The way consumers make payments for purchasing products and services witnessed significant change in the last decade. Annual growth rate for digital transactions will be 12.8% from 2019 – 2023.
By 2023, the total amount transacted will reach a staggering $6,699,201 million. It isn’t much surprise why companies are offering their version of online payment services. The popularity of Apple Pay, Google Pay, PayPal, and Samsung Pay are examples of why organizations choose to invest in this domain.
Companies offering online payment services must be aware of the next course of action. They need to predict the direction at which the market is moving and take appropriate measures to provide the best solutions for customers.
Given below are three online payment trends which will remain a dominant force and drive innovation in 2020:
1. Generation Z driving demand for online payment services
In the future, the majority of the users of online payment services will be generation Z. As these age groups belong to a digital world, it is natural for them to use apps which make life convenient.
Think about it; they are born in a time where they can purchase anything and everything from e-commerce stores. Majority of the people in this age group prefer to use mobile banking services, over traditional methods. Dubbed as the smartphone generation, they will always prefer tasks they can complete via devices.
2. Increase in focus on security
Security is going to be the number one concern, given the nature of online transactions. Cybercriminals are always on the lookout for new techniques, which assist them in stealing from consumers.
The number of card frauds and data skimming is on the rise, which is why companies which offer online payment services focus on security. For example, in 2017, synthetic credit card fraud caused losses worth $820 million in the United States alone. By 2020, this amount will reach a staggering $1.26 trillion.
One way companies are hoping to combat this problem is via geolocation data of their customers. With this type of information, organizations have a better understanding of whether the transaction is fraudulent or not.
Similarly, companies are embracing biometric authentication to make life harder for cybercriminals. Smartphones are coming with secure versions of fingerprint and facial recognition scanners. When compared to traditional techniques, biometric authentication holds the upper hand in terms of accuracy, security, and efficiency.
3. User experience is everything
The experience users have while using various online payment services, will determine the success of the platform. In a generation where people have short attention spans, ensuring all transactions take place quickly is the norm.
For example, rather than having customers enter all their data to make a purchase, they can use their smartphones to scan QR codes. With this technique, they will only have to provide the necessary security information to complete the transaction, saving vast amounts of time.
Companies will have to understand the needs of the consumers and design services, which solve their pain points.
As the newer generations will account for a majority of consumers worldwide, online payment service providers have a choice. Follow the latest trends to be the top players in the market or fail to adapt and become obsolete!