The way people transact is changing by leaps and bounds. When was the last time you stood in a long queue at the bank to send money to someone? Most of us would have a hard time to remember. Modern consumers are blessed with a myriad of way to make and take payments. Though cash and cards still dominate the payments landscape, there appears to be a higher acceptance of mobile payment technology, especially by younger demographic groups. Furthermore, the exponential growth rate of IoT is expected to fuel new payment trends and use cases in the years to come. According to a recent survey of 1,500 consumers in the United States and Canada by Accenture, an analysis of consumer banking and payments trends and the likelihood to embrace future payment technologies was studied. Thanks to the advances in technology, we have seen significant changes in the banking and financial sector in the previous year. So, what payment trends are in store in 2018? Let’s take a look:
Bitcoins and blockchain technology
Though many are still skeptical about making blockchain payments, their benefits cannot be ignored. Bitcoins and the blockchain technology are one of the most promising payment trends to watch out for this year. In 2018, the financial sector is all set to move towards adopting blockchain technology for various purposes including payment processing and trading functions. Banks and regulators can use blockchain as a completely transparent and accessible recording system, making auditing and financial reporting considerably more efficient.
Fintech and banking sector partnership
Banking sector companies are gradually coming to terms with the fact that they need to be in line with the technological advancements of fintech companies to survive in the long run. Partnerships between banks and fintech companies are the key to an expanded payments ecosystem. This year, the advancement of companies in the baking industry with the help of fintech technologies is an exciting payments trends to watch out for.
AI for routine transactions
Chatbots are one of the simplest forms of artificial intelligence that are revolutionizing mobile transactions in the financial sector. These chatbots can prepare and execute basic transactions with the approval of the customer. Now, a simple voice command from the customer is all it takes for these chatbots to provide basic financial snapshots and transfer funds. The ease at which it can be executed will surely make this one of the most favorite payment trends for 2018.
Biometrics and security in payments
Though the use of biometrics as a security measure has been prevalent for quite some time now, it is slowly becoming commonly used as a mechanism to authorize payments or transfer funds. This system adds another level of security to mobile payment systems. Once this system is installed, it eliminates the need for a password. Customers will be able to authorize payments with a just a fingerprint.
Rise of mobile wallets
Thanks to open banking and APIs providing the capability to enhance the customer experience with rewards and instant alerts, mobile wallets are finally poised to take off. The hassle-free and user-friendly experience that mobile wallets provide are going to make this one of the most popular payment trends among customers in the financial sector.
To know more about the top payment trends for 2018