5 Top Trends Shaping the Future of Payments

This era has been completely devoted to enhancing and developing new technology. In order to save resources, especially post-COVID, humans have strived hard to find new and different ways to make life more convenient. In times like these, when people could not communicate, give, get, buy, or do anything at all without staying away, new ideas regarding payment methods were floated and implemented upon.

What new has been brought to light?

After a decade of changing payment method systems, the 21st century has solved many issues in this matter. Shop and pay have become a very simple method nowadays. Insights regarding payment were taken from experts around the world – North America, Asia, and Europe. After a thorough discussion, 5 top trends of future payments were brought to light and put forward for implementation.

Read: Accepting Cryptocurrency in Business Operations: Why it has Become a Need of the Hour?

Creating a competitive environment has helped merchants and issuers to flourish in this field. With the passage of time, the 5 top trends mentioned below have shaped the upcoming payment phases:

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1. e-Commerce

E-Commerce has grabbed the attention of many and is still among the widely used and important trends of future payments. Although it has been in the limelight for a while now, it has not lost its importance in the coming time. The European countries have an estimated average of 15% in online commerce in 2021, while Chine has more than half of its retail business online.

• Digital wallets

Digital wallets have generated a significant amount of coverage and discussion, especially since Google introduced their plans of Google wallet about ten years ago. It is very safe to say that banks have been in the back seat with digital wallets in the driver’s seat. By 2025, it has been expected to exceed 4.4 billion globally.

Read: What is the difference between a Bank and EMI?

• Digital currencies

Bitcoin gained momentum in the digital currency world for a while; however, it failed to reach the mainstream. It will not be wise to write off digital currency so early completely. Despite the fact that bitcoin has its weaknesses, it has proved to be of great importance to store value. Other emerging application areas are social tokens, and cryptocurrency has grabbed the attention of the audience.  

• No traditional cash-loving

Although the usage of cash had lessened before the pandemic, a major shift in user habits has been observed ever since the COVID pandemic has hit the world. Just like e-Commerce, mobile payments will be the new dominant trend as compared to digital payments.

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• Deferred payment

Deferred payment, also referred to as buy now pay later, has an instant growth across all the regions in the world. Alongside e-Commerce, deferred payment also experienced a 215% growth in the initial months of 2021. Buy now pay later can be simply defined as taking a mini-loan; you buy and then choose from a variety of repayment methods. Many challenges need to be faced with this method because of each solution. There is a variety of fee and installment rules, schedules and their duration, interest rates etc. At times, this option can be availed to get solutions interest-free.

The Final Verdict

The 5 top trends of the future of payments mentioned above are just among a few other existing trending methods. The current crisis has led to many new theoretical ideas that have yet to be worked upon.