Home Banking How Technology Innovation Impacts the Future of The Payment Industry

How Technology Innovation Impacts the Future of The Payment Industry

by Ryan North
Future Payment Systems

Technology innovation in modern times is driven by demand. Specifically, through the pursuit of addressing the needs of small businesses, technology developers are getting more and more demand-oriented. Anyway, the demand is indeed consistent in modern times, which makes the technology developers focus on innovation; rather than just productivity.

Future Payment Systems

The payment industry can be a great example in this context. Small businesses have turned out to be the most favored sectors at present for the payment industry. Digital banking started the revolution with small businesses, and the process seems to be unstoppable. Cryptocurrency provided an altogether fresh way of payments.

It is convenient with cryptocurrency for all without involving any third party for payments. The point to be noted here is that once small business groups adapt digital currencies, it won’t take much of the time to reach the regular customer or user level. Leading tech houses like Tesla, Microsoft, and MIT are making most of their dealings through cryptocurrencies.

Future Payment Systems is Coming all the Way

Upon observation, it can be realized that the prime aim behind the innovations in the payment industry is based on the idea that the entire thing should be kept as anonymous as possible. Cryptocurrencies like bitcoin can be the best example in this regard. Overall, the digital technology used for payment system-based products is aimed to address this aspect. At the same time, it keeps things secret about who made the transaction since it doesn’t involve any third party.

This refrains from the extra charges, which often go to the bank or the digital payment service provider. Needless to say, most of the digital service providers in the payment industry are enriching through this model. Above all, cryptocurrency assures safety in the best possible way. The most convenient example in this context would be blockchain technology. It is well known to all that blockchain technology at present seems quite impossible to be hacked.   

The Growing Emphasis Towards the Mode of Payment Involving no Contact

Digital wallets are considered the future of payments reaching the most basic level. Moreover, it is pretty imminent for digital wallets to be smarter. It is the reality of the hands-free payment model that was speculated long back. The most upgraded payment technology enables the user to pay bills without even taking out the phone from the pocket. Naturally, there is no need to wait for long hours in the queue simply to make payments.

Mode of Payment Involving no Contact

Innovation in technology is rampant as almost every leading tech house is busy with introducing something. Most recent in this context is the tech giant Google. Google’s digital wallet is said to be the most advanced and will be revolutionary for the payment industry. It can be claimed thus that the future payment technologies are all in some way or the other focussed around providing solutions, which would provide the utmost freedom for the user.

It is not just that Google is going to enjoy a rival free market; Amazon introduced its equivalent payment model, along with the prototype grocery store – ‘Amazon Go’ in the past year. It, too, was applauded and impressed those in search of innovations in payments

Modes of Payments Going to be Enhanced with Voice Command

It is incredible to see that future payment technologies are not confined within the banking and finance sector. The intention is to reach the level of very common users. Hence, priorities are being given to developing technologies that can be user-friendly. The idea of making payments through voice commands is a fine example in this regard.

Starting from the day of credit card innovation, the quest for simplifying things is very much on. As far as the idea of making payments through voice commands is concerned, though there are some safety aspects involved, it is certainly not too far from being a reality at the mainstream.

Impact of Artificial intelligence

Artificial intelligence payments are the other big things that are going to have a significant impact on the future. Specifically, it is expected to address the challenge of providing a safe ecosystem for users. The cases of fraud are going to be lowered in a noteworthy fashion through these technologies. The future of payment technology, whether the banking industry or the regular consumer segments, will have artificial intelligence as the most favored option to avoid fraud.

AI Payment

Amazon Alexa needs no introduction. It dragged attention from a user base of all groups by coming with a feature that enables one to make payment through a simple command. However, it, along with competitors like Siri and Google Assistant, is going to define the future of payment technology.

Going Beyond the Cryptocurrency and meeting the Small Business Groups

Innovations in the payment technology arena are hugely dependent upon the demands of the new payment service providers. The future of payment technology can be guessed to a great extent through these demands. And, the most prominent demand among these is to provide identification authenticating facilities. With cryptocurrency, safety is assured to a great extent.

Blockchain-based payment technology assures safety, but as it is known, cryptocurrency hides identification, which has been encouraging for illegal activities. To avoid the same, demand is growing more towards the development of technology that would authenticate identity. Things have become essential to move ahead of simply checking the consumer identification. Through better assurance regarding identification, or in other words safety, the future of payment technologies can be more profound at ground level.

Impact of Open Banking APIs

Financial sectors in great numbers are adhering to the open banking API. No doubt about the fact that Paypal and Visa are the most popular among them. Though European countries are said to be ahead of others on this matter, API technology is indeed expected to be equally prominent across all parts of the globe sooner. The significant role played by the APIs in the revolution of open banking is said to be the major factor behind the ecosystem that has been set. It won’t be wrong to claim that API technology provides the prime channel for facilitating business. 

Through the growing adaptation of APIs, financial institutions (specifically the banks) have been able to enlarge their primary service segments. It is also true that the threats of APIs for the financial institutions have been set through opening the path for the Fintech companies.

The prime threat is due to the speculation that the Fintech companies may make the most of the data to expand their own business or offering segments. Anyway, a balanced solution that can be favorable for all is pretty imminent in the payment technology arena. Powered by all these technologies, the payment delivery modes are expected to get more and more engaging and secure in upcoming days.

Growing Demand for Enhancing Consumer Experience

The future of payment technology is more reliant upon the consumer experience. All the innovations that are up in the pipeline to be executed are focussing on their abilities to enhance the consumer experience. Things have been encouraging through the growing acceptance of mobile payment.

It is significantly successful as small businesses are very much flexible with it. And the small businesses have accepted this as the customer base finds it user-friendly. Naturally, the aim is to come up with something that can be even swifter and more convenient. The impact of digital money trends has almost forced the technology developers to think about the solutions, as explained above.  

Impact of Geofencing

It won’t be surprising to witness more of future payment technologies being focussed around geofencing. The effort is very much on towards making the small business groups accepting or getting used to geo-location technologies. The best part about technology is that it is quite easy to be maintained and regulated.

Yes, indeed, the technology is still very much sophisticated in its way. The sophistication is said to be due to the safety features involved. However, one must also keep in mind that technology is being used predominantly among large business groups. Needless to say, large business groups want such high-end sophistication or safety features.

However, the impact of the success of these technologies is obvious to encourage several developers to find solutions for small business groups. And, this would make them put more emphasis on minimizing the sophistication level. After all, future payment technologies are considered highly essential to be all-encompassing to be successful. 

All the technologies discussed above have already had an impact on the payment industry. Moreover, the impact is expected to get stringent in the coming years. Apart from all these discussed above, virtual reality is expected to be at the core of many future payment technologies. Specifically, the e-commerce platform is going to be the biggest target of it. Amidst the whole range of technologies, the one which makes things simpler, safe, and swifter will be more successful.

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