Mobile payment technology is achieving radical change in the way purchases are made, it is driven by ease of use, convenience and increased security that keeps transactions safe, along with the automation and streamlining of payment processes.
In a report published through CIOReview, a technology magazine that talks about the enterprise solutions redefining the business goals of enterprises, five mobile trends that will radically shape the future of payment are identified.
1. More In-Store Mobile and Contactless Payments
Mobile wallet payments amounted to $75 billion in 2016, and they are forecast to grow to $500 billion by 2020 – or about 80% over five years. VISA reports that already “29% of Americans now make zero weekly purchases with cash, with the percentage of people who use cash for everything dropping from 24 to 18% since 2015.”
Driven by technology giants such as Apple, Samsung and Google, mobile wallets or digital wallets are increasingly embraced by consumers to easily pay for things in person or online. They love the convenience, security and authentication features, like not having to enter credit card information on websites and not having to give physical credit cards to cashiers.
2. Increasing Demand for Mobile Point of Sale (MPOS)
The mPOS can also can make the payment process within the store faster and more flexible, it frees merchants from legacy in-store payment systems and their brick-and-mortar locations, so they can go almost anywhere their customers are and accept payments, including mobile and credit cards.
Business Insider predicts that there will be 27.7 million mPOS devices in use by 2021, compared to only 3.2 million in 2014.
3. Biometric Authentication is on the Rise
With the growing problem of fraud and identity theft, biometric authentication will continue to grow as a way to authenticate identity for payments, it will become a more reliable way for merchants to verify the identity of who they are dealing with.
4. Artificial Intelligence is getting smarter
Depending on Artificial intelligence (AI) assistants such as Amazon’s Alexa is a trend that’s bound to grow, forcing merchants to think of ways to accommodate AI shopping through their sites. AI will also be used more for cutting-edge fraud detection and defense against cyber-attacks.
5. Social Commerce Speeds Things Up
Merchants here are using social media to reach out to their customers and offer them the ability to check out through the social network they are using at the moment, rather than being redirected to an online store.
The payment process becomes faster and streamlined, especially with chatbot checkouts and autofill helping to speed it up.
Mpayments, mobile payments, mobile wallets, mPOS, AI, Ecommerce, chatbots, Business Insider