In the world of Fintech, technology plays a vital role. It is essential to keep an eye on payment trends to stay ahead of the curve. The digital payment trends have implications for more than just the financial industry. As the payments evolve, more industries find ways to monetize and companies find new ways to optimize their software or customer experience through payments. The big takeaway is the payments are becoming more ubiquitous and that they represent an enormous opportunity for businesses. Here are some of the biggest mobile payment solutions that you need to implement in your business in 2020.
- Seamless customer experience
Customer experience has been a key in digital payment solution. In fact, according to Accenture, “as the universal payment expands, the consumer experience is becoming a strong competitive differentiator.”
That experience is reaching a new level: unseen, frictionless payments. This is a big shift from the past. For a long time, there were only two primary payment experiences. You’ve either visited the store, or you’ve purchased online and entered your information on the checkout page. Now, with disappeared and embedded payments, those experiences are starting to blend.
Nowadays, in many platforms, the customers won’t even have to input their information to pay. It can be automatically loaded from peer to peer payment app. You can take the example of Uber. It keeps its entire experience focused on getting a ride and not paying for it. It keeps its customer’s information on the file and charging them automatically never using the word buy. Besides, many popular online subscription stores make the checkout almost disappear.
Software has also evolved to allow payments to be easily embedded in the application, enabling businesses that are less payment oriented to incorporate frictionless payment experiences for their customers. Mobile payments will be the digital payment trends in 2020 as things like APIs enable a seamless mobile payment experience. As customer experiences become more invisible payment criteria in 2020, we expect even more types of payment experiences in 2020.
- New devices adapting digital payments
We’ve mentioned that it’s getting easier to pay in different industries. And one of the major digital payment trends that results is payments that appear in the places you least expect. For example, intelligent cars are starting to include payments. Soon customers will be able to use saved payment methods for toll, gas or drive-through without having to lift a finger.
- Digital Transformation of small and medium scale businesses
Not only is the payment evolving – it’s also for all payment related activities. We see digitalization of things like invoices access and account receipts as the main payment trends of 2020. In fact, the world is on the verge of a B2B digital billing revolution: B2B organizations are trying to simplify how they bill and pay their customers. Much faster while reducing costs.
Digital invoicing is not new, but the B2B industry is lagging behind, especially with SMB. Therefore, paper checks and invoices represent the last bastion of the issue. In the mobile world, this is not the norm: paper billing systems are slower, more expensive, and more flawed. But this is changing, and the switch to digital invoicing will close in 2020. Clever payment partners are able to bridge that gap and allow businesses to digitize all aspects of their systems – for example, Bluesnap and Armetic have joined forces to provide full payment services and seamless invoices, accounts receivable and more on digital fintech solutions.
- Efficient cross border ecommerce
We’ve been seeing this pay trend for a few years now and it is more important that ever. The global ecommerce is on the rise and according to reports it is accounted as 1/6 global retail sales. The global ecommerce is expected to exceed brick-and-mortar retail by 2036 in US from foreign markets.
Of course, it is not always easy to become a global retailer with barriers such as the international payment process and fraud prevention. Most businesses still do not sell across borders, missing big opportunities. But recent research from some providers, including payment sources, tells a clear story: Businesses can gain access to these markets by establishing cross-border ecommerce alliances with modern payment providers.
- Smarter security
The threat of cybercrime and fraud is growing unexpectedly for retailers who accept digital payments. This is why digital businesses are increasingly moving to AI to help them make better decisions faster and better, especially when it comes to allowing good transactions and rejecting frauds. In fact, in 2020, AI will be required for a successful payment fraud prevention strategy. Older fraud detection systems that rely on rule-based investigation and basic monitoring machine learning are not advanced enough to meet current fraud efforts.
In contrast, AI-driven fraud prevention approaches meet the needs of large businesses. It can detect e-fraud by casting out inconsistencies and opening tricky patterns. At the same time, it helps businesses increase sales and revenue by lowering chargeback and manual review rates, enabling them to accept better orders and reduce fraudulent operating costs.
- Increase regulation
The rules will continue to grow, especially to protect consumers and local businesses – and affected organizations need to know how to adapt. Consumer protection has been on the rise for the last few years, and this payment trend will be fully impacted by 2020. Laws like GDPR and PSD 2 in the European Union or CCPA in California are on the horizon with data protection and payment suggestions. In 2020, they will be in full effect – and impact a wide range of industries. These rules ensure that they are clear when charged after a trial, resulting in lower chargebacks and increased consumer insights. This will benefit businesses and consumers alike, and is part of a larger conversation around security and trust.
- Simplify Payment stack
More businesses will be looking for ways to simplify their payment stack. They couldn’t have a payment method near their original gateway, so they added one; Again, none of the first two offered border support, so they added another, and so on. This quality of payment solutions inadvertently happens in the name of payment process improvement. However, instead of improving it, these businesses are now struggling to manage accounts, consolidation, payment data and payments – especially as they move beyond the solutions offered by those services.
Simplification is a payment trend that is growing fast. There are available all-in-one payment solutions that offer comprehensive and flexible coverage for any merchant offering their technology stack with very few complications. Next year, more merchants are taking advantage of these solutions to make their payments easier.
Conclusion
Digital payments are the future. In the years to come we will see the transition from physical cash to digital payment solution to payment methods. Before the end of the transition, many new trends will appear and disappear. These trends will play an important role in shaping our future payment methods. Many of the trends mentioned will also play a major role in that process. But time will tell how.
Author bio
Nikunj Gundaniya
Nikunj Gundaniya, Product manager Digipay.guru, one of the leading Digital Wallet App Development, which provides mobile finance application development services. He is a visionary leader whose flamboyant management style has given profitable results for the company. He believes in the mantra of giving 100% to his work.
