Pay management, like the rest of our planet, is becoming increasingly automated. Here are five different types of digital payment methods that your company can use to complete purchases.
Businesses and customers alike are looking for quicker, simpler, and more efficient payment options as cash becomes obsolete, and contactless transactions, particularly in light of COVID-19, are in high demand. Consumers would prefer to use five common digital payment methods in the coming years.
What are the different types of digital payment services?
Contactless, cashless, and paperless payment systems are also examples of digital payment services. Via services like smartphone applications and AI/machine learning, technology has enabled the world to accept these more accessible payment exchanges. According to Statista, the number of people who use digital payments will increase by 5.4 percent by 2020.
Different types of digital payment systems are available.
Today, a variety of digital payment methods are common. Here are five of the most common payment methods for businesses to use:
- Biometric identification devices
Customers are making more digital purchases, which raises the need for surveillance. Biometric protection protects against identity theft and fraud by using fingerprint scanners, facial recognition, iris recognition, pulse tracking, and vein visualization.
Many phones with digital wallets, such as Apple Pay and Google Pay, currently use fingerprint or facial recognition, but more options are being created. Instead of inserting a PIN code or signing a receipt, Visa is testing a biometric payment card that allows users to authenticate a transaction by pressing a sensor on the card that can decide whether the fingerprint is a match.
Per year, over 18 billion biometric transactions are projected to take place by 2021. As a company owner, it’s important to safeguard your data as well as that of your clients, and biometric security is a promising way to accomplish those goals.
- Point of sale on the go (mPOS)
Businesses should prioritise convenient payment processing now, as there will be 27.7 million EmPOS devices by 2021, up from 3.2 million in 2014. Tablets, laptops, and other cellular gadgets that use an interface and a card reader to accept purchases like a cash register are known as mobile POS schemes.
This allows companies to do away with a central check-out area and take purchases from anywhere in their shop, including from off-site. You should, for example, take the payment system to a trade show or other off-site venue without thinking about how purchases will be handled. Customers will use the card reader connected to your computer to swipe their credit or debit cards and make an immediate buy – it’s that easy.
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- Wireless speakers
Voice instructions are no longer a far-fetched notion. Consumers may make an immediate deposit or order by using smart speakers such as Google Home, Apple HomePod, and Amazon Echo. In reality, 35% of consumers use their smart speakers to purchase items such as home care, groceries, and clothes.
Any customers are concerned that this is not the safest way to make transactions. Nonetheless, by 2022, this digital payment pattern is expected to reach 77.9 million people (up from 18.4 million users in 2017). With this kind of development on the horizon, it’ll be critical to customise your web shop for voice search so that your company can be found using smart speakers.
- Payment through contactless technology
Users can move money, buy goods, pay bills, and complete nearly every other form of financial transaction with the tap of a finger using a variety of mobile payment applications. Purchasing products and services using a cell phone is simple and convenient when you have an account and store your payment information in it.
Venmo (which is also useful for peer-to-peer payments), PayPal, Google Pay (previously known as Google Wallet), Apple Pay, and Samsung Pay are all examples of this technology. Allowing consumers to make electronic payments through their bank app/digital wallet or other mobile payment applications provides an unparalleled level of convenience.
Contactless payment systems come with a price tag. To begin, you’ll need to buy card terminals that support near-field communication technology. Accepting Apple Pay and Google Pay is free, but when customers use a credit card to pay for products or services in your store, premiums and fees apply much as any other credit card purchase. (These are referred to as card-present transactions.) You should inquire about these particular prices for your processor.
Many customers choose these strategies because they believe they are simpler and faster than counting money or swiping a credit card. It’s also much easier to access for the many customers who are always using their phones.
Phone wallets aren’t the only way to make contactless payments. RFID technology, which is used for contactless purchases, is also available on new credit cards. Customers who use a contactless credit card actually keep the card next to the card reader instead of swiping it, inserting it into a card reader, or tapping it against the terminal.
- Payment options on social media
Payment options, such as exchanging money from one person to the next (P2P payments) or from customers to merchants, are also available directly within social media networks.
When it comes to shopping, the majority of millennials use social media. According to an Animoto survey, a brand’s social networking visibility influences 75 percent of millennials’ buying decisions.
Facebook, Instagram, and Pinterest all have business profiles that allow brands to sell to customers for a small price, with digital payment purchases taking place directly on the web. According to a 2018 Avionos survey, 55% of online shoppers have made a purchase through a social media site.
Consumers have driven changes in payment systems ahead. The use of numerous alternate payment mechanisms, such as those mentioned above, will continue to grow, while the use of cash and credit cards, in particular, will continue to decline, as shown by the Avionos market survey.
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