Digital mobile payments have been incredibly beneficial for businesses across numerous industries. Although it might seem like a lot has been achieved, startups in this area are far from slowing down with their innovative ideas. Because our consumer habits have changed dramatically, technology keeps getting updated in order to meet the new demand. The current and future methods of payment need to match the modern way of living.
Hospitality, retail and online gambling are all industries that didn’t realize the impact mobile payments would have on their evolution. For example, online bingo is fun to play, but digital means of payment have made sure it’s also safe and more accessible. Players can enjoy their favorite games, knowing their personal details and bank details are kept safe by AI. Mobile payments have also made online purchases easier and safer, helping the e-commerce sector grow at an incredible speed. Now, let’s continue with the trends due to be set by fintech.
Both fingerprint and facial recognition are being used by Android and iOS for unlocking devices or accessing apps on them. The same idea is leading the way when it comes to biometric authentication and it is already being researched and tested for the financial industry. When making payments, using a part of your body for authentication increases the security and accuracy of the transaction.
Facial recognition and iris scanner payment systems are being trialed in China and in many countries in Europe. These systems would be then used for identification instead of the traditional methods, like passwords and PIN numbers. Moreover, last year, Amazon started working on a new technology for its Amazon Go stores, called Amazon One. This technology would scan people’s veins configuration, allowing them to pay by waving their hand.
Advancement of Wearables
Given that the market of wearable payment devices is forecasted to reach $42.9 billion by 2026, this industry seems to have big plans. Wearables nowadays are not used much to make payments, but more to track our health and fitness levels. However, many companies are working on incorporating extra features on their smartwatches to allow more people to make payments using only their wrist.
Although this idea is not new, it is fairly uncommon and not many people are aware that wearables can do many of the tasks a smartphone can. The wearable technology is considered even more secure and error-free when compared to other methods of payment. In 2018, KBC, a Belgian bank insurer, became the first one to allow customers to pay via wearables. The decision was reached after a year-long trial of 1000 people who connected their debit cards to a wearable and used it exclusively for payments.
Over the past few years, technology has moved incredibly fast in this direction. Digital payments have seized the market, offering consumers more convenient and accessible options. A lot more is expected to be done in the future and the growth of mobile-based transactions shows that it is an industry with a lot of room for development.