Embracing the Future: The Soaring Adoption of Digital Wallets and Biometric Payments
Overview
Digital paymenttransactions have grown rapidly in emerging markets over the past two years as the pandemic has accelerated the transition to contactless payments and e-commerce. Real-time account-to-account transfers took off, e-wallets multiplied, and industry leaders forged new alliances to gain access to new technologies and expand their clientele.
Digital payment growth has been particularly rapid in Africa and Southeast Asia, where low banking penetration presents opportunity for payment service providers to access underserved markets and exploit untapped potential.
As a result, digital payment methods are best positioned to take off in these regions, and new breakthroughs may be on the horizon as well as possible monetization strategies for payment providers.
Evolution of Digital Wallets and Biometric Payment Usage
When Western Union introduced the electronic money transfer (EFT) in 1871, the history of electronic payments began. Since then, the concept of sending money to pay for goods and services without necessarily having to be there at the point of sale has captured people’s imaginations.
The growth of electronic payments has been fueled by technology. Nowadays, purchasing something is as simple as pressing a button on your smartphone. The effort to streamline payment processes has been fought for.
Here are a few recent tactics used by businesses to expand their commercial enterprises:
• RealNet, a new software as a service (SaaS) platform in the cloud from FIS, will enable account-to-account transactions for companies, consumers, and the government across real-time payment networks.
• Visa and Conferma pay has announced a strategic plan to launch Visa Commercial Pay, a suite of B2B payment solutions to help improve cashflow for business and eliminate outdated manual process.
Benefits of Digital Wallets and Biometric Payment Usage
Instant Payment– Electronic payments are much faster than traditional payment methods such as cash and checks. Online payments are not tied to time or place. User can easily make payments anytime, anywhere, anywhere in the world.
Higher payment security– Electronic payment systems offer several options for securing payments like B. Tokenization, encryption, SSL, etc. Card details can be saved, and transactions can be completed with one-time passwords, so customers don’t have to enter their card details every time.
Better customer Convenience– Electronic payments helps to provide customers with a convenient payment experience. By offering postpay functionality, customers can purchase goods on credit.
Challenges faced in Digital Wallets and Biometric Payment Usage
Innovative Trends inDigital Wallets and Biometric Payment Usage–
Smart Speaker Payments- Smart speakers or voice assistants has become quite mainstream among the majority of households. According to Statista, 82% of people have used voice assistant to get information, and 35% have purchased products through their voice assistant and smart speakers.
Overall, 30% of US users will start making online payments with smart speakers within the next 3-5 years.
AI-Based Wallet Solutions to Automate Routine Transactions- Artificial Intelligence has rapidly made its way to being one of the best-emerging technologies. AI chatbots is used in executing and automating basic transactions with customers’ approval.
Handle voice instructions and execute payments related to routine tasks such as number verification or ACH payment processing automatically.
Cryptocurrency Wallets- Cryptocurrencies and blockchain technology essentially eliminate the need for a third party in transactions, leading to more secure transactions as well as lower costs.
According to Statista, the number of cryptocurrency wallet solutions has increased dramatically since 2016, from 6.7 million to 42 million in 2019. As a result, companies and start-ups that have incorporated this technology are witnessing enormous benefits and will continue to reap significant benefits.
Growth in Digital Wallets and Biometric Payment Usage-
Conclusion
Digital wallets and biometric payment are the future. Over the next few years, payment methods will switch from physical cash to digital payment methods. Many new trends come and go before the transition is complete. These trends will play a key role in shaping the payment methods of the future.
It is a faster way to send or receive money or make payments in online and offline stores because it eliminates the need to enter the recipient’s bank details. Digital wallets are one of the most popular payment methods today due to their ease of use and wide range of applications.
Biometric technology has redefined the way an individual think about security. With a wide range of applications in the banking and finance sector, users will continue to enjoy top-notch security. In addition, biometric technology is continuing to be researched to provide even more secure solutions.
Author: Suryansh Verma