In the middle of chaos, digitalization has always discovered a way. During the COVID-19 outbreak, technology flourished. From no physical contact to digital transactions, the term of the year was contactless. Digital wallets have entirely taken over in the post-pandemic era. With large brands and eCommerce businesses promoting no-contact transactions, this payment method has gained popularity among the general public. Moreover, now even tiny companies are accepting digital payments, it is easy than ever to travel cashless.
Surprisingly, there have been over 779 billion digital transactions in fintech globally in2020 and this figure is forecasted to increase at a 13% annual rate in the subsequent years. As the trustworthiness of digital wallets grows by the day, it will be interesting to watch what the future of payment looks like.
In this blog, we will look at the e-wallet trends & the future of digital payments.
1. More Relying On The Cloud
Every aspect of digitalization is reliant on the cloud. Companies are likely to integrate more of their digital wallets with the cloud, even in e-wallet apps where late payments can pose problems for users. The issue of late payments is one of the most serious issues that arise in online transactions. The use of a network of distant servers can help to lessen this.
2. NFC (Near Field Communication) Based Payment To Gain Momentum
In recent years, we’ve seen an increase in transactions where you can pay with your card by simply tapping it. NFC is at the foundation of this technology, which will experience rapid growth in the next years. Because NFC delivers encrypted data to the POS device quickly. It is far more advanced than standard PIN technology. According to UK Finance, NFC-enabled contactless cards will account for 36% of all payments by 2027.
3. Voice-Activated Payments Are On The Rise
Voice-based technologies like virtual assistants have become the norm for many consumers in developed and emerging nations, as the demand for convenience grows. More apps may be integrated with the phone’s voice AI, or possibly come with their voice payment capabilities.
The consumer experience has been enhanced to a previously unreached degree as a result of this innovation. Many users around the world have grown accustomed to and rely on these devices to complete their daily duties. According to a poll, the number of people who use digital assistants will reach 1.8 billion by 2021.
4. Biometric Authentication Will Become More Common
The rising use of digital payments has automatically led to an increase in their safety and security. Given the possibility of fraud and theft, biometric-based authentication may become more prevalent in digital payments this year. Biometric technology replaces passwords with techniques such as fingerprint scanning, facial recognition, heartbeat analysis, and others that are unique to each user. According to Biometric Update.com, usage will significantly raise because approximately 2.5 million biometric payment cards are expected to be issued this year. The above rise ensures that transactions are safer and more efficient.
5. Growth In QR codes
Daily, we conduct a large number of online transactions, and it can be disturbing to give out your phone number to random people. QR codes try to keep it simple to scan and make payments while also minimizing the likelihood of error that might take place when providing a number. Paying with QR codes has certainly overtaken NFC payments and has become a wonderful means for in-store contactless payments. As it does not necessitate any extra infrastructure. It is also backed by the promotions and offers that are routinely supplied by payment service providers. With 12 million users per week, QR codes have the potential to be a wonderful payment and response mechanism for mobile users. It also provides many potentials uses for shops and service providers.
6. Artificial Intelligence & Machine Learning Come To The Rescue
The development of AI-powered e-wallets that automate routine transactions will make our day-to-day payment activities more convenient. The inclusion of AI and machine learning with digital wallets will aid in the prevention of cyber fraud and theft. It’s not just that, but these technologies will aid in the identification of software threats. The ability of Machine Learning algorithms makes fraud detection with Artificial Intelligence and Machine Learning possible. These solutions allow businesses to track the history of any transaction, learn from fraud patterns, and spot them early enough to prevent future payments. When it comes to processing information, ML Algorithms perform much better than humans.
7. Cryptocurrency Digital Wallet
More than 40 million wallets geared for cryptocurrency transactions have been discovered. This figure, we believe, will rise shortly. Furthermore, the number of users of these cutting-edge bitcoin wallets is rapidly increasing. Additionally, small and medium businesses and entrepreneurs have begun to embrace the bitcoin trend. For digital transactions, blockchain technology and cryptocurrencies have decreased the need for third parties. Furthermore, the user benefits the most from low-cost, secure transactions. As a result, several firms have considered utilizing these bitcoin wallets.
8. Loyalty Programs
Starting a rewards program for customer retention is one of the best tactics for obtaining success in your organization. As a result, your consumers can use digital wallets to obtain rewards, discounts, and offers through this mobile-driven, digital loyalty program.
9. Effects Of Hyperconnectivity & 5G On Digital Payments
Many businesses have begun to rely on new technology to their advantage. Digital payment methods will also affect the speed with which transactions can be completed from any location. Furthermore, IoT-based mobile payments will emerge as future transaction trends. There will be a variety of payment options, all of which will be integrated with the connected devices.
Also Read: eWallet App Development Guide
10. Remittances For Digital Transactions From Around The World
It is a method that allows certain overseas individuals to send money to their near and dear ones who live in their native country. International remittances account for a large portion of GDP in many countries. The international remittance scene has seen a rapid transition as a result of digital technology and Smartphones.
The digital wallet trend is here to remain. And, with so many digital wallet apps gaining traction, the future certainly appears to be cashless. When you recognize the bright future of E-wallets, it’s time to act and turn your financial technology business into existence. Our team would be delighted to assist you in achieving your objectives. Our team is well-versed in the design of e-wallets and has the requisite skills. If you are interested in developing an e-wallet app for your company then get in touch with Emizentech. We are the best app development company serving globally for the past 8 years.