In 2018, we saw huge advances in technology, and payment processing methods were no exception. As consumers become more comfortable with alternative methods of payment, these options also gain popularity with businesses. There are some clear trends in the payment processing industry taking shape, and in order to stay relevant with consumers, businesses will have to adapt to these trends.
Here are five payment processing trends to keep an eye on in 2019:
1. Mobile Payments
The most prevalent trend in the industry is the emergence of in-store mobile payments. More and more businesses are offering mobile payment through a personalized app or e-transfer function. The speed and convenience of this type of payment no doubt plays a big role in its popularity. Experts project that mobile payments will overtake credit card payments by 2020.
2. Mobile Wallets
Mobile wallets are gaining rapid popularity. Once again, it’s all about speed and convenience. Paying through a mobile wallet is quicker than paying with a card or cash. All the consumer needs to do is touch their phone to a reader to complete a transaction. Despite early concerns, mobile wallets are actually more secure than cash or credit cards. Customer information is encrypted, and they must unlock their wallet using a fingerprint, retina scan, or passcode.
3. User Experience
Early banking and payment apps suffered from poor user experience. Now that alternative payment methods are trending, more emphasis is being placed on user experience than ever before. The whole idea behind these new forms of payment is convenience. In order for a payment method to be worthwhile for the consumer, the user experience must be flawless. As customers trend away from cash payments, businesses are paying more attention to the fluidity of their point-of-sale systems.
4. AI for Fraud Detection
Fraud has always been of major concern to financial institutions, businesses, and consumers alike. As payment processing systems become more sophisticated, so too have criminals. What this means is payment processing software developers have to build in ways to prevent fraud through their tools. The use of artificial intelligence to detect fraudulent transactions and shield consumers has become increasingly common in the industry. AI is able to spot and flag unusual activity almost instantaneously protecting businesses and consumers in the process.
5. Biometrics
Biometric authentication is projected to become the norm by 2021. Biometrics include fingerprint identification, retinal scans, and financial recognition. Several payment platforms already offer this technology, and others are expected to follow suit. The level of security offered by biometrics is more reliable and cost-effective for everybody involved in a transaction. Widespread adoption of this technology should go a long way towards making customers feel comfortable with alternative payment methods.
Keeping an eye on business and payment processing trends is important for any business owner. Knowing what technologies to adapt and when is essential if a business wants to stay relevant to its consumers. Alternative payment processing methods are undoubtedly the future, and offering different payment options will help businesses increase sales and improve customer satisfaction!
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