The evolution of payment options has been pronounced lately, from simple cash and debit cards to contactless methods and decentralized cryptocurrencies.
The cryptocurrency market is particularly huge right now, with a total market cap value of $1.87 trillion as of February 14, 2022.
Outside of this market, collaboration will become crucial as the lines between new and traditional payment options continue to blur, with major mergers and acquisitions recently involving PayPal, Fiserv, First Data and iZettle. But what exactly does the future hold for payment methods in the marketplace?
The rise of artificial intelligence (AI)
Interestingly, the finance and payments markets were early adopters of AI technology, as a means of detecting fraud in transactions across a range of different platforms.
However, as AI technology has continued to evolve lately, it has also shifted more towards digital payments.
Specifically, AI is now being harnessed to create intuitive virtual assistants, which are being deployed by fintech startups to help customers regain (or maintain) their financial well-being.
For example, this technology can allow customers to manage their spending in real time while simultaneously reducing credit card debt, creating more informed tax decisions over time.
Introducing Transparent Payments
Ultimately, simple and transparent payment solutions are part of an accessible customer experience that helps brands maximize their net conversion rate.
At a fundamental level, it also allows merchants and businesses to keep customers engaged until they complete their purchase, with digital wallets now being widely used to avoid having to fill up long and time-consuming.
We also see open banking platforms evolving to change digital payments, especially as this market becomes increasingly competitive.
Thanks to open banking, customer data is freely shared between different operators and service providers, allowing individuals to access tailored and targeted offers to optimize their purchasing power over time.
Mobile points of sale
The term “mobile point of sale” (mPOS) refers to a mobile device (such as a smartphone or tablet) that serves as a cash register or traditional wireless point-of-sale terminal.
These tools are used by merchants to accept payments on the go, and there is no doubt that they will play an important role in the digital payments landscape of tomorrow.
It is sure to revolutionize the world of retail, with multiple mPOS devices eliminating the need for physical stores or dedicated checkout spaces, reducing business overhead and potentially creating more room for merchandise in physical stores. .
This trend is somewhat slow going, but it’s definitely one to watch in the months and years to come.