The cashless payment method is growing exponentially with evolving payment methods, rising e-commerce use, enhanced broadband connectivity, and emergence of new technologies. Can increasing incidences of cyberattacks and spams hamper the development of internet payment market or can it carry on growing at the rapid rate?
The international digital payment market is expected to hit the USD6.6 trillion mark in 2021, registering around a 40% start 2 yrs. The cashless payment methods are rapidly evolving with ground-breaking innovations such as mobile wallets, peer-to-peer (P2P) mobile payments, real-time payments, and cryptocurrencies. From the growing digital age, many payment technology companies are collaborating with traditional banking institutions to appeal to the latest consumer and merchant preferences. Because of enhanced broadband connectivity, increasing mobile commerce, emergence of new technologies such as Virtual Reality, Artificial Intelligence, and rapid digitization, vast amounts of individuals have started embracing contactless payments in both developed and emerging countries. Besides, surging e-commerce businesses, digital remittances, digital business payments, and mobile B2B payments are boosting the non-cash transaction ecosystem.
Cashless transaction method users across various generations are widely following a digital peer-to-peer (P2P) apps since they are more inviting and versatile to make use of. In-app payments or tap-and-go transactions take seconds in the checkout and allow users to create payments anytime and anywhere. Tokenization, encryption, Secure Sockets Layer (SSL), etc., offer multiple methods for securing payments while enabling digital transactions. Moreover, you do not have to add information each and every time to perform the payment process. Thus, online payment gateways play an important role in the economic growth, enabling exchange present day economy. With social distancing rules available, digital payments are getting to be a responsibility for contactless transactions as opposed to just a transaction option to prevent the spread of coronavirus.
Digital Commerce Empowering Businesses
Electronic payment systems have grown to be an essential part of companies as consumer the likelihood of shopping online is expanding. With broadening internet penetration, increasing using smartphones, and diverse selections for e-transactions, most rrndividuals are preferring online channels over traditional brick-and-mortar stores for shopping. Therefore, businesses are shifting online with the electronic payment treatment for maximize their profit earnings. Automating the electronic payment system eliminates the scope of errors and saves a considerable amount of time and energy. High standards for detecting and preventing fraud in digital transaction systems and AI-based fraud detections protect users from security breaches. By giving the freedom to create payments through credit/debit cards, mobile money, e-Wallet, etc., the lenders can expand their customer base. The electronic payment process improves customer satisfaction as customers don’t have to count cash or handle paperwork when they want to make the transaction.
Biometric Authentication Enhancing Security
Biometric authentication involves recognizing biometric features and structural characteristics to verify the identification of an individual. The verification method can involve fingerprint scanning, facial recognition, voice recognition, vein mapping, iris detection, and heartbeat analysis. With all the surge in identity fraud and fraud, biometric authentication has become a reliable and secure alternative to make digital transactions. As outlined by a recently available research, biometrically verified mobile commerce transactions are anticipated to constitute an enormous 57% of the total biometric transaction by 2023. Biometric payment cards can also be becoming more popular while they support tap-and-go payments, allowing users to make faster digital transactions. Digital payment technology provider, Worldline is partnering up with the French FinTech, A3BC (Anything Anywhere Anytime Biometric Connection), to protect cellphones from intrusion which has a two-factor authentication process. The combined solution eliminates identification through a single touch, rather it recognizes fingerprints by having a picture of the hand. MasterCard is likely to bring FinGo’s vein-scanning payment solution that facilitates users to authenticate transactions.
Dominance of Mobile Wallets
In 2019, mobile wallets overtook cards to get the highly adopted payment type globally. Digital wallets offer flexibility to users to hold multiple payment methods a single digital home and switch cash into electronic money required for online or in-store purchases. Loan companies have already did start to embrace the digital wallet trend by giving virtual cards to business customers. The virtual cards saved in digital wallets include details like 16-digit card number, CVV code, date of expiry and work just like the physical plastic card. Currently, only 37% of merchants support mobile payments at the pos, however with the rising adoption, merchants are prepared to spend money on technologies facilitating digital wallets. The virtual wallets can save money as a result of low processing costs because they limit transaction values and frequency. Artificial Intelligence (AI) is helping the buyer with regards to transactions with ChatBots, built to execute and robotize essential exchanges as per the user’s interest. Besides, cryptographic money-based e-wallets are now being embraced by new companies to small-medium organizations for storing digital money. Smart voice technology is causing the development of smart voice wallets from the time Amazon propelled the main of the platform, which is now being then Google and Apple.
