In the last two years, our habits as consumers have migrated in favor of digitization, for better or worse. Given this scenario, there were several trends that have succeeded and gained ground during 2020. The PaynoPain company has analyzed the five main trends in payment methods that marked our last years. We will discuss their impact briefly in this article.
eCommerce
Online sales have seen a boost during the last two years. You can purchase almost anything online these days as MarketBusinessTimes shows. Reports show an average growth of 55% in online purchases during the 2020 and 2022 periods. Fortunately, traditional businesses without an online presence have been digitized, thanks to innovative payment solutions to take advantage of the growth in demand and be able to keep up with the trends. The electronic giants experienced their moment of the greatest boom, and they keep on growing.
Cashless
According to the analyzed data, the main challenge has been to provide the tools to bring their products closer to those that were not digitized. In relation to this, the use of the payment links sent via email, SMS or WhatsApp (MoTo payments and pay by link), experienced a 150% increase during 2020 compared to the previous year, especially in local businesses. Since they allowed to dispense with cash and go through the store only to pick up the order; reducing the time of presence in the establishment, according to the company.
Contactless payments and wallets
In the transition to newer habits and hand in hand with cashless, the adoption of various forms of “contactless” payment has grown through credit or debit cards, key rings, smart cards or mobile phones. Cards, old acquaintances, were the most used, but mobile Payment methods from mobile phones or other devices such as wearables (watches or other accessories) became a very popular alternative. In the line of contactless payments, there has been a lot of growth in its own development, or through large providers, of solutions to offer the possibility of including virtual cards in the “wallets” to allow payment with the mobile or even the consecrated platform PayPal which is being more and more accepted as a standard payment method.
You can not only pay for goods but also for entertainment such as renting movies; buying video games, or placing a bet on an online casino. Now, sites like Asiabet, do not only offer the best welcome bonuses or free spins or provide thousands of games or sport betting. Nowadays, it’s also important to know how depositing and withdrawals work because of the location. For instance, Asiabet, provides a guide to know how to deposit money and which is the best payment method; given that you can pay with a credit/debit card or, in many countries, with cryptocurrencies.
Peer to peer
The percentage of implementation of instant payments between people (peer-to-peer)) reaches 88% of banks according to research. This is mainly due to the fact that many entities participate in payment solutions that allow direct wire transfers in just a few steps. By 2020 more than 13.6 million users embraced instant payment methods (more than double the number it had at the end of the previous year), with a growth rate of 20,100 daily registrations, as reported by banks.
Biometrics
Looking to the immediate future, the incorporation of methods related to biometrics, such as fingerprints; facial recognition, retinal scanners or voice recognition, seems imminent. This is mainly due to the recent application of the European Payment methods Services Directive or PSD2; which requires merchants to apply strong customer authentication (SCA) in electronic payments for their protection.
It is estimated that during 2022, and the following years; these new methods will continue to grow and adopt new formats until they are consolidated among a large part of the population. Given this, it is foreseeable that the use of cash continues to decline and mobile payments increase; both in-store and for mobile purchases. In relation to internet payments, the trend is towards payment initiation, which will become a new standard.
Last words on Payment methods
Cellphone users now more than ever feel comfortable with paying with their devices (smartwatches included) and this is because of the big efforts technological companies make to encourage this action. They keep creating even safer protocols to keep up the fight against hackers stealing your money or worse, your identity.
Of course, as with real money, you have to be careful. While the safety measures are good, common sense is key to avoiding getting scammed. We have all this technology in our hands, and it is now the best time to embrace it. It is great to be able to leave the house without a bulky wallet and store all of our credit cards and ID’s in our smartphones.
Thankfully, most physical stores are open to these technological advances and are keeping up with the trends. The combination of an online store, digital payment; and store pickup is a perfect match that will help you save precious time. You won’t have to wait in line anymore to get your coffee.