The world is rapidly digitizing, and the global economy is no exception. In less than 50 years, credit cards and digital wallets have replaced paper currency.
Customers’ day-to-day purchasing habits are rapidly evolving because of contemporary technology. Sending and receiving money has become easier, faster, and more secure because of the digitization of payments.
Payments will be even easier to make with these changes. However, considering the rapid nature of online payment changes, it is essential to remain current or risk being left behind by competitors. The online payment landscape in 2022 will be shaped by the following six transaction technology trends:
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1. B2B payment virtual card:
B2B payments are being importantly affected by the digitization of financial transactions. In the past ten years, digital business credit cards have made it possible to make immediate B2B payments.
This technology is being used by providers like Divvy to make transactions for their customers faster and safer. Users can manage their budgets thanks, for instance, to the real-time tracking and updating of financial records provided by Divvy technology. Single-use virtual cards are also being used by these forward-thinking brands to ensure that customer data is protected in the event of a third-party data breach.
2. Mobile wallet:
Physical wallets are rapidly being replaced by mobile wallets. In their day-to-day lives, 32% of mobile wallet users use multiple mobile wallets. This rate of growth is 11% higher than the previous year. Additionally, some millennials use as many as nine mobile wallets.
Because mobile wallets are so simple to use, both providers and customers are drawn to them. Mobile wallets make it simple to integrate corporate loyalty programs, coupons, and gift cards into transactions and provide direct consumer access.
3. Payment by phone:
The proliferation of mobile wallets and smartphones coincides with the rise of contactless payments. Compared to removing and inserting the card, moving the smartphone closer to the reader is much simpler.
Additionally, the COVID-19 pandemic has increased consumer and business hygiene awareness. Consumer contact with commonly used surfaces like card readers and pens is minimized when using contactless payments.
Lastly, contactless payments make your financial transactions more secure. Encrypted payment data is sent instantly across networks using contactless payments. Faster and safer than chip reading or PIN technology.
4. Platforms for messaging and payments:
Platforms for messaging are rapidly surpassing conventional email and SMS messages. Every day, billions of people use Slack, WeChat, WhatsApp, Facebook, and Instagram Messenger. Customers no longer must leave these platforms’ messaging apps to purchase because these platforms have integrated payments directly into their apps.
E-commerce and peer-to-peer financial transactions have been greatly impacted by the incorporation of payment methods into messaging platforms. Businesses and consumers alike will find it to be more user-friendly and convenient.
5. Cryptocurrencies and international trade:
Traditional financial transactions were controlled by national currencies and financial institutions. States no longer have control over economic transactions between people of different nationalities because of the rise of cryptocurrencies. On the blockchain, payments can be made almost immediately, providing anonymity and security.
6. Real-time payments:
The speed of financial transactions is being impacted by the rise of mobile wallets, cryptocurrencies, and contactless payments. Transferring funds between accounts used to take up to a week. Remittances are now instant thanks to advancements in payment technology.
Conclusion:
These six trends will have an important impact on both consumers and businesses in 2022, as the landscape of financial payments is rapidly shifting. Payments will be digitized in the future.