Top 8 Digital Payment Trends For 2022

By Author: Sahil Verma
Total Articles: 160
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Since the Stone Age, economics, money, and the way we make payments through online payment gateway have undergone numerous changes. In some ways, all of these are important indicators of our evolutionary progress as a species. Our primitive way of life was reflected in our primitive methods. Similarly, today's payment methods, which are powered by cutting-edge technology, demonstrate our technological achievements.

Payment digitization was a significant step toward the goal of achieving an easy, convenient, fast, and secure payment method. We may have accomplished everything. Digital payment methods have seen massive advancements in the last four to five years, and more changes are on the way in the near future.

It's exciting to see what 2022 has in store for us at this point. In this article, we'll take a close look at all of the digital payment trends that will be big in 2022.

Biometric authentication

Biometric authentication is a trend that will emerge quickly in 2022.

Biometric authentication is a method of verifying a person's biological and structural ...
... characteristics.Fingerprint scanners, facial recognition, iris recognition, heartbeat analysis, and vein mapping are among the verification methods available.

With the rise in identity theft and fraud, biometric authentication has the potential to become a reliable and secure option for all digital payments in 2022. Even the statistics point to the same conclusion.

Biometric authentication is a distinct and important payment method like the best online payment gateway India because it combines and provides accuracy, efficiency, and security in a single package. Because it involves an individual's unique characteristics, biometric authentication is a highly secure method. This factor also contributes to the development of customer loyalty and trust.

Gen Z: The tech-savvy generation

Before we go any further, let's define generation Z. Individuals born between 1999 and 2012 are referred to as members of 'Generation Z' or 'Gen Z.' Simply put, anyone aged 7 to 20 is part of the Gen Z generation, which is also known as the digital generation.

According to Forbes, Gen Z will account for approximately 31% of the global population in 2021. This population shift will have far-reaching consequences. This is due to the fact that this shift indicates that by 2021, the majority of the world's population will be a tech-savvy or tech-exposed generation.

This generation will be more reliant on cutting-edge, automated, faster, and more efficient technologies and services. As a result, demand for digital payment systems will skyrocket in the coming year.

From cards to codes

Initially, bank accounts were simply identified by random combinations of unique digits on the card. However, EMV technology has gradually gained traction and introduced customers to a more computerised and secure payment mechanism.

EMV technology is well-known for employing unique codes for each transaction. The use of temporary codes improves bank account security by leaps and bounds. This example demonstrates how codes can influence how we manage bank account systems.

Furthermore, the future of plastic cards will be overshadowed by cutting-edge payment services that provide more convenient and seamless methods of money transfer and storage.

Increasing Demand for Mobile Point of Sale

Mobile-point-of-sale (mPOS) is a game-changing technology that frees merchants from brick-and-mortar locations and in-store payments. It enables them to go to various locations such as concerts, trade shows, food trucks, and many others where they can accept payments from their customers seamlessly.

Not only that, but mPOS technology improves a store's payment process by making it more streamlined and flexible by replacing central checkout areas with sales staff equipped with mPOS devices.
Stats show that mPOS will be a popular digital payment technology in the future. According to Global Market Insights, mPOS will grow at a CAGR of 19% (approx.) between 2020 and 2026.

Smart speaker payments

Users of home assistants or smart speakers can issue voice commands to the speaker and receive a voice response in return. The user can use voice commands to get weather and traffic updates, among other things.
Many behemoths have invested in the production of smart speakers. In the year 2014, Amazon was the first to release its first smart speaker.

Amazon was joined by Google Home and Apple in 2016 and 2017, respectively.

Because they were limited to phone devices, the speakers that evolved from smart assistants were primitive in nature. However, as home automation became more popular, smart speakers became more popular as well.

Let's take a look at some statistics to get a better understanding of the smart speaker situation. Smart speakers are used by 35% of users to purchase products such as home care, groceries, and clothing.

Surprisingly, around 28% of people used smart speakers to send money or make direct payments through online payment gateway India. This is a small percentage because, for security reasons, fewer people prefer to make payments through smart speakers.

According to a press release, approximately 74 percent of users are concerned about security when making payments via voice assistants. Furthermore, they stated that they may cease making payments as a result of this concern.

Even after this, the future of smart speakers appears promising, with major players such as Amazon, Google, and Apple investing in the development of advanced smart speakers.

Furthermore, the statistics point to a promising future for smart speaker payments. According to BI, smart speaker usage will skyrocket from 18.4 million users in 2017 to a whopping 77.9 million users by 2022.

Top-rated security powered by AI and Machine Learning

When it comes to payments, security is the most important factor. People will always prefer to use a payment method that is highly secure. That is why payment technologies will be unable to progress unless they develop high-level security.

Every day, banks receive a large amount of customer information and payment data. Banks are now relying on machine learning to detect all potential threats in seconds.

Machine learning is the first step toward achieving artificial intelligence. Banks constantly feed their software with new and different transactions. The software learns to detect fraud transactions in real-time by analysing a limited set of transactions. As the software receives more transactions, it becomes more adept at detecting fraudulent transactions.

Contactless payments

Contactless payments are another payment method that will see rapid growth in 2022. Customers can use contactless payment by simply waving their smartphone across the reader, as the name implies. Waving is far faster and more convenient than inserting a card.

Contactless payments are also faster and more secure than PIN technology because they instantly transfer encrypted data to the point-of-sale device.

NFC (near-field communication) technology enables contactless payments. That is why they are also known as NFC payments. Many countries accept NFC payments.

Dominance of mobile wallets

According to one report, approximately 2.1 billion customers will use mobile wallets in 2019. This figure is expected to rise in 2020. A mobile wallet solution is simply a mobile application that attempts to mimic the functionality of a physical wallet. A mobile wallet allows you to send money to other users, receive money from other users, and store money within the wallet. Not only that, but a mobile wallet allows a user to pay utility bills, purchase tickets, receive rewards, and do a variety of other things.

The volume of mobile wallet transactions will increase to 274.4 billion (approx.). As a result, many major corporations, including Apple, Google, and Samsung, have begun to offer mobile wallets to facilitate this transaction. All of those wallets, however, are brand and company specific. More businesses will try to develop their own brand-specific wallets in the coming years.

With the help of a mobile wallet, businesses can easily assess their customers' usage. A mobile wallet involves a number of players. A mobile wallet, for example, is developed by one company, say Google. Then another company creates the loyalty cards and credit cards. There are also many merchants who accept the Google wallet.

In layman's terms, a mobile wallet is made up of various components that work together to provide simple, quick, and cashless payment services.

Conclusion

The future of payments is digital. Payment methods will shift from physical cash to digital payment methods in the coming years. Many new trends will emerge and disappear before the transition is complete. These trends will have a significant impact on how we pay in the future. Many of the previously mentioned trends will also play a significant role in this process. But only time will tell how it all plays out.