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2020: 4 Key Payment Trends to Keep an Eye On

By CIOReview | Thursday, October 29, 2020

Firms are investing in innovative payment trends that tap into unmet consumer demands and accelerate business growth.

FREMONT, CA: New technology and competition from fintech have rapidly disrupted the financial service industry, especially payment and card. Payments are increasingly ubiquitous, embedded, standardized, and secure, reducing friction in processing and ultimately transforming the customer experience. As the world of payment and card is evolving rapidly, it is essential to keep an eye on payment trends to stay ahead of the curve. Here are some of the biggest payment trends to watch in 2020.

• Contactless Payments

Financial institutions are issuing new, contactless payment cards. These cards use near-field communication (NFC) technology and enable customers to simply tap their cards near a card reader to make purchases. Consumers will begin to experience how quick and easy it is to just tap and go. The same technology that enables merchants to accept payment with a contactless credit card will also allow them to accept mobile wallets or payment using watches or wearables.

• Biometric Authentication

Consumers today have been using fingerprints to unlock their smartphones, authorize mobile banking transactions, and make mobile payments. Fingerprint or other biometric identification can help authorize payments, making transactions more efficient, accurate, and secure.

• Invisible Payments 

Internet of Things (IoT) technology can create seamless payment processes. Just as drivers with RFID sensors can bypass toll booths and pay their tolls with a card on file, users will be able to select their purchases, walk out of the store, and receive a receipt on an app or through email or text with this invisible payments. In 2020, merchants will continue to use the potential value of moving payments to the background to improve customer experiences.

• Mobile Point of Sales

Shortly, the mobile Point-of-Sale (or mPOS) industry has been and grows because it allows retailers to accelerate the checkout process and mitigate queues and lines.  All this while ensuring that they provide a more modern payment solution to their customer base.