Online Payment Trends to Watch Out for in 2022

Digitization has revolutionized the payment ecosystem and made it convenient, fast and accessible. With so many innovations making their way into this space, it is important to stay on top of the trends. From technology that adds a layer of security like biometric authentication to wearable payment devices that enable you to pay on the go, the applications are diverse! In this article, we take a closer look at the top trends that are brewing in the market for 2022 and beyond.

XanPay - Online Payment Trends to Watch Out for in 2022

The payment ecosystem and the way money is used have undergone several changes since the beginning of time. Digitization of payments was a revolutionary move in the history of payments with the goal of achieving a convenient, secure and easy payment method. Fast forward to today and we seem to have achieved it all! Online payment methods have witnessed massive development over the years and there will be even more advancements in the near future. Many small-scale and large-scale businesses have embraced digital payments to expand trade and create an impact on the global market. In these times, it is exciting to see what 2022 and beyond have in store for us. Let’s take a look! 


Table of Contents

 
1. Biometric Authentication

Biometric authentication includes things such as iris recognition, fingerprint scanning, heartbeat analysis and facial recognition etc. It is a unique way of ensuring security and safety in the online payment ecosystem. It facilitates building customer trust and loyalty and is a very secure technique. As identity theft and payment frauds are on the rise, biometric authentication is an excellent way of ensuring security and reliability for all digital payments and it is gaining momentum.


2. Buy Now, Pay Later

You must have heard about the popular Buy Now, Pay Later (BNPL) option in the eCommerce industry. It is a simple process that allows customers to pay instalments for free as an alternative to credit card payment methods which ultimately makes the transaction affordable for the users. This online payment trend is worth watching out for and helps customers with faster checkout. BNPL was popular during the pandemic and was also used the most during that time.

 

3. Mobile Point of Sale

Mobile point of sale (mPOS) is a game-changing technology that frees all merchants from in-store payments and bricks and mortar locations. It enables businesses to go to various places like trade shows, concerts, and other places where they can accept payments from their customers in a hassle-free manner. This, in turn, gives the business a chance to increase its revenues by accepting payments from a wider range of customers in different locations. Moreover, the mPOS technology also streamlines the payment process of a store and makes it flexible by replacing the central checkout area with devices that are mPOS equipped.

4. Neo Banking

Neobanks are financial institutions that give a cheaper alternative to traditional banks to their customers. Think of it as a digital bank without any physical branch, offering services that traditional banks don’t and doing it very efficiently. They leverage artificial intelligence and offer personalized services for customers while reducing operating costs.

Neobanking is one of the innovative technologies like machine learning and artificial intelligence and makes online payments more enjoyable and convenient at the same time. However, there is some resistance to change among traditional players which puts them at odds with digitization.

The rise of neobanking is also because of a variety of factors that include sporadic incomes, millennial adoption, earning from medium enterprises and increased consumerism. Investors, corporates and venture capitalists have been attracted to neobanks due to their successful business models as well as high adoption rates.

5. Wearable Payment Devices

Wearable payment devices are defined as devices that can be worn or attached to the body to issue payments. A good example is a smartwatch that is liked to digital wallets such as Samsung Pay and Apple Pay. If the Point of Sale (POS) system accepts contactless payments, then you can very well take wearable payments as a vendor. The popularity of wearable payment technology is increasing due to factors such as consumers increasingly getting accustomed to making contactless payments.

Moreover, post-pandemic, customers also favour no-contact payment methods thus increasing the demand for wearable payment devices. Consumers prioritize speed when it comes to making payments which makes rendering wearables a great option. Also, it is one of the secure methods for customers to purchase services and products. The technology is integrated into their wristbands, smartwatches or smart rings. It is a great, modern way of ensuring error-free and secure payments.

6. Digital Wallets

Users find it very easy to complete purchases online by storing the payment information for a variety of payment methods. Digital wallets are backed by Near Field Communication (NFC) technology which enables devices in close proximity to share data and communicate with each other. Digital wallets do not need a physical bank account and store all information compactly and securely. As we move towards cashless and contactless payments, digital wallets are becoming highly popular.

7. Artificial Intelligence and Machine Learning

Security is of utmost importance when it comes to online payment transactions. Many financial platforms are leveraging AI/ML technology for controlling digital malpractices seamlessly. AI and ML-based applications are very effective and help in reducing payment fraud as it is able to understand the trend-based insights and then scale up as per requirements.

For instance, when you receive a text from your bank enquiring whether you made a certain transaction, it alarms you and the bank to avoid a significant mishap. Texts like these are sent by machine learning applications to steer clear of online fraud. Some financial institutes like Bank of America also have a chatbot that informs users about customer service, tips on saving money and balance information etc.

 
Stay on top of the trend With XanPay

With a host of trends mentioned above, online payment is the future of financial transactions globally. From biometric authentication and neo banking to wearable payment devices, the year 2022 has witnessed innovation in these online payment trends. The fintech industry is evolving with the changing needs of the e-commerce industry and with the help of modern technology, merchants can generate revenues while delivering customer satisfaction at each phase of the transaction.

With the changing payment landscape, alternative payment methods are gradually becoming popular. If you would like to stay on top of the trend and add an alternative payment method to your checkout then XanPay is a great option to consider! To learn more about our services, visit our website.

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