Mobile payments technology has been dominating the consumer finance space in recent years. It is a hot topic in diverse industries including hospitality, retail, and financial industries among others. The future of mobile payments is indeed bright as it reshapes the way consumers buy their products and order for their services.
From someone who picks up their cup of coffee without queueing, to the swipe reader using a smartphone to take payments in an eventful farm market, the suitability of this technology can never be underestimated.
This is the reason why it’s best to be prepared for the powerful future that is on its way to hit us. We must forecast the future, and that leads us to this.
Here are five trends that according to us at Orokii are shaping the future of mobile payments.
1. Expansion of Mobile Commerce
According to experts, consumers spend, on average, over four hours on their phones each day. The statistics for millennials are even higher and will rise in 2021 and beyond. Mobile payment trends make use of this tendency and work towards facilitating online shopping. Any business that streamlines its mobile services stands to gain.
For instance, financial companies can set up many mobile payment options, make their website mobile-friendly, and even introduce gamification to appeal to millennials.
The future of mobile payments will grow simply by using phones to access, send, and receive money. Mobile wallets are fetching popularity, as they discard the awkwardness of using a physical debit-credit card while shopping online.
Digital-only banks (Neobanks) will soon become more of a reality when their regulatory chains loosen. They are already getting popular and many nations already have the essential regulations to govern such digital banks.
2. Augmented Reality is going to the new thing
Virtual Reality (VR) includes the creation of a replicated environment from the use of computer technology. Currently, VR has shifted beyond gaming where its application has moved into education, retail, travel, and even urban design. VR Commerce is transforming how companies do business and how payments are made.
While one can moot that mobile apps in their present form already allow seamless payment processes, VR payments offer a more real and tangible experience, which may end up being more appealing to consumers.
3. Rise of Biometric Authentication
Mobile wallets are secure mobile payment systems thanks to the advanced biometric authentication procedure. It is the ultimate solution to the long-standing issue of identity and fraud theft associated with cash payment. It is a reliable means to identify who is the owner of an account.
When it comes to business, it is easy to identify employees and no one can receive wrongful payments. According to a study, nearly 18 billion biometric transactions will be taking place by 2021. Let’s just say that the biometric payment system will be more dependable than ever and consumers will adopt it because it will keep them safer online.
4. Adoption of Blockchain Technology
No matter how turbulent and vague blockchain technology may sound from trivial payment systems, it is surely going to be a keystone in value exchange mechanisms. Some banks might not have been able to take a distinct call yet when it comes to accepting it with open arms. But, many of them do recognize the advantages that this mobile payment system can introduce. It is likely that the financial world will move towards the adoption of Blockchain technology to install it in diverse specific use cases, especially for payment processing and in diverse commercial uses.
5. Expansion of Artificial Intelligence
Artificial Intelligence (AI) is getting smarter by the day thus advancing the quality of mobile payment technology. It is a trend that is also set to develop to allow more consumers to adopt AI shopping on diverse sites such as Amazon’s Alexa. It can read customer’s operations history, including their buying and spending habits, and forecast their future activity. This technology will also be used in top-notch fraud detection systems and to offer quality protection against cyberattacks.
When it comes to businesses, AI helps to plan targeted promotional campaigns to advance the interaction with clients and enterprise planning ultimately leading to better efficiency in generating sales and implementation of cost-control measures in the future.
The sphere of the payments industry is constantly evolving. A series of crucial changes in this domain is always expected with some time-interval, thanks to the constant technological advance. The future of mobile payments is getting brighter with the constant growth in mobile-based transactions. Thus, it would be smart for all of us to be aware of such trends to stay competitive in commerce and business!
Orokii is one such business initiative that is working really hard to empower the consumers in this competitive field. We are the platform where inclusion meets innovation.
You don’t need Google to install the latest tech — the right partner like us at Orokii is just what you need to stay within budget and make needed changes!
Reach out to us today to understand how we can help you incorporate the latest payment methods into your business!
