The way we pay for things has certainly changed since the dawn of time. It used to be that humans traded resources, such as salt etc. Then came the introduction of physical money - coins and then paper money… and now things have gone really cutting edge, where transactions are made with no physical exchanges at all, all done online from one account to another. You can earn your wage, pay for your holiday and not physically see any money at all, apart from numbers on your screen. So let’s take a look at the 9 digital payment trends of 2023.
Biometric authentication is a security method that uses the unique physical (or sometimes behavioural) characteristics of users to verify their identities. As such, it relies on biometric data such as fingerprints, facial features, iris patterns, voiceprints, or even behavioural traits like typing patterns etc. These systems then capture and compare this data to your stored templates and can be used to grant access or verify your identity. It’s like in the movies, where safe rooms will only allow people in after scanning their iris, for example. And, in the real world, it’s something we use every day when we open our phones either with fingerprints or facial recognition.
This offers a more secure and convenient way to pay compared to traditional methods like passwords or PINs.
When cards were first introduced, and you wanted to make a card payment, you would need to make a copy of the card and get it signed for authorisation. But how those days have changed!
EMV (Europay, Mastercard, and Visa) payment technology is now a global standard for secure digital transactions and involves the use of chip-enabled payment cards and terminals that provide much better security compared to the traditional magnetic stripe cards that used to be the way to pay.
These days, EMV cards contain a microchip that generates unique transaction codes for each payment - which makes it practically impossible to replicate. And, when used with EMV-compliant terminals, these cards require authentication through the chip, which reduces the risk of card fraud even more.
Mobile Point of Sale
Mobile Point of Sale (mPOS) is simply the use of mobile devices, such as smartphones or tablets, as portable payment terminals. With mPOS systems, merchants - such as shops and casinos can accept payments from customers anywhere, without the need for fixed checkout counters. These devices are equipped with card readers or NFC (Near Field Communication) technology to ensure credit card, debit card, or contactless payments are processed securely. mPOS is super flexible, making it a popular way to pay by small businesses and market stalls etc.
eWallets, or electronic wallets such as PayPal, Skrill and Neteller are digital platforms where you can store, manage, and transact your money electronically. These are super safe and convenient - and are ideal for pursuits such as online gambling, with the number of casinos that accept PayPal for deposits growing all the time. They offer a convenient and secure way to make payments using various methods such as credit cards, debit cards, bank transfers, and even cryptocurrencies without needing to enter your financial information online.
Smart Speaker Payments
These allow you to make financial transactions using your voice commands through smart speakers, such as Amazon Echo or Google Home. You can link your payment accounts to your smart speaker and perform all sorts of actions like checking your account balances, making purchases, or sending money… simply by speaking commands to the device.
Contactless payments - tap-and-go or near-field communication (NFC) payments are the types of payments we are most familiar with. You simply need to place your compatible contactless card, smartphone, or wearable device next to a contactless payment terminal and it’s done. These transactions are completed by radio frequency identification (RFID) or NFC technology, making them completely secure.
Contactless payments are quick and convenient… just make sure you don’t lose your card.
Mobile wallets, or digital wallets as we often call them, are generally apps you can install on your smartphone or other mobile devices that will allow you to store and spend your money safely and securely.
These are handy because you can use them to make various types of transactions - online or in-store. You can also use them to transfer money to others and store loyalty cards and coupons. Like eWallets, they generally support all sorts of payment methods - credit cards, debit cards and even mobile payment platforms like Apple Pay or Google Pay.
Buy Now Pay Later - BNPL
Buy Now Pay Later (BNPL) is a payment option that will let you make a purchase and either pay for it at a later date or split it into instalments (usually three). With BNPL services, you can buy a product or service immediately without paying the full amount upfront. You have the option of deciding whether you want to pay for it later (normally after 30 days), or whether you want to break it down into three separate payments over three months - moreover, as long as you pay up in time, there is usually no interest attached as well, making it even more convenient. One of the most popular examples of this right now is Klarna.
AI Payment Solutions
This is simply the integration of AI technology in the payment industry. These use machine learning algorithms and data analysis to make payment processing safer and more secure - such as fraud detection, risk assessment, customer experience, and getting users more personalised offers.
There are so many options to pay now, both online and in person - and they are getting more hi-tech all the time.