6 Factors Determining the Future of Digital Payments
The surge in technology has led to increased growth in digital payments. Online payments are here to make lives simpler and convenient for customers. Whether, it is about paying the vendors, customers, or transactions from the international borders, digital payments are here to help in every facet.
With the introduction of Custom payment solutions, digital payments are becoming more widespread and popular. Growing digital payment companieshave also played a significant role in this field by introducing wallets, UPI payments, and other new payment methods.
Today, digital payments are one of the most preferred ways of payment. In this article, we will be discussing the five factors that have been determining digital payments and their growth.
Five key factors:
Technology
According to research the use of mobile phones and the internet is going to increase to 3 billion users which are around 65% of the adult population. Does this mean an increase in digital payments too?
Considering that customers are now easily accessible on smartphones, payment companies would be working to provide their services to more individuals. And to do so, technology can be their best aid.
With the ever-increasing scope of technology, companies can articulate new forms of payment, or provide reliable and trusted sources of online transactions. Online payments would become more secure, user-friendly, fast, and effortless.
How can improved technology help payments?
- It can help with increased accessibility to payment
- Advance technology can introduce convenient payment methods.
- They offer safer and faster transaction methods.
- Improved payment acceptance with globally credited reliable solutions.
Security
While digital payments have been a boon for society, it lacks precision when it comes to security. Digital payment methods have been under constant threat of cyberattacks. Most leading digital payment companies have introduced many security measures to ensure the safety of users and trusted payment procedures. In the coming future, a major task for these companies would be to ensure the privacy and security of their users from such threats. It would also enable safe and secure payments.
One such secure method introduced is digital wallets. It increases transaction security because the wallet is encrypted and does not share any user or payment details with third-party websites or alliances.
How can security be ensured?
- Using security codes over your apps
- Applying PIN over all the payments made via UPI
- Never share sensitive information like OTP
Engaging offers
Custom payment solutions that allow payments from multiple sources like net banking, UPI transactions, cards, and tap and pay systems have increased competition among payment companies.
With the driving demand and competition, companies provide exciting offers to users such as cash backs, gift hampers, and discounts on purchases that attract customers towards digital payments. Such engaging offers from companies inspire customers to switch toward digital methods of payments instead of the traditional ones.
CONVENIENCE OF USERS
The whole point of using digital methods as a mode of payment is the convenience it provides. Hence, it is one of the crucial factors defining the future growth of digital payments. Online payment providers continuously strive to make their applications easy to use, navigate and make transparent transactions. With the introduction of voice payments and facial recognition services, these companies increase user convenience in making payments digitally.
Digital payments help customers to eliminate the need for a physical wallet. It also helps them manage their bank accounts, credit cards, debit cards, bills, and mobile accounts available under a single umbrella. Customers can also check for outstanding balances without having to update their passbooks.
How does digital payment make it convenient?
- Providing augmented security.
- Easy to use.
- Overseas transactions are made convenient.
Government Policies
To encourage cashless transactions and protect customers’ interest using digital payment methodologies, the Government has always been keen to provide strict security policies that are mandatory to abide by all payment merchants.
The Government is currently making its efforts toward building a cashless society. With the adoption of digital payments, the Government is also taking a necessary step toward building a robust economy. It will also encourage enhanced transparency in economical growth.
Crisis hours
Another condition that has accelerated the growth of digital payments is demonetization and pandemics. It is during this period that people gradually embraced digitization and online payment methods. Even startups, eCommerce businesses, and larger enterprises have shifted to accepting digital payments worldwide. They ensure to keep the data secure and provide protected transactional forums.
Hence, the factors listed above are hugely responsible for contributing to the growth of digital payments. Furthermore advanced technologies, embedded security, and impactful policies will only make the growth faster and better. The various solutions for digital payments are only here to provide ease and convenience to a larger chunk of customers and enterprises. These solutions are well-researched and must be considered by every payment startup and enterprise looking forward to building payment solutions.
