Technology has penetrated several mainstream industries like never before. From healthcare to education to finance, media, and entertainment, the roots of technology are spreading like fire. No matter what business you are in, you will always try harder to keep up with the evolving world and that's when the smart use of these technological advancements comes to play. The following post is not so generic, in fact, as the title suggests it offers a comprehensive overview of payments technology. Where are we heading now and in the future?
However, before that let's take a bit of a detour and visit the past scenario. What was the situation back then?
Over a couple of decades, I am pretty sure you must have come across several changes in any and every sector and our financial matters are no longer an exception here. It was believed that the concept of money was developed by the ancient Greeks. And slowly the money was used all across the globe for trading purposes from different merchants within the same region as well as overseas. It would be fair to say that during those times cash was king. Even after a while credit-card payments did take off but somehow cash was quite popular across the globe.
Over the past 20 years, we all have witnessed some of the most drastic changes in the payment realm, of course, due to ever-evolving technological advancements from barter systems to coins, paper money, banks, exchange bills, cards, digital payments, and now cryptocurrencies. For example, several ATMs were created to take out cash, make numerous payments using credit and debit cards, and a lot more! In today's times, payment has become totally digital. The finance sector has transformed at a breathtaking speed, the only difference is that it's us who took the best of the old and got rid of the unnecessary aspects and added some more ingredients such as convenience, security, pace, evolving as per the individual's taste and whatnot!
So, what exactly are the payment trends now?
- Contactless payments – One of the most trending payment methods is contactless payments. Here there is no need to have physical contact between the device and the reader to make the payment. In fact, here your smartphones can be directly waved over the reader and you are done! In fact, several companies such as google, samsung, and apple have come up with amazing ways to conduct payments such as GooglePay, AmazonPay, ApplePay, SamsungPay, and the list goes on. Contactless payment is a huge concept in today's times.
- Omnichannel Commerce Payment Infrastructure – Another interesting payment trend to take into account is omnichannel commerce payment. Much like technological advancements even consumers are found evolving at a breathtaking speed. Concepts such as In-app payments and one-click commerce have gained quite a popularity in our world like never before. In fact, more and more merchants are found learning multiple channels and retail formats. And what are the perks here? Well, one can boost in-store sales efficiency, post-sales services, and customer satisfaction, and reduce the cases of fraud.
- Advanced security – The next amazing payment trend is advanced security. With the years passing by, security seems to have become a major concern for every sector. And in the payment sector, if the security is not up to the mark, everyone might have a lot to lose here. Scanning relevant frauds is possible when banks and other financial institutions ensure to incorporate different security ways such as by making use of technologies such as machine learning and artificial Intelligence.
And now, coming back to the post. It's time to focus on what Paytech is. Why is the concept so much in the hype and what you should be doing next?
Knowing all About PayTech
Since the dawn of the massive COVID pandemic, a severe decrease has been observed in offline transactions or cash transactions across the globe. No wonder, the payment industry seems to be going through a massive revolution. Now what is the term Paytech? Well, much like fintech, paytech can be intercepted as payments and Technology. Paytech is such a broader concept featuring the Internet of Things, and cryptocurrencies are some of its subsets. No wonder, paytech is the future of payments. Now the only difference between fintech and paytech is that paytech is more focused on payments and not all your finances.
It may quite interest you to know that over a span of a few years, global non-cash transactions seem to have increased by at least 14% which is 708.9 billion and counting. Have you met different players in the paytech realm?
- Electronic Media Institutions
- Card Network
- Acquiring and issuing different banks
- Payment Gateways
- Payment Service Providers
And in the upcoming years, you may expect an omnichannel experience with IoT devices, blockchain technology, P2P payments, Personalized solutions with Big Data, and a lot more! Fortunately, you will come across several reputable financial software development service providers who can assist well in developing finance software solutions that are favorable for you as well as your end users.
So, is Paytech for Good?
Making payments has become way easier than expected, all thanks to evolving technological advancements. With seamless payment, merchants can not just stay in relief but also can create stronger relationships with their end users. In today's times, there is no cookie-cutter or sure-shot way to receive money or transfer wages. Gone are the times when traditional approaches such as direct deposits or bank transfers were given importance. Conducting financial transactions online or via app-based banking has become quite a norm in 2023.
With the rise in Paytech, some notable shifts can be seen such as connected commerce. In today's times, both merchants and consumers are connected on a direct basis via easy and quick payment methods. Another transformation can be seen among those businesses which provide one-stop shops. In addition, open banking has become a real game changer these days. More and more industries are found adopting real-time payment rails (RTR) ensuring all PSPs offer the best possible services to the end users.
What about the embedded payments, you may ask? Well, slowly and steadily even they are finding scaling and becoming more invisible as non-financial service providers. Of course, one must never forget that crypto and digital currencies will ensure the creation of amazing and pretty exciting payment methods, especially in the upcoming years.
Last but certainly not least is the use of RTP, real-time payments. This seems to have changed the payment landscape in quite a huge manner. People no longer have to wait especially to receive their money because all it takes is a few seconds and everything is sorted. On and all, Paytech is moving at a pretty fanatic pace and so should we. Not utilizing the potential of all these digital assets means you might have a lot to lose. So, now do you agree that Paytech seems to have quite a sustainable future?
Well, I hope the following post was quite insightful for you. If yes, feel free to share among your peers and help us in spreading the word.