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The payments industry is developing rapidly. To stay relevant, you should be aware of the latest trends. In this article, we will discuss the six most important ones.
P2P Payments
Peer-to-peer (P2P) payments let you send money directly to others, keeping your account details confidential. To create a transfer, you need the e-mail or phone number of the recipient.
PayPal and Venmo are the most famous P2P solutions. Their users can withdraw money to personal bank accounts, split checks between several people, pay for services, or send money abroad.
Embedded Payments
Built-in payments allow customers to make payments directly on websites or apps with a few clicks. Amazon, with its Buy Now button, was one of the first to implement this feature.
Embedded payments make the user experience smoother and increase customer satisfaction. As a result, businesses get an improved conversion rate and retention.
Another related possibility is the Buy Now, Pay Later (BNPL) model, allowing customers to split the payment into parts.
Contactless Payments
The contactless payment method involves radio frequency identification or near-field communication (NFC). It is more secure than using cards with magnetic stripes, which fraudsters can steal and clone. The information sent through the terminal through contactless payment is encrypted.
The most popular contactless payment methods are credit and debit cards with NFC and mobile wallets. Mobile wallets store card data directly on the mobile device. The popular options include Apple Pay, Google Pay, and Samsung Pay.
Open Banking APIs
With open banking APIs, third-party service providers gain access to banking data and services. With the consent of all parties, of course. It allows you to stimulate innovation and competition and improve the quality of customer services.
Banks and financial institutions monetize their data and services by charging for API usage. The expansion of the service portfolio is another bonus of such a partnership.
Blockchain
Core blockchain principles include distributed ledger technology, immutable records, and smart contracts. With no centralized database, you don’t need intermediaries, and transaction information cannot be faked. In addition, transactions can be automated after meeting a specific condition.
As a result, you get increased security, lower fees, and faster cross-border transfers.
Biometric Authentification
Biometric authentication allows software to identify a person using one or more biological traits. You’ve surely faced apps that ask for a fingerprint, retina pattern, face scan, or voice recognition to verify your identity. It is the safest way to protect your data from fraud.
In finance, biometric authentication is often used in banking applications to access an account or conduct a transaction. However, bank branches and ATMs also employ this technology.
Want to create an innovative banking solution from scratch or conduct system integration for existing software? Contact S-PRO to discuss your needs.
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