E-Commerce Boom Accelerating Digital Payment Market Growth
E-commerce growth in an exponential minute rates are creating shock waves, as well as the sonic boom is reverberating across the FinTech sector. The growth of numerous e-commerce companies is driven with the kind of financial services they supply. Digital transactions help it become convenient to the buyer and seller to create transactions and remain faithful to the market industry space. The COVID-19 pandemic added some other dimension to e-commerce innovation, introducing newer trends such as payment alternatives at checkouts (not with digital wallets), virtual cards, QR codes, and also other touchless transactions. Besides, the Buy Now Pay Later (BNPL) trend is dominating the e-commerce industry as it relieves the financial burden on the buyer. BNPL involves a gentle credit assessment, and so the consumers can get what they desire, maintain your inventory moving, and pay overtime without affecting their credit rating. BNPL provides businesses with much-needed liquidity and greater flexibility in the checkout.
Influence of COVID-19 Pandemic on Digital Payment Market Growth
Digital payment systems have moved beyond their peer-to-peer (P2P) transfers and bill payments. The COVID-19 pandemic allowed digital payment systems to showcase their strengths, such as a strong comprehension of hyper-local markets and how it can establish strong local partnerships. Businesses and consumers increasingly “went digital” for providing and getting products and services online. In the event the pandemic hit, people would not need to touch or exchange cash because of the paranoia of catching the issue from physical currencies. Several governments around the world introduced digital financial transfers to provide COVID-assistance. Because of lockdown measures, consumers now use online platforms, which catapulted the need for digital payment systems. Now, digital platforms have become a vital part of people’s lives, and people are more prone to continue shopping online inside the post-pandemic period. The dramatic change in consumer behavior may well augment the demand for e-payment systems more. Therefore, publication rack focusing their attention on digital mediums in order to meet the brand new customer demands and thrive businesses within the changing market scenario. Organizations are reimagining customer journeys to reduce friction and still provide new security features. Payment companies like PayPal and Square Cash are staffing up in general to higher view the rearrangement of societal norms and stabilize the organization in the future.
e-Payment Systems would be the Future
With increasing smartphone and internet penetration, consumers are becoming tech-savvy, which presents endless opportunities for the digital payment markets. Post-pandemic, digital payment systems are supposed to carry on and flourish over the years into the future. While cards remain the first choice for payments around the globe, mobile wallets are quickly gaining traction. The original earnings is declining in bank branches and ATMs, demonstrating an electric move towards a cashless society. Currently, China dominates the world mobile wallet consumption, then Mexico. However, you can still find many countries that are highly dependent upon cash on account of insufficient trust towards finance institutions and deficiency of proper broadband infrastructure, etc. Sooner, social media-initiated payments, biometric payments, voice-activated payments will probably become mainstream in developing countries at the same time.
Cybersecurity and Privacy Concerns with internet Payment Solutions
Cybersecurity and privacy threats are getting to be a troubling concern about the increasing incidences of online fraud. Based on the Mastercard survey, one in four consumers experienced some type of fraud in 2020, ramping the cybercrime rate by 49%. Inside the first half 2020, online scams increased by 73.8% from 2019. However, adopting new-age technologies like multifactor authentication, biometrics, 3D security, Artificial Intelligence, and Machine Learning can help control fraudulent activities for example phishing, virus attacks, etc. Shifting to contactless cards, QR codes, and tokenization may also help mitigate risks linked to digital payment solutions. Besides, sensitizing end-users in regards to the secure use of e-payment solutions through amplifying efforts towards building financial literacy may help prevent frauds. The emergence of mobile commerce and the evolution of e-payment platforms backed by robust security solutions can help to drive the purpose of making the economy truly cash-less.
As outlined by TechSci research set of “Global Payment Gateway Market By Type (Hosted, Self-hosted & Bank Integrated), By Enterprise Size (SME and huge Enterprise), By End-User (Retail, Travel & Hospitality, Healthcare, Education, Government, Utilities & Others), By Region, Competition, Forecast & Opportunities, 2026”, the worldwide payment gateway information mill expected to cross USD15 billion mark in 2019, registering a CAGR of 22% by 2026. The development might be related to the growing demand for online transactions, rising broadband connectivity, and exponential growth of e-commerce around the globe.
For additional information about send money globally browse the best net page: look at more info