TOP 9 TRENDS IN DIGITAL PAYMENTS

Trends in digital payments are gaining prominence, with the global industry projected to reach $14.78 trillion by 2027. With convenience, efficiency, and security, digital transactions are becoming more popular. To dominate the fintech industry, companies must stay updated on the latest developments and trends in digital payment patterns.

This article gives insights into the leading 9 digital payment trends anticipated in 2024.

Overview of trends in digital payments

The expansion of digital payments facilitating seamless transactions is expected to continue in 2024. According to the CFPB Report, consumers spent almost $300 billion using tap-to-pay options in the U.S. Technology and evolving consumer preferences are rapidly changing the payment space. Consumer demand for convenience, efficiency, choice, and security are several of the factors that continue to impact significantly the way people pay for things.

What are the advantages of digital payment?

The increasing preference for online payment has necessitated businesses to adapt to digital payments to remain competitive. Digital payments provide a rapid, convenient, and safe method for purchasing items online. This makes them a superb choice for anyone interested in online shopping. If you’re a business owner, it’s important to know about digital payments.

The benefits of digital payments are :

• Convenience: Digital payments offer convenience for both customers and merchants. Because they can be done anywhere and at any time.
• Faster transactions: Digital payments reduce checkout time and improve business cash flow.

• Easier to track: Digital payments provide a digital record of every transaction, making monitoring and managing finances easier.
• Enhanced security: Digital payments offer higher security than cash, as they eliminate the risk of losing money or getting fake currency.
• Increased customer experience: Digital payments enhance the customer experience by offering more payment options and eliminating barriers to sales.
• Global reach: Digital payments allow merchants to sell to other countries and customers to pay in foreign currencies.

What are the types of digital payments trending in 2024

1. Biometric authentication

Biometric authentication is a new way to keep your digital payments safe. It’s like a secret code that only you can use to pay for things online. Biometric authentication uses things like your face, fingerprints, and eyes to make sure it’s really you who’s paying. This makes it harder for money laundering activities.

Biometric authentication is becoming more popular because it’s very secure. It’s so secure that it’s almost impossible for someone else to use your payment information. This proposal is very commendable for those who have a keen interest in engaging in Internet transactions.

One of the new ways to use biometric authentication is called liveness detection. This is when your device takes a picture of you to make sure you’re really there. It’s like a game where you have to do different things with your face or your voice to prove that you’re not a robot. This is one of the new trends in digital payments for 2024 and beyond.

2. Voice-based payments

AI has revolutionized technology, introducing voice-based payments, a unique method of online transactions. These payments are akin to a secret code, and experts predict that by 2024, more people will be using voice-based payments for online purchases.

Grand View Research shows that the global voice payments market is expected to be worth $14.66 billion by the year 2030! This makes us think that voice payments will become even more popular in 2024 and beyond.

The convenience and rapidity of voice-based payments are contributing to their increasing popularity. It eliminates the need to type or use a credit card. Users simply say their desired purchase and their device handles the rest, making it an ideal online shopping option.

3. Smart speaker payments

Big companies like Amazon, Google, and Apple develop popular smart speakers. They are interactive devices providing various services such as weather updates, directions, food ordering, and Uber rides. It makes them a valuable tool for Gen Z users.

Smart speakers, formerly confined to mobile devices, now operate with a wide range of domestic objects. According to Statista, 35% of people use smart speakers to buy things like groceries, clothes, and cleaning supplies.

Smart speakers are also used for digital payments. The essay proposes the possibility of using one’s voice chords as a means of payment rather than depending on a credit card. In December 2022, Turkey and France launched a new way to pay called a voice payment card. This is a new way to pay for things in a store using your voice. Lots of banks and other companies are working on new ways to use smart speakers for payments.

Smart speakers are enhancing their capacity to comprehend and distinguish persons via speech recognition, therefore enhancing the safety and efficiency of online payments.

4. Central Bank Digital Currency (CBDC)

A central bank digital currency (CBDC) refers to a digital representation of physical money that is issued by the central bank of a country. Nations are creating their own digital currencies to simplify and decrease international transaction expenses.

For example, India’s Reserve Bank will introduce a digital rupee sometime in the 2022 to 2023 financial year, which begins April 1, 2022. Russia’s central bank has also announced plans to launch a digital ruble. Other countries that are exploring issuing a CBDC include Brazil, China, the euro area, and the United Kingdom.

