The earliest form of payment used to be the barter system. We have undergone drastic changes since then, with technology continuously affecting the way we make payments. Technological advancements have influenced the current payment methods. According to a survey conducted in 2020, only 20% of people in the United States use cash for monetary exchange.
By enabling the digitization of payments, users have a better, easier and more convenient way of making their payments. There has been a massive amount of development in the short span of five years in digital payment methods. Here are some of the trends that you should watch out for in 2021.
Biometric authentication is a way of verifying that it is, in fact, you who is doing the payments. It is a trend that will quickly emerge during this year. It checks out the physical and structural characteristics of a person and includes a multitude of ways to do this such as facial recognition, fingerprint scanning, iris recognition and even vein mapping.
There have been many cases of identity fraud that can be countered with the use of biometric authentication. This is a highly secured method and even helps in building customer loyalty. According to biometricupdate.com, more than 2.5 million cards will be issued in the year 2021.
The shift from cards to codes
Bank accounts were recognized by certain random combinations of the unique digits present on them. However, there is a new technology being used that has introduced a more secure mechanism that is more computerized for payment. Every time a transaction takes place, this technology uses a different code.
These temporary codes help enhance security and show us a better way to manage bank accounts. Even in e-commerce, a good and secure platform is needed to make transactions that can be authenticated. Companies such as HPS payment solution are making leaps and bounds in regards to this area. It offers easy integration and even supports multiple and diverse payment methods.
Smart speaker payments
Smart speakers, also known as home assistants, give you the chance to give voice commands to a speaker. Many big companies such as Apple and Amazon have invested in this technology. Even though these were primitive in nature since they were just reduced to phone devices, with the help of automation, these have also started to go mainstream.
According to a survey conducted by Statista, at least 35% of people use their smart speakers in order to buy products or groceries. At least 27% even use it for making direct payments. There is a concern of security in such areas, but there is a bright future ahead for smart speaker payments. This also helps in making contactless payments, which is really important during times such as today. Coronavirus spreads through touch and contactless payments are a really crucial way of protecting yourself,
Digital payments are the future. Slowly and steadily, we will see payment methods continuously changing from cash to other methods such as mobile wallets and biometric authentication.
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