The cashless payment strategy is growing exponentially with evolving payment methods, rising e-commerce use, enhanced broadband connectivity, and emergence of new technologies. Can increasing incidences of cyberattacks and spams hamper the expansion of online payment market or does it expanding with a rapid rate?
The global digital payment market is likely to hit the USD6.6 trillion mark in 2021, registering around a 40% start couple of years. The cashless payment methods are rapidly evolving with ground-breaking innovations for example mobile wallets, peer-to-peer (P2P) mobile payments, real-time payments, and cryptocurrencies. In the growing digital age, many payment technology organizations are collaborating with traditional financial institutions to focus on the most up-to-date consumer and merchant preferences. On account of enhanced broadband connectivity, increasing mobile commerce, emergence of recent technologies for example Virtual Reality, Artificial Intelligence, and rapid digitization, vast amounts of everyone has started embracing contactless payments in both developed and emerging countries. Besides, surging e-commerce businesses, digital remittances, digital business payments, and mobile B2B payments are boosting the non-cash transaction ecosystem.
Cashless transaction method users across various generations are widely adopting the digital peer-to-peer (P2P) apps as they are more pleasing and versatile to make use of. In-app payments or tap-and-go transactions take seconds with the checkout and permit users to make payments anytime and anywhere. Tokenization, encryption, Secure Sockets Layer (SSL), etc., offer multiple ways of securing payments while enabling digital transactions. Moreover, the users need not fill in information whenever to perform the payment process. Thus, online payment gateways play an important role within the economic growth, enabling trade-in the present day economy. With social distancing rules in place, digital payments are getting to be a responsibility for contactless transactions rather than a transaction replacement for stop the spread of coronavirus.
Digital Commerce Empowering Businesses
Electronic payment systems are getting to be an important part of companies as consumer inclination towards online shopping is expanding. With broadening internet penetration, increasing usage of smartphones, and diverse options for e-transactions, most individuals are preferring online channels over traditional brick-and-mortar stores for shopping. Therefore, businesses are shifting online with the electronic payment strategy to maximize their profit earnings. Automating the electronic payment system eliminates the scope of errors and saves a considerable amount of time and energy. High standards for detecting and preventing fraud in digital transaction systems and AI-based fraud detections protect users from security breaches. Through providing the flexibleness for making payments through credit/debit cards, mobile money, e-Wallet, etc., the firms can expand their subscriber base. The electronic payment process improves client satisfaction as customers need not count cash or take care of paperwork every time they desire to make the transaction.
Biometric Authentication Enhancing Security
Biometric authentication involves recognizing biometric features and structural characteristics to ensure the identification associated with an individual. The verification method can involve fingerprint scanning, facial recognition, voice recognition, vein mapping, iris detection, and heartbeat analysis. With all the rise in identity theft and fraud, biometric authentication has developed into a reliable and secure alternative for making digital transactions. According to a recently available research, biometrically verified mobile commerce transactions are hoped for to constitute a tremendous 57% with the total biometric transaction by 2023. Biometric payment cards will also be becoming popular since they support tap-and-go payments, allowing users to produce faster digital transactions. The digital payment technology provider, Worldline is joining up using the French FinTech, A3BC (Anything Anywhere Anytime Biometric Connection), to guard mobile phones from intrusion which has a two-factor authentication process. The combined solution eliminates identification through a single touch, rather it recognizes fingerprints by way of a picture in the hand. MasterCard is intending to bring FinGo’s vein-scanning payment solution that facilitates users to authenticate transactions.
Dominance of Mobile Wallets
In 2019, mobile wallets overtook bank cards for being the highly adopted payment type globally. Digital wallets offer flexibility to users to save multiple payment methods a single digital home change cash into electronic money necessary for online or in-store purchases. Banking institutions previously did start to embrace a digital wallet trend by providing virtual cards to business customers. The virtual cards stored in digital wallets incorporate details like 16-digit card number, CVV code, date of expiry and work similar to the physical charge card. Currently, only 37% of merchants support mobile payments in the point of sale, however with the increasing adoption, merchants are prepared to purchase technologies facilitating digital wallets. The virtual wallets can help to conserve money due to low processing costs as they limit transaction values and frequency. Artificial Intelligence (AI) is improving the buyer on the subject of transactions with ChatBots, meant to execute and robotize essential exchanges as reported by the user’s interest. Besides, cryptographic money-based e-wallets are being embraced by new companies to small-medium organizations for storing digital money. Smart voice technology is adding to the growth of smart voice wallets since that time Amazon propelled the key of the platform, that is now being followed by Google and Apple.
