The evolution of payment options has been pronounced in recent times, from cash and simple debit cards to contactless methods and decentralised cryptocurrencies.
The cryptocurrency market is particularly huge at present, boasting a total market capitalisation value of $1.87 trillion as of February 14th, 2022.
Outside of this market, collaboration will become crucial as the lines between new and traditional payment options continue to blur, with significant mergers and acquisitions recently featuring PayPal, Fiserv, First Data and iZettle. But what exactly does the future hold for payment methods in the marketplace?
The Rise of Artificial Intelligence (AI)
Interestingly, the finance and payment markets were among the first to embrace AI technology, as a way of detecting fraud in transactions across a range of different platforms.
As AI technology has continued to evolve in recent times, however, it has also moved more heavily into digital payments.
More specifically, AI is now being leveraged to create intuitive virtual assistants, which are deployed by fintech startups to help customers regain (or maintain) their financial wellbeing.
For example, this technology can enable customers to manage their spending in real-time while simultaneously reducing credit card debt, creating more informed fiscal decisions over time.
Introducing Seamless Payments
Ultimately, simple and seamless payment solutions are part of an accessible customer experience, and one that helps brands to optimise their bottom line conversion rate.
On a fundamental level, this also enables merchants and businesses to keep customers engaged until they’ve completed their purchase, with digital wallets now widely used to negate the need to fill out lengthy and time-consuming funds.
We’re also seeing open banking platforms evolve to alter digital payments, particularly as this market becomes increasingly competitive.
Through open banking, customer data is being freely shared between various operators and service providers, offering individuals access to tailored and targeted offers that can optimise their spending power over time.
Mobile Points of Sale
The term ‘mobile point of sale’ (mPOS) refers to a mobile device (such as a smartphone or tablet) which serves as a cash register or traditional POSterminal wirelessly.
Such tools are used by merchants to accept payments on the move, and there’s no doubt that they’ll play a significant role in the digital payment landscape of tomorrow.
This will certainly revolutionise the world of retail, with multiple mPOS devices negating the need for physical stores or dedicated checkout spaces, slashing company overheads and potentially creating more room for merchandise in brick-and-mortar stores.
This trend is something of a slowburner, but it’s undoubtedly one to watch in the coming months and years.