The concept of wealth in general and money, in particular, has undergone massive change since its inception. The ancient barter system that suited the needs of earlier civilizations is no longer valid in today’s day and age. With the advent of technology, a host of digital money transfer solutions has come.
Just as gold and silver coins have become outdated, physical money paves the way for digital wealth and cryptocurrencies. Our preferences and choices are akin to the progress of human society. So, here is why you should choose digital money and some of the trendiest digital money transfer solutions.
Why choose digital money?
The Covid 19 pandemic has completely changed the way we exchange money. Contactless payments became the safest way to send money with a deadly virus spreading like wildfire. Although contactless payments have been around for some time now, the pandemic made it essential.
The pandemic has somewhat subsided, and the world is opening up. We are returning to our pre-pandemic lives. However, digital payments are here to stay. Money transferring platforms are consistently trying to improve the safety and security of their services, which makes them efficient to use.
These platforms are also easy solutions to longer transactions that might take days to send money and take away the hassle of carrying a physical wallet and worrying about cash. They are at par with our digital lives.
Top digital payment trends of 2022
As digital payments become more convenient and popular, these have emerged as some of the top digital payment trends of 2022:
With online fraud and identity theft rising, digital payment platforms are upping their security game rapidly. Biometric authentication is a security measure to keep users safe from fraudsters and scammers. Biometric authentication uses biological features to verify their identity.
This includes fingerprint analysis, heartbeat monitoring, facial analysis, vein mapping, and iris recognition. Since biometric authentication uses a person’s unique features, it will become a trusted way to secure clients on online payment platforms in the coming months and years.
The EMV Technology
The EMV ( Europay, Mastercard, Visa) introduces users to more secure and computerized features on digital payment platforms. The unique code or digits on a card required to recognize a bank account are no longer needed. The EMV technology uses unique temporary codes during every transaction, making it extremely difficult for scammers and frauds to cheat users.
Paying through smart speakers
Smart speakers have overtaken our lives and are no longer restricted to mobile phones or computers. Although most people still use smart speakers and assistants to play music, for traffic updates or order a meal, studies show that they are also being used to make direct payments. However, there are some security concerns about paying via smart speakers, which keeps many people from using them to make payments.
Mobile wallets are digital versions of physical wallets that can be used to make and receive payments and store money, just like a physical wallet. Users can also book hotels, buy tickets, pay utility bills, and get rewarded through a mobile wallet. Studies show that usage of mobile wallets will boom in the coming years. Big tech giants like Apple, Samsung, and Google create their mobile wallets.
Doing away with multiple payment gateways
Online companies and merchants are increasingly looking for an all-encompassing payment option. Earlier, companies had to embed four to five different payment options to cater to customers from every corner of the world. However, this is costly, time-consuming, and more difficult for them. This is why companies prefer an all-in-one payment method that cuts down on the cost and hassle of multiple payment gateways.
Top FinTech Prediction trends of 2022
The FinTech industry is rapidly changing, and here are some of the top FinTech prediction trends of 2022.
As cryptocurrencies like Bitcoin become more commonplace, fully digital banks are the way forward. These banks allow the easy transaction of cryptocurrencies and online payments. Predictions say that digital banks will overtake physical banks, as they minimise the need to physically visit a bank, wait in long queues and do tiresome paperwork.
Studies show that 48% of banking representatives think blockchain technology will completely transform the banking system. Blockchain provides security to users as it is end-to-end encrypted. They have also emerged as secure payment gateways for international transactions.
AI will cut down on 22% of banks’ expenses by 2030.AI has shown proficiency in managing cybercrimes and bank frauds, prompting banks to incorporate this cutting-edge technology into their banking systems. Artificial intelligence can also manage customers with technologies like Chatbots, making it a lucrative option for banks to explore.
QR code payments
QR codes are becoming increasingly safe and hassle-free digital payments options. The popularity of QR code payments is only set to grow over the next few years. Brands are using QR codes on their products for customers to make a quick purchase, while retailers offer discounts through QR codes, encouraging customers to make a purchase.
Some Popular Online Payment platforms
With 286 million active accounts, Paypal tops the list of digital payment platforms. Convenient and easy to use, this platform is ideal for international money transfers. Paypal is supported across various websites and platforms and supports over 200 different currencies, making it the go-to choice for international money transfers. However, one of the major cons of this platform is a hefty service charge that users must pay every time they make a transaction on this platform.
To use this platform, clients must have an Amazon account. This platform is easy to use and has a convenient interface. Amazon Pay is also support across platforms, making sit ideal for different kinds of transactions. However, this platform charges a hefty fee for cross-border transactions. Also, Amazon can withhold funds when you initially start processing payments.
This is a widely popular online money transferring platform in India. This is a quick and safe gateway for clients to pay their monthly bills, book tickets, or recharge. However, prominent e-commerce websites like Amazon and Flipkart do not support this platform, which is a con for customers.
This platform has also emerged as one of the most popular gateways for online transactions. This is easy to set up and is very safe and secure. However, Google Pay is only supported across a few different models of mobile phones, which is inconvenient.
Digital payments and online money transfers are here to stay. In this day and age of rapid technological advancements and widespread digitalization, digital transactions will only gain more popularity by the day. They might eventually entirely replace physical cash. The market trends will decide what the future will look like. As of now, the future of digital transactions looks bright and promising.