E-Commerce Boom Accelerating Digital Payment Market Growth
E-commerce growth with an exponential rate is creating shock waves, and also the sonic boom is reverberating across the FinTech sector. The expansion of many e-commerce companies is driven through the type of financial services they provide. Digital transactions help it become convenient for the seller and buyer to make transactions and grow loyal to industry space. The COVID-19 pandemic added some other dimension to e-commerce innovation, introducing newer trends for example payment alternatives at checkouts (steer clear digital wallets), virtual cards, QR codes, as well as other touchless transactions. Besides, the Buy Now Pay Later (BNPL) trend is dominating the e-commerce industry as it relieves the financial burden on the buyer. BNPL involves a gentle credit assessment, hence the consumers can buy what they really want, keep your inventory moving, and pay overtime without having affected their credit score. BNPL provides businesses with much-needed liquidity and greater flexibility with the checkout.
Influence of COVID-19 Pandemic on Digital Payment Market Growth
Digital payment systems have moved beyond their peer-to-peer (P2P) transfers and bill payments. The COVID-19 pandemic allowed digital payment systems to showcase their strengths, for instance a strong idea of hyper-local markets and its ability to establish strong local partnerships. Businesses and consumers increasingly “went digital” for providing and acquiring products and services online. If the pandemic hit, people would not need to touch or exchange cash due to the paranoia of catching the issue from physical currencies. Several governments worldwide introduced digital financial gets in provide COVID-assistance. Owing to lockdown measures, consumers shifted to online platforms, which catapulted the interest in digital payment systems. Now, digital platforms are getting to be an essential component of people’s lives, and consumers are more likely to continue online shopping in the post-pandemic period. The dramatic change in consumer behavior will probably augment the requirement for e-payment systems much more. Therefore, information mill focusing their attention on digital mediums to fulfill the brand new customer demands and thrive businesses inside the changing market scenario. Organizations are reimagining customer journeys to reduce friction and still provide new safety measures. Payment companies like PayPal and Square Cash are staffing up overall to improve comprehend the rearrangement of societal norms and stabilize the company soon.
e-Payment Systems would be the Future
With increasing smartphone and internet penetration, individuals are becoming tech-savvy, which presents endless opportunities for the digital payment markets. Post-pandemic, digital payment systems are supposed to still flourish through the years ahead. While cards remain the first choice for payments around the globe, mobile wallets are quickly gaining traction. The original earnings is declining in bank branches and ATMs, demonstrating an energy move towards a cashless society. Currently, China dominates the international mobile wallet consumption, then South Korea. However, you may still find many countries that are highly dependent upon cash on account of not enough trust towards loan companies and deficiency of proper broadband infrastructure, etc. In the future, social media-initiated payments, biometric payments, voice-activated payments will probably become mainstream in developing countries at the same time.
Cybersecurity and Privacy Concerns with web Payment Solutions
Cybersecurity and privacy threats are becoming a troubling nervous about the increasing incidences of internet fraud. In line with the Mastercard survey, one in four consumers experienced some sort of fraud in 2020, ramping the cybercrime rate by 49%. Inside the first 50 % of 2020, online scams increased by 73.8% from 2019. However, adopting new-age technologies including multifactor authentication, biometrics, 3D security, Artificial Intelligence, and Machine Learning will help control fraudulent activities such as phishing, virus attacks, etc. Shifting to contactless cards, QR codes, and tokenization could also help mitigate risks connected with digital payment solutions. Besides, sensitizing end-users regarding the secure use of e-payment solutions through amplifying efforts towards building financial literacy will help prevent frauds. The emergence of mobile commerce and the evolution of e-payment platforms supported by robust security solutions can help drive the aim of making the economy truly cash-less.
In accordance with TechSci research directory of “Global Payment Gateway Market By Type (Hosted, Self-hosted & Bank Integrated), By Enterprise Size (SME and Large Enterprise), By End-User (Retail, Travel & Hospitality, Healthcare, Education, Government, Utilities & Others), By Region, Competition, Forecast & Opportunities, 2026”, the international payment gateway market is expected to cross USD15 billion mark in 2019, registering a CAGR of 22% by 2026. The increase can be attributed to the growing requirement for online transactions, rising broadband connectivity, and exponential development of e-commerce across the world.
For additional information about instant withdrawal payment gateway check out the best resource: click site