CBDCs can help reduce the cost of payment services, promote competition among financial institutions, and provide a convenient means of payment to citizens in territories with limited access to financial infrastructure.

5. Foolproof security with AI and machine learning

Artificial intelligence (AI) is a new kind of technology that’s becoming more and more popular. It’s like a computer that can think and learn like a person! The global AI market was worth $150.2 billion in 2023, and it’s expected to be worth $1354.2 billion by 2030!

AI and machine learning (ML) are also being used to make payments more secure. They can help make sure that it’s really you who’s paying for things online. They can also help detect fraud and other bad things that might happen.

Visa is one company that’s using AI to make payments more secure. They focus on three main things: account onboarding, authentication, and authorization. This means they’re making it easier and safer for people to pay online.

They’re also using AI to help detect fraud and other bad things that might happen. This feature makes it a superb option for anyone with a penchant for Internet commerce.

6. The dominance of mobile wallets

Mobile wallet payments are one of mobile payments trends. They’re already very popular, and they’re going to become even more popular in 2024! Presently, the worldwide use of mobile wallets is at over 2.8 billion.

Mobile wallets provide a rapid and secure digital payment solution, enabling customers to make transactions just by tapping their phone. This makes it easy for both businesses and customers. Mobile wallets can use different ways to pay, like NFC, QR codes, and more. In addition, they have the ability to provide incentives for maintaining consumer loyalty.

Juniper Research highlights that people spent $9 trillion using mobile wallets in 2023! Experts think that by 2028, people will spend $16 trillion using mobile wallets. That’s a 77% increase in just a few years! The growing prevalence of mobile wallets is apparent. They’re a great way to pay for things online.

7. Contactless payments

Contactless payments are a new way to pay for things online. They’re becoming more and more popular in 2024! You can use your phone or a special card to pay for things without tapping to pay. This makes it faster and easier than using cash or swiping a card.

Big companies like Visa, Mastercard, Samsung, Apple, and Google are making it easier for people to use contactless payments. They’re making special cards and apps that you can use to pay for things without touching anything.

To use contactless payments, you need to download a mobile app and add your card information. Then, you can use your phone or card to pay for things without tapping to pay. This makes it faster and easier than using cash or swiping a card.

Contactless payments are becoming more popular because they are easy and fast. They’re a great option for people who want to buy things online.

8. Buy Now, Pay Later (BNPL)

One of the new ways to pay for things online is called Buy Now, Pay Later (BNPL). It’s like a secret code that only you can use to pay for things online.You have the option to make a purchase now and defer payment at a later time. Experts think that by 2027, almost 900 million people will use BNPL to buy things online!

BNPL is becoming more popular because it’s affordable and easy to use. It’s also a great way for stores to sell more things and make more money. BNPL is a good option for everyone who wants to buy things online.

BNPL is especially popular with young people who like to shop and older people who don’t have a credit card. In the future, BNPL might even replace traditional credit cards! This means that more and more people will use BNPL to buy things online.

9. Mobile point-of-sale (mPOS)

Mobile point of sale (mPOS) is one of the trends in digital payments for businesses. It’s like a cash register that you can take with you anywhere! You can use your phone or tablet to process payments from customers.

Experts think that the mPOS payment market will grow a lot in the next few years. By 2027, it’s expected to be worth $5.52 trillion! This means that more and more businesses will start using mPOS to accept payments.

mPOS includes different ways to pay, like payment cards, mobile wallets, and QR codes.It can also work offline and connect to other software to help businesses keep track of their money.

Businesses are using mPOS to make it easier for people to buy things. This makes customers happy and helps businesses make more money. It’s a great way to buy things on the go!

Trends in digital payments are expected to shift in the future. These trends will significantly impact future digital payment solutions, but their exact nature remains uncertain.

DNBC Financial Group recognizes the importance of staying updated on trends of digital payment to ensure efficient global business operations. To achieve this, the company regularly conducts market research and analysis to identify emerging technologies and payment methods.

Additionally, DNBC actively partners with fintech companies to leverage their expertise and stay at the forefront of digital payment innovation. By remaining informed and adaptable, DNBC Financial Group can effectively utilize digital payments to enhance speed, convenience, and security in its international transactions.