For the past decades, the way payments keep on changing rapidly compared to other areas of financial services. From cash to cashless, from card to cardless and now, paying using smartphone. It just keeps on evolving without any signs of slowing down.
Considering the emerging payment trends, we can expect that in the future, payment will be a diversified scene with a lot of options and methods. It will no longer bound to one-fits-all payment like it used to be.
What awaits us in the future?
- Cash is still being used
Cash, what awaits us in the future is cash. This is not a phrase to pull your leg but believe it or not, cash will stay as the omnipayment channel in the future but it may serve not as a primary payment method.
As tempting as its sounds, the death of cash is only a forecast. There is no assurance. In fact, people have been predicting this for nearly 60 years and yet, cash is still being used.
For thousands of years, physical money has been with us for a reason. It is easy to carry and it is widely accepted and essentially, cash is untraceable.
With the advances in technology, cash actually became more important than it was before. Imagine if for some god-forbid reason, the electronic system shuts down suddenly, cash is there to back it up. But, let’s hope that will not happen.
- Mobile payments are everywhere
The recent innovations in the payment industry have extended across the globe. Every day, a new transaction model continues to emerge and the one of the latest is mobile payment.
According to Statista, throughout the world, the number of mobile payment rose to $52.9 billion in 2010 and by 2019, it is expected to produce $1,080 billion U.S. Dollar. Another Statista statistic stated that by 2019, 63.4% of the world population will consist of mobile phone internet users.
This statistics are driven by global demographics. As part of the demographics, many millennials who are now holding mid-level positions in the workforce, have been at the forefront of mobile over a decade. They are continuing to grow and demanding exceptional digital payment experience on all platforms.
- Biometrics security takeover
From government organizations to private ones and institutional setups across the world, you will find marks of biometric presences. Its flexible characteristics allows biometric to be implemented across different industries wherever identification and authentication are needed. Keep in mind that biometrics disregard the type, shape, size or geographic location of the industry.
According to Mobey Forum, 22% banks in the world already offer biometric security while 65% are planning to offer the service in the near future. The number does not speak alone as a report published by Capgemini stated that, by 2020, biometrics will become an $11 billion market in banking and financial service, securing $5.6 trillion payments.
In other payment scenes, companies like Visa and Apple Pay already enrolled biometrics as their payment recognition. This positive signs of biometric growth indicate that it will have a firm place in the payment’s future.
- Internet of Things (IoT)
Imagine a world of 20 billion connected devices, all transmitting and receiving data. Sounds amazing right? Essentially, that is the Internet of Things (IoT), a collection of devices connected to each other, exchanging and receiving data.
Now, if you add payment to that imagination and you will get IoT payment integration. A payment feature that is executed via your everyday devices that has electronic chip in it.
You might be thinking this is a bit fast forward, but it is has begun. In the future, if your dishwasher, washing machine or even dryer are running out of detergent or softener, it could order and pay automatically on your behalf. The same if you want something from a TV show or advertisement, you can just order it real-time. When you are driving, you are running low on car fuel, you just simply go to a petrol station and pay the petrol via your car.
These smart devices will increasingly replace the conventional debit and credit card, making it smoother and easier to order products. This will be the future of payment, easy and convenience.