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In both the iOS and Android ecosystems, users can attach their cards to Apple Pay or Google Pay, and then they can use their phone and account to make payments both physically and online.
Fremont, CA: Financial industry is rapidly evolving with the emergence of cutting-edge technologies. In the payment sector of this industry has gone through several dynamic transformations over the past few decades. As payment continues to evolve, more industries look for ways to monetize, and companies find new ways to optimize their software or customer experience through payments.
Let us look at some major trends in payments in 2020:
The Rise of Contactless Payments
The burgeoning trend of contactless payments will continue to be more popular among people in 2020. Smartphone payments pioneered by Chinese conglomerate Ant Financial are expanding their business in the west. While the payment system in China centers around QR codes, other methods are also becoming gradually popular.
Non-card payments through NFC (near-field communication) will continue to grow. Customers have now switched to e-wallets, linking them to their bank accounts and payment cards. E-wallets allow them to pay for services both online and in the physical world. All of these services share one common goal of providing consumers with faster and more secure payments.
Open Banking requires banks to share their financial data with third parties under standardized protocols. In return, both banks and fintech firms can re-design and rebuild payments. As payments become quicker, more efficient, and secure, a couple of promising trends begin to emerge. Banks and other payment service providers (PSPs) can get rid of their outdated proprietary systems for RESTful APIs. Since APIs use the same syntax, industry-wide interconnectivity is becoming effortless. As a result, straight-through processing (STP) rates increase, empowering back-office employees to focus on process improvement instead of reconciliation.
Tech Giants Stepping into the Payment Sector
Traditional financial institutions aren’t the only ones diving into the payments industry. Tech giants Apple, Google, Facebook, and Amazon all recently indicated to be more active in this sector. In both the iOS and Android ecosystems, users can attach their cards to Apple Pay or Google Pay, and then they can use their phone and account to make payments both physically and online.
See also: Top Fintech Solution Companies