucial part to achieve easy, convenient, fast, and secure online payments. Arguably, we have achieved all of it. Digital payment methods certainly have seen significant developments in the span of the last four to five years and we are about to see even more changes in the coming future.
As we move on from 2021, here are the must-know digital payment trends you should keep an eye out for in 2022.
The Mobile Shopping Experience Becomes Faster and Easier
Online shopping has become a preferred way to buy, and retailers should adapt their strategies with digital and mobile shoppers in mind. According to Brizfeel’s market research, 49% of shoppers now make their purchases via mobile. Mobile devices will continue to be one of the most preferred methods for making digital payments in the years ahead.
The Future of Payments Is Invisible
The use of contactless payments, particularly QR codes, has exploded in recent years — and it’s only getting started. QR payments are estimated to account for 27 percent of all digital commerce transactions by 2024, making it the most used digital commerce method in terms of volume, according to Juniper Research. With just a wave of your debit card, your watch, or your phone, you can buy anything from a latte to a car. Contactless is king when it comes to easy and convenient payments.
Contactless payments involving card readers are not going anywhere in 2022, but the growing popularity of digital wallets means that no-touch payment technology is increasingly popular.
Though contactless technology is nothing new, the pandemic led consumers and banks to look for ways to reduce physical contact among people.
Fintech is an unstoppable force
As more companies set their sights on embedding digital payments into software, they’re giving their customers more payment options. The boundaries between banks, fintech, and technology players are likely to diminish even more in 2022 and players can utilize suitable opportunities to move up the value chain and expand their revenue pools.
Embracing advances in technology is critical in order for businesses to grow. Going forward, businesses will need to seek out the technology that allows them to quickly shift and adapt to keep pace with ever-changing market dynamics.
In 2022, cloud technology, as well as open banking, should be on every business’s radar, as advances in these technologies can help them best meet new customer preferences for simple and secure digital payments.
Buy now, Pay Later
The ‘buy now, pay later‘ payment model has taken the world by storm over the last few years. Spreading worldwide, buy now, pay later (BNPL) providers such as Klarna and Clearpay have made their mark on the checkout experience by creating a new category, ultimately changing the way people pay forever. According to Juniper Research global spending via BNPL services will reach $995 billion by 2026, almost quadrupling the current figure.
Simply put, blockchain is just a database, more specifically a distributed database that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format.
The innovation with a blockchain is that it guarantees the fidelity and security of a record of data whilst increasing trust, security, transparency, and the traceability of data shared across a business network — and delivers cost savings with new efficiencies. Numerous studies have shown that blockchain implementation may save money, increase efficiency, and raise overall performance for a wide range of industries.
There is still a lot of room for growth in the blockchain industry and is expected to grow even more in 2022 given the profound changes it will bring to every sector in which it is used. The future of blockchain technology in banking, money transfers, and decentralized markets will be much more intriguing.
Biometric authentication is a trend that we’ll see quickly emerging in the year 2022. Biometric authentication is a verification method that involves the biological and structural characteristics of a person. These verification methods include fingerprint scanners, facial recognition, iris recognition, heartbeat analysis, and even vein mapping.
Biometric authentication is a unique and important payment method as it incorporates and provides accuracy, efficiency, and security under a single package. Biometric authentication is a highly-secured method since it involves an individual’s unique characteristics.
Digital payments are the future. In the coming years, we will see even more payment methods transitioning from physical cash to digital payment methods. These trends will play a vital role in shaping our future payment methods. Many of the above-mentioned trends will also play a major role in that process. But only time can tell how it will all unfold.