With the help of technology, financial services have made a great stride in recent years. The accelerated growth has made the sector undergo a massive transformation. Right now, there are a tremendous number of alternatives for a person to execute a payment.
Most of the customers get confused as they choose a method because all of them are convenient. A lot of people have been switching from banks to e-wallets and mobile payments. Unlike banks, the new generation payment methods have the speed and functionality people need. They have lifted boundaries and can be used to make payments, send, receive, and withdraw money globally.
So far, the customers are delighted with the new payment methods. But what is ahead?
What will the Future of Payments be?
Here I will try to tell you about the new developments and the trends that will shape the future of payment.
The global experts have been talking about the contribution of AI and ML in the systems regarding payments. AI and ML have been used in fraud detection in payments systems for quite some time now.
With the help of AI, the experts say that the companies can evaluate the customers’ spending habits and offer them a customized payment solution. With AI and ML, the companies can elevate their customers’ user experience, get more customers, and raise the revenue.
Some companies have adopted AI in customer services; for example, some payment companies have been using applications that handle a customer’s finances. The app is sort of a banking app on your smartphone but works on its own without bothering you. The app executes your payments, pays your bills, shows you tips to save money, or gives you investment tips to increase your savings. Besides, some applications are voice-activated.
Another trend in payments is “adopting payments systems in different channels.” But what does that mean? Think of an intelligent car that will pay your gas, parking tickets, etc. wouldn’t it be wonderful?
Facebook is also integrating new technology to make payments. You will be able to shop on Instagram without checking out with FacebookPay. (that will be the name, I guess) Social media will be an exciting channel to make payments, in my opinion.
One last trend that I would like to mention is the innovations in mobile payments. Mobile phones are “life” and it is predicted to continue being “more life.” A study shows that an average person spends 4 hours a day on their smartphone. Many sectors are adapting their technology in mobile devices, and the payment technologies for mobile phones are looking to expand their services in mobile apps. With many payment methods, people can buy or sell; they can send and receive money and make payments. Millennials do not carry wallets; they just use their smartphones! Studies show that millennials are also better at adapting to money management tools and digital-only banks.
With the trending technologies, the future of payments is promising, and the industry has the capacity to adopt the latest inventions swiftly!