Over the past few years, the evolution of digital payment methods has made global payments better, faster, and simpler. In this blog, we talk about the top 7 payment trends that 2023 will see.
When it comes to digital payments, the future is now!
We're living in a world where cash and cards are falling by the wayside as more and more people are adopting digital wallets, contactless payments, and other modern payment methods. If you want to stay up with the trends, you'll need to keep your finger on the pulse of digital payment trends—and that's what we're here to help you with.
In this article, we'll explore some of the biggest developments in digital payments over the last few years and the trends that we expect to see in 2023. We'll look at everything from mobile apps to digital wallets, enabling you to stay informed and make smarter buying decisions. So whether you're a savvy investor or just looking to optimise your daily spending habits, let's dive into what you need to know about digital payment trends!
What counts as a digital payment?
In simplified terms, digital payment is any type of money transaction that happens online or electronically. This includes everything spanning online banking services, credit and debit cards, mobile payments, e-wallets, and even peer-to-peer methods like PayPal.
In layman’s terms, you can say, if the payment is not cash or anything physical (cheque or overdraft), it's a digital payment.
Overall, digital payments are fast and convenient, offer better tracking and reporting capabilities, as well as improved security features compared with traditional methods. Additionally, many providers offer special rewards and discounts for customers who use their digital payment services which helps customers, especially students in significant cost savings.
7 best digital payment trends
Let’s look at the 7 best digital payment trends to watch out for, in 2023.
1. Contactless Payments: Virtual cards and Digital Wallets
A large number of people use mobile payment applications and digital wallets to pay for their day-to-day transactions. Reasons: ease, speed, and convenience. What makes this payment popular is how not-so-tech-savvy people can use it with ease.
2. AI-secured payments
AI algorithms, along with machine learning algorithms are used by digital payment providers to make transactions more secure. Primarily, these are used to increase security by identifying unusual activities or transactions.
3. Biometric authentication
Biometric authentication is the process of using physical traits such as fingerprints or voice recognition systems to authenticate a person’s identity before allowing them to make a purchase or payment digitally. This form of authentication is considered much safer than traditional methods as it cannot be easily hacked or copied as passwords can be.
4. Cross-border payments
With globalisation at the centre of everything, many people stay in different countries for work, jobs, and other reasons. Some need to send money home while others want to receive it, and this is where cross-border payments help. You can easily send and receive money online and that too in real-time.
5. Peer-to-peer payments
Peer-to-peer payment methods enable you to send money directly from one person to another, without using a third party. Suppose you go to a party, your friend pays the bill and later, you’ve to pay her back. What do you do? Open an app, add an amount, and pay. SIMPLE!
6. Buy-Now-Pay-Later (BNPL)
A payment method that allows you to buy something at the moment, and pay for it later. A trend much popular among students and newly joined workers, this trend is growing rapidly around the world.
7. Payment using QR codes
The small dots making a square – you might have seen one of those around you. Popularly known as QR codes, these are one of the widely used digital payment methods. All you’ve to do is scan the code and pay the amount – easy and simple.
Benefits of digital payments
Compared to cash, checks, and other traditional methods, digital payments come with many great benefits. Here are four of the biggest advantages of going digital:
1. Convenience: Digital payments are quick and easy to handle, and they can be done from anywhere with just a few clicks.
2. Security: Thanks to encryption and other security measures deployed by providers, digital payments are more secure than ever. In many cases, they are safer than using cash.
3. Tracking and Recordkeeping: With digital payments, there's an integrated tracking system that allows customers to keep track of their transactions easily. Moreover, many providers also share monthly records, the facility to record repeated payments, reminders, etc. to make it even more convenient.
4. Cashless Society: Digital payments are making our society increasingly cashless – no more waiting in long lines at the bank or ATMs. A cashless society, in turn, helps more businesses to grow rapidly, and hence, a growing economy.
What lies ahead for digital payments?
If you’re not someone living under a rock, you already know how digital payments are becoming an increasingly vital part of our lives. From food deliveries and electricity recharge to remittances, everything can be paid for digitally, in less time.
So the question comes: what lies ahead for digital payments? Here are a few of the trends that we can:
1. Instant Payments
Instant payments are on the rise, with transactions taking place in just seconds. This trend is being fueled by the prevalence of mobile devices and smartphones and the ability to conduct financial transactions on the go, quickly and securely. This is great news for businesses looking to streamline their payment processes and offer customers faster, more convenient payment methods.
Automation has already taken off in many areas, including payments. Businesses are increasingly turning to automated payment systems that eliminate manual data entry and help them process payments quickly and accurately. Automation will also help to reduce transaction costs, making digital payment more attractive for businesses dealing with high volumes of payments. Remember Netflix and Spotify subscriptions that get debited monthly?
Biometrics are being adopted in increasing numbers as a way to securely store and access customer data, such as banking information or payment credentials. With biometric data like your thumbprint or face scan, you can ensure all your confidential information is kept safe from fraudsters–no more worrying about identity theft!
It looks like 2023 will be a big year for digital payments—are you ready?
So there you have it—all the digital payment trends to watch out for in 2023. It’s clear that this is a quickly evolving space, and there are plenty of new technologies and solutions in development.
The key to success, then, is in staying up-to-date with changes in the industry. You’ll have an advantage if you can recognise changes early on, and adapt yourself.
There’s no doubt that digital payments or trends in digital payments will continue to evolve. As they develop, it’s absolutely alright to be a little cautious. Like with any new thing, people have a lot of questions about how safe it is or how big it is, and if it should be even tried.
Here are some of the frequently asked questions that might help you make these decisions:
1. Why are digital payments more convenient?
When we talk about the conveniences of digital payments, the biggest one is about the ability to pay from anywhere and anytime (Imagine knocking on a bank’s door at night because you want to buy something from Amazon).
What comes second for us is the facility to track and report payments over time. You can know how much you spent, where, and when, all this, and more without keeping a journal.
Bonus point: Many providers offer special rewards and discounts for customers who use their digital payment services which can result in significant cost savings.
2. How do we make digital payments more secure?
A few tips to keep your payments secure: always use a trusted provider, use a stable internet connection while making payments, avoid paying to any unknown accounts, and enable biometrics to prevent any identity theft.