Technology has reinvented commerce. It changed what consumers expect to experience in physical retail and food service outlets. It opened the door to new ways of engaging with brands across the path to purchase. The result is a dramatic change in how payments products and services are being built, deployed and utilized. As part of this transformation a variety of trends are emerging that is reshaping the payments value chain. Five in particular stand out from the rest:
Open Payments and APIs
For many decades, payment services and products have been driven into the market almost exclusively by issuing and acquiring banks. Digital is reshaping this distribution model, with payments migrating into native apps, POS software like clover POS system and clover merchant services, wallets and other connected environments. This more complex partner ecosystem requires APIs and dexterity to ensure customers can be connected with the commerce experiences they value most.
While companies have been collecting zetabytes of data for years, the reality is that most struggle to make sense of it all. Artificial intelligence allows brands to better synthesize data and incorporate those learnings to improve the commerce experience. Due to technological advancement in last few years, now the confluence of three powerful drivers, including exponential data growth, more sophisticated distribution networks and smarter algorithms have pushed artificial intelligence to the centre stage.
Advanced Authentication Technologies
As threats, fraud and data breaches are on the rise, companies are investing in complex user authentication mechanisms like digital identity, cryptographic keys, biometrics and geo-location. Behavioural analytics, along with biometrics, are predicted to witness a strong growth in the financial industry in 2018. According to the study from CapGemini, we can soon expect to see multi-layered authentication techniques implemented into digital and mobile payment solutions.
Mobile payments have become immensely popular, with various platforms making money transfers very simple. More companies are jumping on the board and begging to offer financial solutions that allow people to pay for goods without having to wait a long period of time for money to transfer.
Today’s Teens Will Change Payments
Current teenagers born in the 21st century are the digital natives that expect immediate and personalised online and mobile experiences, shaping how they will use payments in future and by 2020 they will make up 40 per cent of all US consumers.
Bitcoins and Blockchain Technology
Bitcoins and blockchain technology have benefits that cannot be overlook even though many are doubtful about this technology. Bitcoins and the blockchain technology are one of the most promising payment trends to watch out in the future. This year, the financial industry is all set to move towards implementing blockchain technology for many purposes including trading functions and payment processing.
New Payment Forms Emerging
Digital commerce is no longer restricted to smartphones or computers. There are now a plenty of things, including connected devices, appliances, devices, fashion accessories, clothing and sensors, all with the potential to disrupt commerce and usher in new payment form factors.
Ultimately, with the spread of the internet of things, the future of payment technology will be more convenient that it is currently.