Digital payment seems omnipresent these days. With the rapid growth in online transactions in recent years, digital payment solutions have evolved with the help of cutting-edge technology. Digitization in payments promotes a secure, convenient, and fast way for people worldwide, and mobile wallet app development has made digitization more prevalent than ever.
In such a scenario, isn’t it interesting to look at what the year 2020 has brought for us? Let’s go through the top seven digital payment trends set to rule the world in the coming years.
Top Seven Digital Payment Trends to Watch in 2020
The digital payment solution drives the FinTech concept that arises by converging finance and technology. Here are seven trends to consider.
Advent of 5G and Hyperconnectivity
With the roll-out of 5G, lightning-fast connectivity will become a reality in the year 2020. Businesses will move forward to take advantage of this revolutionary technology. The digital payment solutions will certainly have the impact of 5G to make transactions even faster from anywhere. It is possible to make the most of AI, cloud, and IoT with the use of 5G for managing multiple transactions at once.
We cannot rule out the possibility of IoT-based micropayments in the future. The connected devices will be transformed into payment channels and 5G will enable them to act instantly. In other words, we are going to have a hyper-connected world soon thanks to 5G.
This new approach is based on sound waves. Most of the smartphones are compatible with sound waves, and users can transact through sound waves without using the Internet. Mobile wallet app development companies can integrate this feature for improved convenience. As per this method, sound waves carry out the encrypted data related to payment. The sound waves come from a terminal that carries data to the user’s smartphone.
Now, the smartphone converts the digital data into an analog signal that concludes the transaction. A simple and easy-to-use software solution can enable you to facilitate users with sound-based payments. There is no need for additional hardware in this technology.
Smart Speaker-based Payments
The trend of smart speakers is here to stay. Customers or users can give commands and get voice responses. Be it booking a cab, getting weather updates, or getting information about restaurants, smart speakers always remain handy. Software giants like Amazon, Google, and Apple are big players of smart players. Today, smart players offer a convenient way to bring automation at home. In the coming time, it is possible to pay through smart speakers. Security concerns keep users away from using speakers for online transactions, but with more safety features in the future, we will see the gradual rise in this trend.
Do you know that over 40 million cryptocurrency wallets are created to date? Though the price of bitcoins is fluctuating rapidly, the number of cryptocurrency wallet users keeps on increasing. The exponential growth in cryptocurrency-based transactions also impacts digital wallets. Over 2.1 billion users of a digital wallet solution provide great scope to the integration of cryptocurrency-based features.
With the advent of 5G and expansion of the digital wallet market, we will have more cryptocurrency wallets with user-friendly and advanced features for cryptocurrency-related transactions. The mobile wallet app development company can integrate such features and make the wallet ready for bitcoins, ethereum, and the like.
NFC (Near Field Communication)-based Payment
Contactless card transactions have started gaining ground in the UK and the rest of the world in the year 2019. Google Pay and Apple Pay are quite popular among people worldwide. The year 2020 will witness a steep rise in contactless payments powered by NFC technology. NFC is certainly better and more advanced than traditional PIN technology because NFC transfers the encrypted data to the POS device instantly as compared to the PIN-based system. Countries like China, the US, and the UK will remain the biggest users of this digital payment method.
It is predicted that 36% of all payments will be made through NFC-enabled contactless cards by 2027. It shows the growing importance of NFC-based payment globally.
It is one of the most popular trends of 2019, and this year, the trend is going to continue. It is expected that the total amount of remittance in the USA alone will increase by up to $143096 in the year 2023. Countries like the US, Canada, and Australia have witnessed record growth in global remittances. In the coming years, it is also expected that the remittances for the countries with low or middle income will also increase steadily.
Digital transformation has impacted the remittance industry as well. Developing countries like Mexico and the Philippines have also recorded growth in international remittances in the year 2019. This trend is going to continue over the period.
POS and eCommerce
Point-of-Sale (POS) machines and eCommerce growth are other strong drivers of digital payment. POS terminals can also contribute to the growth of eCommerce. Though the penetration of POS machines is less globally, we can expect that more retailers will embrace this approach in 2020.
Also, digital POS machines will replace the cash-on-delivery model with digital transactions. These machines will also accept all the credit or debit cards. In a way, POS will boost digital transactions and eCommerce sectors. NFC, RFID, and QR codes can also be used seamlessly with the help of digital POS machines.
Apart from these trends, the core focus of mobile wallet app development companies will remain on enhancing security by using the smartphone’s safety features. For example, biometric authentication using fingers or face recognition features can be prevalent. Online, mobile-based transactions are relatively secure but app developers must keep their app ready to withstand any attack from hackers.
In a nutshell, digital payment solutions will shape the future of transactions. Mobile wallets can drive digital payment, and in the coming years, we will witness the influence of futuristic technologies like AI, AR, and IoT in developing customized digital payment solutions. Let’s wait for the implementation of these seven trends in the thriving digital payment domain.