Six Payment Trends to Ensure Seamless Customer Experience

By: Banking CIO Outlook | Monday, October 26, 2020

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

Fremont, CA: There has been a major transformation in the payment space over the past decade and will continue to change in the coming years significantly. Today, payment trends are taking industries towards a more consumer-centric direction, emphasizing on ways to make easy and convenient payments.

Here are six payment trends to ensure seamless customer experience.

No Signature Required

The process of authorizing transactions with signature has become outdated since the advancement and introduction of payment security technology like EMV, tokenization, and artificial intelligence (AI) for payment data monitoring.

Security for Convenience

As payment trends lean towards consumer convenience, payment security will be a top priority. Security is embedded in customer-facing technology at the merchant level and implemented by payment companies and card brands to keep data secure.

Biometric Authentication

Using fingerprints to unlock smartphones, authorize mobile banking transactions, and make mobile payments have been in use for a few years. There will be more fingerprint adoption and other biometric identification to approve payments in more places, making transactions more accurate, secure, and useful.

A Declining Percentage of Cash Payments

With cash transactions decreasing globally, analysts anticipate that cash use will continue to decline in the next five years because of new payment options and digital commerce growth.

Invisible Payments

The Internet-of-Things (IoT) technology has the possibility to offer a smooth payment process. Like drivers with RFID sensors that can allow them to pay their tolls with a card on file, shoppers can select their products, walk out of the store and receive a receipt on the app, email, or text.

Contactless Payments

Banks are issuing contactless payment cards with near-field communication (NFC) technology, which will allow consumers to tap or wave their cards near a card reader to make purchases for a specified amount.

The contactless payment trend is predicted to expand beyond contactless cards as merchants upgrade their payment hardware to meet this growing demand. This technology will enable merchants to accept payment with a contactless credit card, accept mobile wallets or payment using watches and wearables.