Payment Trends to Guarantee Seamless Customer Experience

Banking CIO Outlook | Thursday, July 21, 2022

Enabling merchants to better payment transactions with better functionality and convenience will help create customer loyalty and retention.

Fremont, CA: There has been a significant transformation in the payment space over the last decade and will change considerably in the coming years. Nowadays, payment trends are taking industries towards a more consumer-centric direction, emphasizing ways to make easy and convenient payments.

Here are six payment trends to ensure a seamless customer experience.

No Signature Required

The procedure of authorizing transactions with a signature has become outdated since the advancement and introduction of payment security technology such as EMV, tokenization, and artificial intelligence (AI) for payment data monitoring.

Security for Convenience

Payment security will be a top priority as payment trends lean towards consumer convenience. As a result, security is inserted in customer-facing technology at the merchant level and applied by payment companies and card brands to maintain data security.

Biometric Authentication

Employing fingerprints to unlock smartphones, authorize mobile banking transactions, and make mobile payments have been used for a few years. There will be more fingerprint acceptance and other biometric identification to ratify payments in more places, making transactions more accurate, secure, and helpful.

A Declining Percentage of Cash Payments

With cash transactions reducing globally, analysts expect that cash use will continue to decline in the next five years by reason of new payment options and digital commerce growth.

Invisible Payments

The Internet-of-Things (IoT) technology can offer an exact payment process. Like drivers with RFID sensors that enable them to pay their tolls with a card on file, shoppers can choose their products, walk out of the store and obtain a receipt on the app, email, or text.

Contactless Payments

Banks are distributing contactless payment cards with near-field communication (NFC) technology, allowing consumers to tap or wave their cards about a card reader to purchase a specified amount.

The contactless payment trend is anticipated to expand above contactless cards as merchants improve their payment hardware to satisfy this growing demand. This technology will allow merchants to accept payment with a contactless credit card and mobile wallets or payments using watches and wearables.

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