Worldwide, the way consumers shop, travel, socialize, work, access services, and perform various daily activities has transformed over the last few years. This change is revamping the payment industry in innumerable ways. The reconsideration of priorities is unavoidable following a transformational occurrence, and the payment industry is no exception.
As global economies recover from the coronavirus pandemic turmoil, consumers should brace themselves for a new phase of payment technology. In 2022, everybody must be prepared for sustainable growth courtesy of digital technology.
Different industries are experiencing different stages of technology development, but here is how technology is enhancing the payment industry in 2022.
Tap-to-mobile and contactless payment technology continues to grow
Even in rural areas, customers are tapping their phones and cards more than ever at checkouts. This study from Visa shows that about 50% of customers feel safe when making contactless payments at retail stores.
When it comes to small businesses that haven’t deployed point-of-sale (POS) systems, the tap-to-mobile technology that lets customers send payments straight to the merchant’s phone via a mobile wallet or contactless card has grown significantly.
Increased use of embedded payments
Consumers love convenience shopping, and the high rise of omnichannel retail, delivery apps, and rideshare services can support this claim. This is why there is an increase in embedded payments, which are payments folded into a product or service.
Statista forecasts that the embedded finance industry will generate approximately $230 billion by 2025. The good news is that embedded payments are improving customers’ purchasing even outside the high-tech innovation industry.
Customers are paying via smart speakers
Most consumers use smart speakers and similar gadgets’ voice commands to send money and make payments. As more and more buyers continue to purchase via smart speakers, it’s projected there will be a rise in payments made via smart speakers.
Research shows that consumers are most calm using voice commands when making small payments, such as paying for public transport and groceries. Despite customers’ reluctance to use voice commands to make expensive purchases, most businesses are inclined towards voice payments due to sophisticated biometrics security.
Increased digital wallets use
Many years ago, leaving your house without a wallet was hard. Today, you can hardly find someone carrying a physical wallet, as most people with digital wallets rarely have physical wallets. You should also expect to find plenty of biometric authentication used to safeguard digital wallets.
Buy now pay later
This payment system became a hit globally during the COVID-19 pandemic, and it’s predicted to grow in 2022. The buy now pay later method benefitted hugely from the massive increase in e-commerce stores, and the present inflation levels will surely drive customers towards it. If you plan to deploy this model in your business, it helps to use this online invoice maker so that you can email your customers professional-looking invoices.
Mobile payments to take off in a big way
Did you know that there are more than 5 billion active mobile payment users globally? This number is projected to rise to over 8 billion in 2025, and the trend is being fueled by the ubiquity of smartphones and the rise of mobile commerce.
What’s more, mobile payments are becoming more popular as businesses look for ways to make it easier for customers to pay. In fact, many businesses are now offering mobile payment options such as Apple Pay, Google Pay, and Samsung Pay.
To sum up
In conclusion, as payments become essential revenue drivers and differentiators, they can no longer exist in the background or be regarded as an afterthought. For any business to be well-prepared for the future, it must include payment technology at the front and center of core business strategies.
In today’s unpredictable, fast-changing business environment, staying ahead of your competitors in payment technology is crucial for the business to prosper.
