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Payments today look nothing similar to what they used to be a few years ago. They are powered by cutting-edge technological developments that have truly changed the industry and the way people interact with their funds on a daily basis. Bringing the payments into the digital space allowed for them to be executed in a faster, smarter and simper way, while the latest security technologies ensure the safety of all digital transactions. Yet, the industry participants don’t seem to be slowing down. Instead, they keep coming up with new innovative ways to perform conventional tasks, revolutionizing personal and corporate money management.
Trend #1: Biometric authentication
You have sure heard of it before, but 2020 will become the year of significant advancements in biometric authentication, making it an essential point in the value proposition of banking services providers.
Biometric authentication is nothing more than an identity verification method through the biological and structural characteristics of a person, including fingerprint scans, facial recognition mechanisms, heartbeat analysis and vein mapping. The issues of identity theft and financial fraud, biometric authentication became one method that can ensure high-level safety, while being convenient for the user. It is a unique technology, as it contributes to the accuracy and efficiency of payments in the modern times of instability and helps build trust towards institutions and services providers.
Trend #2: Mobile POS
It refers to the compact and convenient technology that enables merchants to seamlessly accept payments from customers wherever they are, not being limited to their store’s location.
The mPOS technology has not only changed the mechanics of digital payment process but also the business operation by making internal organization more streamlined and flexible. The benefits of mPOS will continue to be ripped across industries; Business Insider suggests there will be around 27.7 million mPOS devices by 2021, which is an immense progress compared to 3.2 million in 2014.
Trend #3: Security powered by AI and Machine Learning
Banking institutions continuously upgrade their technological infrastructure by integrating the latest developments and trends in the industry. One of those is specific software that analyzes the executed transactions and learns to detect fraud in real-time. The larger the number of transactions analyzed – the higher the accuracy of the final result.
Security continues to be a priority for digital payments users worldwide. Moreover, it would be difficult to imagine any progress in the industry without the coverage of such basic need as safety of performed operations. Banks and companies recently began to leverage the opportunities created by vast amounts of processed data through the employment of machine learning algorithms. When a suspicious transaction is detected by the latter, the bank and the customer receive a cautionary message that helps prevent major losses.
Trend #4: Contactless payments
This is another payment method admired by millions of users across the globe. Contactless payments eliminate the need for physically insert a card into a payment terminal, making the process faster, more convenient and secure. The customer just has to wave his smartphone or card across the reader and the transaction is complete.
The encrypted data is instantly transferred to the POS device, eliminating the need for inserting the PIN. This is made possible with the NFC (near-field-communication) technology that has revolutionized the payment process. 2020 is expected to bring dramatic growth to the number of places where it is possible to pay contactless.
Trend #5: Mobile wallets
A RetailDive report suggests that around 2.1 billion customers used mobile wallets in 2019, and we will certainly see it increase in 2020. Mobile wallets are simply a digital version of your regular wallet and allows you to send, receive and store money. Besides, users are offered the possibilities to pay bills, buy tickets etc.
There are numerous e-wallets out there, made by small and big companies. Regardless of the issuer, the wallets are all brand and company specific, and were created to deliver fast and simple payment services with no cash involved.