Mobile payments have never been as critical as they are today. People are looking for contact-free interactions, especially as the ongoing pandemic is concerned. It is impossible to tell how long the pandemic will last or whether it will get better or worse. People are doing what they can to avoid direct contact due to this, which is where mobile payments come into play.
The coin shortage in the United States has also made mobile payments essential. People aren’t as willing to pay in cash, what with banks not taking in as many coins as they used to collect. It becomes harder for merchants to have the coins necessary for change, making mobile payments all the more valuable. There’s also the worry among people over where all that cash could have gone and if it could spread viruses.
These two factors will prompt mobile payments to become more prevalent throughout the United States and elsewhere. But there are many other points about mobile payment processing that you deserve to note if your business is trying to accept such payments.
Five Digital Payments Trends to Watch in 2022-2023
1.Smart Speaker Payments
People are using smart speakers in their homes for many purposes, from playing music to controlling smart home devices. People can also link their smart speakers to payment methods, especially credit cards. The user can send money through a speaker to a retailer or other group when trying to pay for something.
The process for ordering a product through a smart speaker will vary by retailer and will entail specific codes and terms. But the convenience of ordering things through a smart speaker will be a part of mobile payment processing worth noting, especially as many companies introduce their own smart speaker models.
2.Mobile Wallet Growth
Customers don’t have to use physical credit cards to make mobile payments. They can use mobile wallets that utilize a different process. A mobile wallet lets the user move money from a bank account to that said wallet. The wallet will stay secure and hold the funds that can be transferred to a merchant at a point of sale or online.
This aspect of mobile payment processing will not entail any credit card or bank data between parties, thus making the mobile payment more secure. But you’d have to review your merchant services setup to ensure you can accept a mobile wallet transaction before you start.
2.No Signatures Necessary
Mobile payments will not require any signatures for operation. Considering how people might not want to handle stylus pens used by many others, this might be best. Mobile payments eliminate this annoyance, especially when the payment process entails more data going between parties.
The EMV standard uses a multi-part confirmation system that reviews the circuits inside a card to confirm someone’s identity. Artificial intelligence may also work in some payment methods to review the user’s spending habits and to confirm something that isn’t unusual. The AI setup can review anything unusual surrounding transactions you complete and if there is anything out of the ordinary when you’re trying to handle something.
The Internet of Things is a form of technology that entails smart devices linking to other physical devices and interacting with one another. You can expect the IoT to become a critical part of mobile payment processing in the future, since it provides a simplified approach to managing content.
An example of an IoT transaction would entail a customer linking a mobile device with a card on file to a retail location. The customer can collect the item that one wants and then leave the store. That client will receive a receipt through an email or text message. The IoT connection reviews the product the customer is taking and the payment method that one uses when entering and leaving the store.
4.The Rise of Cryptocurrency
There is the potential for people to accept cryptocurrency payments in the future. Bitcoin is the most prominent one that people can utilize, although Litecoin, Ethereum, and Bitcoin Cash have become noteworthy. The simplicity and security that comes with crypto transactions makes it a useful choice for future payments.
Merchant services can collect cryptocurrency payments when a user applies a mobile crypto wallet to the transaction. The user will move one’s current currency holding to the merchant. The effort is useful, but it only works if the merchant has a currency wallet and can accept the specific crypto token the customer wishes to use when handling funds.
Mobile payment processing will become essential in the future, especially as people start to use different payment methods. You can check on your current mobile payment plans when managing your work to see what is necessary for your business and how you can collect your payments.