Payment processing has taken great strides over the years. Today, there are various payment trends due to constant technological advancements. The payment processing schemes greatly evolved with new features. If you’re running a business, keeping up with the current payment trends is crucial to ensure the best customer experience and to maintain a competitive edge in a highly saturated industry.
Due to the various payment options available nowadays, choosing which one to use can be challenging. As more things become digital, payment methods are dominating the payment market because of ongoing innovation and security safeguards that simplify consumers’ in-store and online shopping.
Here are some digital payment trends worth keeping in mind in 2022.
1. Cashless Payment Options
If you’re making an effort to keep up with the current payment trends, you might already be familiar with cashless payments. Some widely used cashless payment methods include debit and credit, Automated Clearing House (ACH) transfers, and eCommerce transactions. As one of the convenient payment modes, cashless transactions will continue to evolve and eventually become one of the preferred payment modes in various industries. An example is the use of multi-currency corporate cards, which serves as a convenient mode of payment. Most give consumers the option of paying in multiple currencies as long as Visa is accepted.
2. Contactless Credit Cards That Offer Tap-To-Pay Convenience
Over the years, many are turning to contactless credit cards for convenience and a safe payment solution. An advantage of this payment method is the better security level and processing with end-to-end encryption.
Millions of contactless credit cards are available, and it’s likely to be a popular payment method. Most major card issuers are shifting to this approach, even replacement cards. Most providers have already shifted to contactless technology.
Accepting contactless credit cards along with mobile wallets as payment methods ensures your business will offer convenience. Remember that most consumers nowadays are turning to contactless credit cards to enjoy seamless and convenient transactions at all times.
3. Peer-To-Peer (P2P) Payments
The majority of businesses offer consumers a variety of payment options to use, including peer-to-peer (P2P) payments. In this payment method, users can transfer money from linked bank accounts or debit and credit cards to another user.
Although the payment method is preferred to transfer money from one person to another, some businesses often adopt it to provide a convenient customer experience. However, not all businesses can take advantage of this payment method.
4. Mobile Wallets
A mobile wallet is essentially a mobile application that functions in the same manner as an actual wallet. Depending on your mobile wallet application, most feature an array of functions such as sending, storing and receiving money. Some even have very useful features that allow you to make purchases, pay bills, and earn rewards, to name a few.
In recent years, cryptocurrency has gained popularity not just in the world of trading, and many jumped onto the bandwagon to take advantage of what more it can offer, including its potential as a payment option.
Using cryptocurrency as a form of payment is gaining popularity, and some consider it a reason to invest in the cryptocurrency market. It’s crucial to keep in mind the highly volatile nature of cryptocurrencies, but most see its investment potential. Today, some major companies are already accepting cryptocurrency payments. Among the digital payment trends, it’s worth keeping an eye on as it steadily becomes mainstream.
6. Biometric Authentication
In 2022, one of the current payment trends is no other than biometric authentication. Generally, biometric authentication works as a verification method that requires the biological features of an individual. The commonly used verification methods include facial recognition, fingerprint scanners, and iris recognition, to name a few.
As a way to deal with fraud and identity issues, biometric authentication will serve as a secure and reliable option for digital payments. The payment trend ensures high accuracy, efficiency, and security. Overall, biometric authentication is a secure method as it requires the unique characteristics of an individual while also an advantage if you want to establish client trust and loyalty.
Digital payment methods are going to become the mainstay in the coming years. As payment methods are steadily shifting to digital methods, moving along with the trend is something to consider if you want your business to maintain a competitive edge. Depending on the specific requirements of your business, adopting these latest payment trends will help streamline operations and ensure a good customer experience.