Customers are shifting from cards to QR code-based transactions, adapting traditional methods to digital transformation. Conventional payment providers have partnered or invested in digital wallet platforms to keep up with changing trends.
Fremont, CA: As the digital revolution has taken over the world, payments have gone cashless, and e-commerce has taken a giant step forward. As a result of these digital transactions, businesses can now implement their business strategies in new ways, thus promoting the digital economy. Cashless payments are becoming more common today, and conventional methods have become digital, allowing contactless payments to become the norm of today. Accessibility of the mode is a significant influencer in the e-commerce surge; the pandemic surely transitioned the payment method from the physical domain to digital.
Some key trends are:
Digital currencies – CBDCs or central bank digital currencies are digital tokens or electronic records representing the virtual form of a nation’s currency. Private-sector crypto-currencies are predicted to have the most significant disruptive impact over the next 20 years. Financial institutions, such as Mastercard, Visa, and BNY Mellon, are already preparing to facilitate CBDCs. A recent Bank for International Settlements survey suggests that 60% of central banks are considering CBDCs, and 14 percent are actively conducting pilot tests.
Digital wallets – Digital wallets allow customers to store money on their devices through their sources of funding, such as cards and bank accounts. Applications such as Google Pay and Apple Pay have revolutionized payment with their accessibility and ease. Customers are shifting from cards to QR code-based transactions, adapting traditional methods to digital transformation. Conventional payment providers have partnered or invested in digital wallet platforms to keep up with changing trends.
Financial crime – The pandemic drove e-commerce, which also presented fraudsters with the opportunity to capitalize on the new trend. There was a 70 percent increase in fraudulent transactions in 2020 compared to the previous year. Security, data privacy risks, and related issues were primary concerns for banks and asset managers. These potential risks allowed us to implement safer practices and better technological strategies. This paved the way for collaborations among banks, payment gateways, and the public sector to minimize fraud or money laundering.
