Change is constant
The finance world has been subject to dramatic changes over the last decade. The payments landscape, for instance, has become increasingly automated. For the most part, the world has completely moved away from the days of writing cheques and other traditional payment methods toward electronic alternatives.
ATMs for example, presented customers for the first time with the convenient option of ‘Any Time Money’ – entirely removing the hassle of queuing up in the bank to manually withdraw or deposit money from a service member.
This shift however, was only the start of many sweeping changes to follow. Since then, the world has been saturated by innovative payment solutions such as smart cards and mobile wallets. Thanks to chip readers and wireless pay, most of today’s payments take place in an instant.
What’s perhaps even more surprising, is that this is definitely not the end of the road. According to the majority of predictions, there are many more dramatic transformations on the horizon – affecting every pocket of the market, from voice commerce to transaction monitoring .
What does the future hold?
Gen Z will make up to 36% of the workforce by the end of 2020, and are likely to become one of the biggest targets for payment technology providers in the near future. Having grown up in an age where ease, speed and efficiency are priorities, it is likely that Gen Z consumers will push innovation in the payment space to escalate further, quicker to accommodate. Let’s run through some of the major trends anticipated to hit the payments industry over the next few years.
Mobile – In the coming years, mobile payment apps, APIs, open banking, and other such features are expected to improve considerably. Mobile wallets have already dramatically increased convenience and further changes along similar lines are anticipated. In fact, not far into the future, mobiles are likely to become their own payment and deposit terminals.
Social Commerce and Voice Commerce– Once the adoption of social commerce and voice commerce increases, it is possible that consumers will be able to pay using a chatbot on a social media site, or instantly using simply their voice.
User experience (UX) – The more the payment universe expands, the more competitive it gets. Some analysts believe that in this heightened environment, user experience will be the major differentiator for solution providers. As a result, it is probable that UX will improve considerably.
The IoT revolution – In the climate of rapidly changing technologies – the way consumers have chosen to use things has changed too. It will not be surprising if in the near future, we are able to make payments using everyday objects, such as a TV. The possibilities offered by the Internet of Things are endless. Once companies create technologies that can effectively integrate a secure payment system into things (a process which is reportedly already underway) – the implications for the payment space could be dramatic.
Maximum Security – Most consumers are aware and vigilant when it comes to their payment technology. As a result, security is unlikely to be put on the backburner. It is likely that while innovation will be important, this will be paired with an emphasis on high-quality security. New developments with a special focus on biometric authentication, integration of mobile wallets, use of Artificial Intelligence, and Machine Learning are anticipated.
Smooth payments – New payment technologies are already becoming increasingly effortless, unobtrusive, and under the control of the payee – a pattern which is only predicted to continue. As a result, a consumer’s ability to monitor their transactions will become smoother and more efficient. Any issues that arise will come to the surface quicker and as a result, be remedied sooner. It is even possible that transaction monitoring technology will be accelerated to the point that all problems will be able to be detected and prevented before they occur.
In short, the future of payments is shaping up to be exciting and vastly different from the landscape we operate in today. However, as we know