COVID-19 disrupted payment solutions around the world by shifting us away from cash. Now, cashless payment is virtually the new normal.
The future of quick, easy, reliable, and hassle-free payments is here. To that end, portable debit and credit card machines, POS systems, and portable payment terminals have already been adopted by many businesses in Canada. And while there is no crystal ball to tell us the future of payment solutions, there are unmistakable trends.
In this post, we discuss the future of digital payment, including a few predictions for new technologies, methods, and trends.
With digital payments accounting for a huge percentage of all transactions in the next five years, businesses of all sizes should stay ahead of changes in technology, consumer behaviour, and compliance requirements.
1. Electronic Online Payments
An electronic online payment system digitally moves money from one account to another. Online shopping has become increasingly popular in almost every industry in the last two years, as has the ease of electronic online transactions. Businesses can expect exponential growth in the next few years as customers transition from making in-store to online purchases.
Online payments like bank transfers and eChecks will be the new normal for the payment industry as well as for businesses in Canada and worldwide.
2. Mobile Wallets & Apps
Mobile wallets and payment apps have created a new way to interact with money by allowing users to transfer money from wearable devices or smartphones. This has made payments safer, quicker, and less cumbersome for both customers and businesses. Shoppers no longer need to retrieve a credit or debit card to make a payment in-store or online.
Tapping on the card saved in their smartphone or making a quick bank-to-bank transfer is all you need to shop for a service or product. This type of online payment became exponentially popular during the pandemic as it’s contactless and, hence, safe.
3. Mobile Point of Sale (mPOS) Technology
A mobile POS system allows any smartphone or portable device to accept payments. This is a very exciting payment trend that’s expected to grow because of its adaptability and flexibility. In the coming years, such technology will give customers of brick-and-mortar stores a very flexible payment option.
An mPOS system is best suited to merchants with stalls in trade shows, concerts, farmer’s markets, food trucks, and other events. This is because such devices allow owners to accept payments without a traditional Ethernet or Wi-Fi connection.
4. Biometric Verified Payments
Biometric verification is a strong two-factor payment authentication option. By implementing biometric verification, the cardholder will not be able to make a payment simply through a debit or credit card. Instead, a matching fingerprint or face scan is required. This technology reduces the opportunity for fraud, especially for stores that sell expensive goods like electronics, gemstones, or gold. It will also make payments a lot more secure and safe for both the business and the customer.
5. Blockchain Solutions
The advent of blockchain technology is creating an entirely new way to make payments. This technology helps complete a secure payment without the use of a third party. For example, cryptocurrencies are built on blockchain technologies. A blockchain is like an interconnected web of computers that record in real-time their own copies of everything that happens on the blockchain.
It is truly difficult to commit fraud with a blockchain as the fake transaction would be updated on each and every connected computer identically and simultaneously to avoid detection.
Enterprises in the digital payment sector are coming up with different ways to make payments safer, faster, and more hassle-free for both customers and businesses. The pandemic has made it clear to consumers that there are now newer and safer ways to shop. That’s why businesses of all sizes should accept these changes and implement a relevant payment solution to satisfy their customers. At Soft Tech Payment, you can get the most hassle-free, convenient, and affordable payment solutions for your small business. Get in touch with our team for a quote.