The e-commerce sector is snowballing, with worldwide sales hitting a record $4 trillion in 2020. The success of the e-commerce industry should be partially credited to the developments within fintech or financial technology.
Fintech has introduced the world to innovative payment methods, including contactless payment options, scan and pay, cryptocurrency, and so on. People have been extremely keen on learning these new technologies and making their lives easier.
According to an AMEX survey, there was a significant rise in consumer attitudes regarding online payments in the United States. The number of customers using contactless payments in online and offline stores increased by almost 11 percent between August 2019 and April 2020. This growth has been more or less mirrored by other countries as well.
As consumers have become increasingly comfortable with these innovative payment options, traditional banking faces serious competition. It is also anticipated that by 2030, online payment models will replace centralized financial systems altogether.
7 Innovative Ways To Pay Online
As we mentioned, Fintech trends are rapidly evolving. Across the globe, the popularity and use of contactless payments are on the rise, and they will soon replace the traditional banking systems.
On that note, here are 7 best payment getaways of 2022 so far:
1. Buy Now Pay Later (BNPL)
The concept of lending is not new to the currency world. Recently, a Sweden-based Fintech company called Klarna has launched a modern version of lending money online. Buy Now Pay Later or BNPL, whereby the firm grants credit terms and allows customers to pay for goods and services in installments.
The concept is similar to that of a traditional credit card but without the hassle. Since its launch, Klarna’s BNPL has attracted almost 90 million customers within Sweden and more than 250,000 customers worldwide.
BNPL has become widely popular in Mexico too. In Mexico, 60 percent of the population lacks equitable access to banking services. Kueski, a Mexican firm, is trying to bridge the gap and make financial services accessible by introducing BNPL solutions. The CEO of Kueski, Adal Flores, has stated that soon BNPL solutions will become integrated into other financial ecosystems, allowing customers to make interest-free purchases and pay in installments.
2. Contactless Payments
After the COVID-19 crisis, customers are seeking solutions that will reduce physical contact at the point of sale (POS). This has been deemed as an important health and safety measure to fight the transmission of the virus. Thus, retailers are increasingly adopting contactless or touchless payment systems.
These services allow customers to buy goods or pay for services without physically having to enter their PIN onto the card reader. This contactless payment system can be adopted both online and offline.
3. Mobile Payments
Mobile payments have further popularized contactless payments. Apps like Google Pay and Apple Pay are making finance easy and challenging key players like banks and credit card providers. Nowadays, customers can easily pay through mobile wallets, scan QR codes, or enable “shake to pay”. Online businesses, including online casinos, are progressively using this, and you can now directly pay and play without any hassle. Online casinos have also started to diversify and accept different payment methods, which isn’t the case with some of the other industries.
For example, DraftKings casino payouts allow its users to use online banking services and Pay Pal to eliminate the use of credit or debit cards. Funds are transferred electronically and instantly from your bank account to the DraftKings bankroll.
This is an extremely easy-to-use payment method, and through DraftKings, users can rest assured that their payment methods are 100 percent secure. A variety of payment gateways that are secure and customizable is what makes DraftKings one of the more popular online casino sites.
Many have regarded cryptocurrency as the future of digital payments. According to Fintech experts, soon, there will be enough flexibility in using crypto as a part of the currency bundle, including user cash, credit, etc. Already with the systems in place, people can apply for loans in crypto. Besides, Elon Musk also announced that Tesla has started accepting payments in cryptocurrency.
However, the cryptocurrency trend is still in its infancy and hasn’t developed adequately. It will take a couple of more years to be fully integrated into global financial systems and implemented in modern economies.
With that being said, consumers can start investing in crypto strategically to reap its benefits.
5. Facial Recognition
Many fast food outlets and grocery franchises have started replacing manual human cashiers with self-service kiosks in the past few years, and Shake Shack and Amazon Groceries were the first to lead the way. Thus, if things go as anticipated, the next logical step will be paying through a simple face scan.
Although not completely, Apple Pay has somewhat integrated the facial recognition feature in its in-built system. Facial recognition payments aim to replace the traditional credit card swipe with an effortless face-based payment.
CaliBurger, a California-based burger joint, is already beta testing such a feature. In addition, biometric payment systems have already started flourishing in Shanghai, China, and these have been met with numerous positive customer feedback. Hundreds of restaurants and shops across the country plan to launch this feature by the end of 2024.
6. Payment Processing and Interoperability
Online businesses worldwide are gradually shifting to merchant account providers like Paysafe, Stripe, and Square to accept virtual payments. These merchants provide battery and Bluetooth-powered card readers with the capacity for point of sale applications. They are also compatible with most contactless NFC transactions either by using physical payment cards or mobile wallets (Apple Pay, Google Pay, etc.).
This is a massive trend that will become more and more popular in the coming years. Charlie Wright from Epos Now has noted that this will be adopted with integrated payment systems in the upcoming years. Merchants will also start integrating third-party payment options on their respective platforms.
7. Voice Command
Live at over 11,000 Mobil and Exxon gas stations across the United States; customers are now allowed to use Amazon’s voice command feature to pay for gas. Customers have to simply say “Alexa, pay for gas” to begin the payment process. Alexa will then use the location feature to confirm the station, pump number and activate the pump. It is an effortless way to pay for gas, and it works on all Alexa-enabled devices across iOs and Android.
These were some of the best innovations in the field of e-payments.