- The global Digital Payments industry is expected to reach $6.6 trillion in 2021
- In 2020, the industry was valued at $5.4 trillion
- The industry was growing at 16% YOY before the pandemic
- The rate increased to 22% since the pandemic has hit
The innovative payment solutions market is growing steadfastly, especially with the changing customer perception about cashless payments.
And it is bound to grow even more!
Here are the 2021 innovation trends in the payments industry.
Contactless Payment Solutions
The pandemic has indeed pushed contactless payment products to an all-new level.
A report from the National Retail Federation states, around 67% of US retailers now accept contactless payments.
Another report from Visa mentions that 75% of stores in Europe offer in-store contactless payments.
Technologies like NFCs and EMVs are also witnessing a boom in recent months.
The market abounds to receive more innovative payment products in the coming months.
It needs no mention - everything on the internet is vulnerable to cyber-attacks. And digital or contactless payment solutions are no different.
Companies are already improving their payment modules to secure their users against cyber attacks. Experts from the HPS payment solution suggest that more security upgrades come up in the forthcoming years. The idea is to ensure payment security end-to-end for everyone involved.
Technologies such as Artificial Intelligence and Machine Learning are already helping gain pace in the process.
Surprisingly, 44% of payment companies are already using these technologies. And the payment routes are already witnessing lower cyber threats.
Unlike a few years ago when financial service providers and merchants were distinguishable, they are integrated into one platform.
Well, integrating merchants and service providers into a single package allows a seamless checkout experience for customers.
Consider this; an online shopper will not like too many redirects before paying and buying their product. If the payments provider would integrate the merchant services within the shopping app or website, customers will be happier. And as a result, it should help edge the retail business in the market.
Refined B2B Payments
Until recently, most innovations in the payment industry were focused on the end customers or individuals. But, the pandemic has also overhauled this trend.
Since many small businesses regularly need to make B2B payments, the service providers are now shifting their interests.
It is expected that the B2B payments will soon be transformed entirely into contactless digital payments. Unlike a few years ago, when most payments were made through checks or cash, businesses are now opting for digital payments.
P2P Payment Solutions
Since the pandemic, the audience for digital payments has also broadened.
It's not just the tech-savvy millennials, but the older generations also show interest in contactless digital payment technologies.
Consequently, the payment service providers are now focusing on improving user-friendliness. In other words, the service providers are trying to make their products easy to use for all age groups.
Perhaps, soon, we might witness those sci-fi imaginations shaping into reality.
Nonetheless, the industry trends seem pretty promising.