In the rapidly increasing world of finance and technology, the payment sector stands as an ultimate force. Gone are the days when the offline payment method was the only option. With the digital phenomenon reconstructing every sector, the payment sector isn’t an exception.
Making payments in just one click has now been possible. Thanks to the ever-evolving online payment methods. According to recent reports, the digital payment market, a.k.a, online payment, is expected to grow to $14.78 million by 2027 with a CAGR of 11.8% between (2023 and 2027). As the horizon of 2024 comes in, it is vital to be prepared for the ever-evolving changes in this context. Here’s a blog, wherein we will walk you through the recent trends in online payment methods in the spotlight and will continue to be in the future.
What Do You Mean by Online Payments?
Online payments are transactions carried over the internet. These payments are made when you purchase any product or service in any of the ways, by visiting the store and scanning a QR code or shopping online. For example: You order food from the food delivery app and pay online. Besides this, it also includes recurring payments (which means buying a subscription plan). Online payment methods are the new normal and are the fastest-growing technological advancement.
Some Pros of Online Payment Methods
- One of the foremost benefits of online payment methods is faster payments
- Offers a higher level of convenience
- Great customer experience
- Lower transaction rates
- Provides fortified security and prevents fraudulent activities.
Listing Down the Top-Notch Trends in Online Payment Methods
Here is the list of seven online payment methods if you want to stay one step ahead of the digital landscape.
According to records, digital wallets played a significant role in approximately 50% of online transactions in 2022 and are projected to rise to 54% by 2026. The appeal of digital wallets derives from their convenient installation of apps and guiding towards seamless payment processes. This way, you can easily make bill payments, mobile recharges, and a lot more, digitally without the need for any debit or credit card.
Along with the widespread use of AI, biometric authentication is a crucial trend to watch in online payment methods. Smartphones now have built-in authentication features such as facial or fingerprint recognition. It helps to prevent unauthorized access and emphasizes keeping your financial data secure.
Another popular online trend to monitor is the increasing usage of digital currencies. The fact is that technological innovations are giving rise to new advancements every day. Central Banks are bringing in digital currencies and assets as an ultimate solution to different issues like money laundering, and unregulated cryptocurrencies.
Contactless and Mobile Payments
The future of payments is without a doubt contactless and mobile. The rise of NFC technology and the use of smartphones have guided the way for contactless and mobile payments. This is easy, as it is one of the most convenient digital transaction methods. As the name itself suggests, contactless payments allow users to make the payment by simply waving their smartphone near the reader. Contactless payments are more secure and faster than PIN technology.
Buy Now, Pay Later
If you’ve visited an e-commerce site, buy now pay later is the most common online payment method. It lets you make the purchase and then split the complete cost into installments with no interest. The Buy Now, Pay Later trend is expected to reach a global market value of $450 million by 2026. The future looks promising and beneficial for businesses.
Focus on Security and Fraud Protection
As digital payments are buzzing like never, security is something that shouldn’t be overlooked. Proper security measures and fraud prevention measures need to be put in place to have safer transactions and to protect your business from fraudulent activities. People always trust online payment methods that offer the highest security.
Cash and checks are now things of the past. Real payments are those made between the bank and transferred immediately, any day, irrespective of holidays, weekends, and more. This results in faster and more efficient payments rather than spending more time on traditional payment methods.
Summarizing the Blog
The transition from traditional payment methods to online payments is extremely significant and is growing at the fastest pace. As the different payment methods have evolved, businesses, merchants, and individuals need to stay up to date with the recent trends and stay ahead of the competitive curve.
Considering the current scenario, online payment is going to be a norm soon. One of the most important parts is they help to improve the overall financial business operations. Incorporate these online payment methods into your finances or business processes and watch state-of-the-art results.