bankingciooutlook

Four Payment Trends Improving Customer Experience

Banking CIO Outlook | Monday, June 21, 2021

Cards that use near-field communication (NFC) technology will allow customers to make purchases up to a certain amount by just tapping or waving their cards near a card reader.

Fremont, CA: There have been significant changes in the payments arena during the last ten years, and there is no doubt that significant developments will continue as we enter a new decade. Payment trends for 2020 seem to be driving the industry in a more consumer-centric direction, with an emphasis on making payments as simple and convenient as possible. Here are four payment trends improving customer experience:

Biometric authentication

For some years, consumers have used fingerprints to unlock their cellphones, authenticate mobile banking transactions, and make mobile payments. Look for biometric identification such as fingerprints or other biometrics to approve charges in increasingly more places, making transactions more efficient, accurate, and safe.

Invisible payments

The Internet of Things (IoT) has the potential to build frictionless payment systems. Shoppers, such as those at Amazon Go stores, will be able to select their goods, walk out of the store, and receive a receipt on an app, by email, or text, similar to how automobiles with RFID sensors may avoid toll booths and pay their tolls with a card on file.

Contactless payments

Banks are launching new contactless payment cards. These cards use near-field communication (NFC) technology will allow customers to make purchases up to a certain amount by just tapping or waving their cards near a card reader.

The contactless payment trend is projected to grow beyond contactless cards as retailers upgrade their payment technology to match this demand. Merchants will be able to take mobile wallets like Apple Pay, Google Pay, and Samsung Pay and payment via watches, wearables, and fobs, using the same technology that allows them to accept contactless credit card payments.

No signature required

Signatures were no longer required for credit card transactions as of 2018. The method of authenticating transactions with a signature has almost become redundant, thanks to improvements in payment security technology such as EMV, tokenization, and artificial intelligence (AI) for payment data monitoring.

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