bankingciooutlook

Why Mobile Payments Need 5G?

By Banking CIO Outlook | Thursday, January 02, 2020

5G will take mobile payments to new heights by increasing the speed, versatility, and security of transactions, and ultimately making mobile banking truly ubiquitous.

FREMONT, CA: In today’s 4G world, tasks are done remotely because everything is connected. Fingerprints and faces are replacing passwords, and all of that is done with minimum connectivity available. Then, imagine the possibilities with the internet of things gaining momentum and, driven by fifth-generation mobile networks. These super-fast, super-efficient, high capacity networks are poised to improve how people connect machines and how machines connect with other devices. With this growing connectivity, 5G has the potential to change the world of mobile payments too.

Over the years, mobile payments and digital wallets have seen tremendous growth. This is due to the higher penetration of near-field communication technology. Mobile payments are not only accessible in urban areas where users can use it for daily transactions, but they are especially popular among the millennial generation. They have accepted mobile payment technology readily than the older generations. With 5G, bankers will come up with super-fast mobile payment options, ultra-low latency in transactions, and improved connectivity to the cloud. This is expected to nurture real-time transactions, and also help to deliver new and innovative ways to provide consumer-friendly payment services.

With 5G, speeding up data up to three times as compared to the current 4G network, the overall consumer transaction experience will improve, leading to more people relying on mobile payments. Facilitated by digital technology, businesses would be able to provide a smarter and more customized payment process to its consumers both online and in-person. Due to high-speed connections, consumers would also be able to browse through online categories before paying for them. 5G would also help banks combine use data and artificial intelligence in real-time to accelerate end-to-end experience.

To keep up with 5G, payment service providers will need to develop innovative solutions that will extend to more channels, including 5-enabled devices.

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