Over the past few years, digital payments have evolved tremendously, raising the question: where are digital payment systems going to take us in the future? Gone are the days of the brick and mortar banking, where you had to stand in line for hours to get a simple task done. There is a growing change across the globe towards encouraging financial services to be adopted online.
Unsurprisingly, cards are still the preferred option for purchases worldwide, surpassing physical currency, but with the market expected to hit $1 trillion in 2020, mobile wallets are steadily gaining mass popularity. Although consumers save time and trouble with banking on-the-go, financial institutions can save money on physical infrastructure by digitizing parts of their operations and recruiting costs.
Over the years, banks have built a tech-oriented framework step by step, keeping pace with the times to improve customer service and experience. To present a more unified and comprehensive virtual banking experience, the opportunities offered by digital innovation have only helped consolidate these fragmented pieces of evolution to present a more unified and comprehensive virtual banking experience.
There are four major shifts in the global technology landscape that have led to the digital wallet revolution-
Digital has become one of the most commonly used words these days. A cashless society can simply be described as an economic concept or a state in which all financial transactions take place instead of physical banknotes or coins by transferring digital information. E-money is safer than currency in this regard. Every transaction requires you to provide a personal identification number (PIN) for the payment to be completed. Electronic funds transfers can be more secure than cash or check transactions.
The electronic payment system has grown increasingly over the last decades due to the growing spread of internet-based banking and shopping. There are substantial benefits to electronic payment processing Right now, electronic or digital payments have one benefit that supersedes any other: they keep people safe, indoors, and away from unnecessary physical contact.
In today’s fast-paced retail environment, the need to meet and exceed customer expectations is key to staying relevant amongst your customer base. Being able to accept all forms and methods of payment can be the difference between a sale and a walk-out. Modern payment systems run on electronic transactions which are much quicker to reconcile, batch, and collect upon over cash-based systems. Possibly the biggest appeal to accepting online payments is that a business can open up shop to the whole world. As a merchant selling online, your offering is available to much more than just your own nationals
Cards are the most familiar type of electronic payment the world over, a card payment can be made to transfer money to purchase a service and/or products. Major credit & debit cards in all corners of the world include Visa, Mastercard, American Express, Discover, and Diners Club.
Bank transfer is a payment method that allows consumers to transfer money to a bank account around the world. The transfer of money from one bank account to another can be done in several ways. ACH transfers are one type of bank transfer payment specific to the U.S. Similar to direct deposit; money is electronically withdrawn from the shopper’s bank account, transferred to an ACH network, and then deposited into a merchant’s bank account. Bank transfers happen over the world and are referred to by different names.
online payments have become widely used due to increasing online trades. The e-wallet is currently one of the most used methods for online purchases. Customers mainly choose it because it is simple, fast, and safe. You can use the eWallet either by holding your phone near a special payment terminal in-store or by using the eWallet app for in-app or web purchases.
Because of COVID-19, we have seen remarkable disruptions in all aspects of life. It’s no different in the payments industry. The pandemic has accelerated our movement away from cash toward digital payments, and the payments modernization trend shows no signs of slowing down. With increasing pressure from incumbent and emerging competitors in the payments arena, banks understand that it’s time to step up their transformation. Customers have already migrated to digital, and the pandemic has only accelerated this trend. There is significant value to be unlocked by banks that take a holistic, coordinated, and strategic approach to modernize their entire payments architecture.