The COVID-19 Pandemic is Influencing Consumer Payments Solutions

January 4th 2021 new story

The global COVID-19 pandemic has brought a number of new innovations to the payment sector. Even those who weren’t too keen in the beginning to adopt these changes are now using modern digital tools to streamline online transactions. Cashless and contactless payments have become the new normal.

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With the rapid development of payment technology, banking and financial institutions have embraced tools that facilitate cashless transactions. Growing customer demands have transformed payment systems. Customers not only expect a seamless digital transaction experience, but they want personalized and customized payment options.

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Not only large-scale corporations, but retailers and organizations have also implemented digital payment systems. This has made it much easier for customers to make payments digitally, often without having to leave their homes. Let’s check out the top payment trends we will see in 2021.

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1. Faster Than Ever Transactions

Many customers abandon their carts if they find the checkout process time-consuming and complex. Customers demand fast and secure transactions. They don’t want to be redirected to a chain of different pages to complete their purchase. Whether the transaction is processed online or offline, it is in retailers’ best interest to remove as many checkout barriers as possible.

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In 2021, businesses will respond to market demand by streamlining the payment process as much as possible. To provide the customers with a frictionless transaction experience, it is important to cut down waiting times, especially on the checkout page. This can be done by streamlining the checkout process, as well as reducing the number of steps required to complete the purchase.

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2. Real-Time Payments

Customers like to shop in stores that offer multiple payment options. Store owners have started to offer mobile payments, contactless card payments, crypto coins, and e-wallets in order to offer the most convenient shopping experience. Real-time payments (RTP) that facilitate multiple types of payments online in a matter of seconds is set to be a major trend for 2021.

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This means the payment will be sent and received in no time and these systems can often provide a notification for digital transactions. Every time you request a payment, send an invoice or receive payments, the business will get a real-time notification, helping to streamline their operations.

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3. Artificial Intelligence

The COVID-19 pandemic forced many people to adapt to digital transactions. This, in turn, has unfortunately led to a spike in credit card fraud and cybercrime. Therefore, it is more important than ever that businesses of all sizes have adequate security measures in place to protect themselves and their customers.

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As businesses look to improve their security against growing cyber threats in 2021, they will turn to AI-enabled security protocols. AI can help detect and prevent potential security breaches. Another use of AI in 2021 will be to integrate different payment systems into their eCommerce store.

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4. Cloud Integration

Cloud services enable businesses to store sensitive financial data online, instead of in physical devices. By integrating a cloud system with their payment systems, companies can allow their customers to initiate transactions through their smartphones. Many retailers and eCommerce stores are shifting to mobile-based payments to improve security. In 2021, this will be supported by cloud services that facilitate immediate payments.

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Next year, we’ll see more businesses adopting cloud-based ERP or EPOS (electronic POS systems) to automate their payments. From creating automated and error-free digital invoices to facilitating real-time transactions, cloud-enabled software systems can efficiently streamline payment systems. These systems prevent manual errors while allowing payments to be sent quickly and efficiently in a single click.

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5. Digital Currencies

While transactions with traditional currencies can be processed digitally, more and more people are embracing digital currencies. Bitcoin, Litecoin, Ethereum, and other Cryptocurrencies are already being used for online transfers, and this will really take off in 2021. Consumers and businesses are being drawn to digital currencies as they offer anonymous and speedy transactions.

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Most importantly, confidential information is encrypted, so only the recipient and sender can decode the encrypted data. This eliminates most of the security risks associated with online transactions, making them an important solution to modern security concerns.

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6. Adoption of Contactless Payment

Contactless payment was already becoming a trend in recent years and it has exploded since the start of the COVID-19 pandemic. With the lockdowns implemented across the world and the growing numbers of cases, more and more people are embracing contactless payments to protect their health.

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Not only are contactless payment options convenient, but they are a must for safety in modern times. We have seen a 14% growth in digital contactless transactions in 2020, and within the first few months of 2020, transactions worth more than$4.4 million were processed digitally. As people get comfortable with these methods, there is no reason that contactless payments will not continue to grow in 2021.

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Final Thoughts

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The demand for mobile apps, cryptocurrencies, e-wallets, and contactless payments has skyrocketed over the past few years, and 2021 is sure to bring yet new trends and innovations. For businesses to be competitive, they need to keep on top of the latest trends, whether simplifying your payment structure by implementing cloud services or adopting the latest software solutions designed to streamline payments and online transactions.

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