How technology is transforming payments

The financial services landscape is experiencing rapid transformations fuelled by customer expectations for speed and convenience. Today’s consumers are driving a surge in innovative payment methods, with a myriad of technologies emerging to meet their ever-evolving needs.

A spotlight from Scanbot SDK on the latest payment innovations uncovers how they are poised to influence business operations and reshape consumer behaviours.

Mobile payments have seen remarkable adoption rates in recent times, thanks to their user-friendly nature that allows transactions through smartphones. Renowned mobile wallets such as Apple Pay, Google Wallet, and Samsung Pay have empowered customers to make secure purchases effortlessly. The convenience of digital wallets essentially removes the necessity to carry cash, credit or debit cards, further expanding the functionalities of smartphones.

Research conducted by Worldpay reveals a four-fold increase in the popularity of digital wallets in the US over the last half a decade, making it the preferred payment method for approximately 12% of those surveyed. This rise in popularity correlates with Juniper Research’s projection that mobile wallet payments will exceed $10tn by 2025. Businesses are now obliged to keep pace with these payment technologies, ensuring not only suitable POS hardware but also staff trained in processing these transactions.

Contactless payments have also emerged as a staple in the current payment ecosystem, thanks to the introduction of NFC (Near Field Communication). This technology enables swift, secure transactions without any physical contact between the payment card or device and the terminal. This technology’s simplicity and hygiene-related benefits have been especially appealing in the post-pandemic world, driving major financial institutions to back its adoption. Juniper Research predicts that contactless payments will surge to around $1.64tn by 2025, more than tripling its value between 2020 and 2025.

Scanbot SDK next focused on the realm of wearable technology, payments through devices such as smartwatches and fitness trackers provide added convenience for active individuals and those who prefer carrying fewer items. NFC technology also powers these wearable payments, facilitating communication with the payment terminal.

In a bid to enhance security, convenience, and accessibility, biometric payments have gained momentum. With biometric data being unique and harder to duplicate, it provides a robust security layer, making it difficult for fraudulent transactions to occur. This technology also promises inclusivity, offering an alternative for individuals who may struggle with traditional payment methods due to disabilities. Though confidentiality and safety concerns persist, various companies are working to ensure the secure and efficient use of biometric systems.

The future of payment innovation promises a faster, safer, and more efficient global payments ecosystem. As these technologies mature and become widely adopted, they herald new possibilities and challenges for businesses and consumers. Despite hurdles such as security, privacy, and regulatory compliance, these groundbreaking payment innovations are set to reshape our financial future.

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