Published January 30 2023 • 2 MIN READ
Digital Payment Trends Shaping the Payment Industry in 2023
Let's catch up on the digital payment industry evolving at a dizzying pace!!!
Are we catching up? or is it catching up on us? But whatever it is, the digital payment market is one of the world's most dynamic and fast-paced industries. We are using these digital payment solutions to pay for goods and services or even to send each other money, but what we don't realize is how much these digital payments could change in the coming years.
And here are our takes on the digital payment trends shaping the payment industry in 2023.
Biometric authentication for security purposes
Biometric authentication has been around for a while and will become more common in digital payments in the coming years, particularly for online payments. The increase in fraud and security fragmentation is leading more companies to adapt and use biometric authentication. The solutions offered by the fintech industry are changing the banking industry. It also contributes to the development of a top-notch, secure, and safe digital payment system.
Smartphones are becoming POS terminals for payment
This is an exciting era for those interested in new payment technologies. As the name suggests, this technology transforms the consumer's smartphone or tablet into a contactless point of sale (POS) terminal capable of accepting payments from contactless cards, bank accounts, or mobile wallets anywhere, at any time.
Integration of data analytics and AI in payment fraud prevention
One of the most critical and pressing issues for any bank, financial institution, or even consumer is the detection of fraud and financial crimes. The integration of data analytics and AI assistance will prevent customers from being cheated out of their hard-earned money. This lowers the costs and expenses associated with fraud prevention, as well as increases the confidence and trust of customers, employees, and shareholders in their products or services.
Growing Adoption of Contactless Payments
Contactless payments, such as virtual cards, QR codes, and wallets, have quickly become the preferred method of digital payment and are evolving faster than any other industry in the digital payment space. Customers simply wave their smartphones near the point of sale to complete a transaction. This allows users to go shopping, pay for utilities, make quick payments directly from their phones, and manage their financial accounts.
Broadening application of blockchain technology
Blockchain technology has the potential to revolutionize the way we pay for things, but it's not just about making payments; it's also about changing the way we think about money. This rapidly evolving field works with a decentralized, digital ledger that allows transactions to be processed and stored without the need for a centralized banking authority. The resources invested in developing blockchain technology have grown significantly in the past few years, but whether and how blockchain protocols can interact with the current economic environment will ultimately determine the technology's success.
The future of payments is bright! We're excited about all the new technologies being developed and upgraded to meet the digital world and change how we interact with money.
We hope you've enjoyed our take on the digital payment landscape in 2023. We'll be back next year with another one about how the industry will evolve in 2024, so stay tuned!