How Are Digital Payments Changing Consumer Behaviour?

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Since the stabilisation of digital payments, consumer behaviour has shifted more subtly.

As digital payments through online payment gateway and other methods have become more common, providers looking to expand or establish retail relationships can gain valuable insights into how customers use the service. Here are a few trends that may gain traction in the coming year.

Pay via Link
Payment link is a practical, secure, and adaptable automated payment system. E-commerce is driving the global trend of payment innovation and has seen impressive growth year after year. Integrating with an e-commerce platform can assist you in closing sales both online and offline.

Because it is always available on the merchant's mobile phone, link sharing simplifies accepting payments for businesses using Omnichannel platforms. Payment links allow for faster transaction rates, which improves the customer experience and increases sales.

QR code payment collection
For businesses that want to accept payments via QR code, the QR code is a popular payment method. Typically, there is either a single dominant payment ...
... platform or an agreement between two dominant platforms that allows for the use of QR codes.

Consumers no longer need to carry a credit or debit card or bank details; even if they do, there is no need to share any information, so that won't be a problem. QR codes are simple to use and ideal for quick payments anywhere and at any time.

QR codes are now widely used to increase consumer engagement and create better experiences. Consumers enjoy scanning QR codes because they are convenient, and they use them whenever and wherever they need to.

Coupons and reward loyalty
Consumers choose wallets based on the same criteria across all age groups: payments, loyalty/rewards integration, solutions offering a wide range of financial services, and app compatibility. There is a market opportunity for a financial service that offers loans, credit cards, and wealth management services to consumers.

It’s Lending time (BNPL)
The younger generation is pushing for online buy now, pay later (BNPL) payments. According to Gartner, the BNPL industry's transaction volume will exceed $680 billion by 2025. Because of the popularity of BNPL loans, traditional credit card companies have begun to offer instalment loans at the point of sale.

BNPL users are more likely to plan to increase their use than credit card users who prefer interest-free BNPL products. Furthermore, market growth indicates that BNPL users intend to use BNPL products for a longer period of time.

Paying via multiple channels is on the rise.
Payment trends are being driven by increased e-commerce payment options, but the prevalence of these options is also a driving factor. Consumers expect the same level of service whether they buy online or in person.
Consumers can make in-store or online purchases using mobile apps or an omnichannel retail experience, which will drive e-commerce payment growth.

Identification via biometrics
It is anticipated that biometric authentication will continue to spread in 2022. The biometric authentication process involves a person's biological and structural characteristics. To verify a person's identity, it uses fingerprint scanners, iris recognition, heartbeat analysis, vein mapping, and facial recognition.

Due to the rise in identity theft and fraud, more consumers will be able to use biometric authentication to verify, identify, and ensure the security of all digital payments starting next year.

The card-to-code transition
Bank accounts were to be identified on cards by a simple combination of unique digits. Nonetheless, RMV (Rupay, Mastercard, Visa) technology has gradually replaced these methods with more secure and computerised payment systems.

This example demonstrates how codes can influence how we manage bank accounts. RMV technology employs transactional codes that change with each transaction. Using quick codes significantly improves the security of bank accounts.

Furthermore, plastic cards may be phased out of the market by cutting-edge payment services that provide more convenient and seamless methods of transferring and storing money.

Mobile Point of Sale is becoming increasingly popular
POS (mobile point-of-sale) is a game-changing technology that eliminates the need for merchants to accept payments in-person. Accepting payments from customers through the best online payment gateway at various locations, such as concerts, trade shows, food trucks, and more, allows them to travel to different locations to sell their goods and services.
By replacing the central checkout area with sales staff equipped with mPOS devices, mPOS technology significantly improves the store's payment process's efficiency and flexibility. According to Business Insider, mPOS will grow at a 19% CAGR between 2020 and 2026.

Before the physical cash payment method transitions to a digital payment method in the coming years, many new trends will emerge.

Bottomline:
Many of these trends will have a significant impact on our future payment methods, and many have already played an important role in this process. But only time will tell how everything comes together.