(MondoVisione) - The fintech landscape is perpetually in motion and this year will be no different. Consumer behaviour is slowly getting back to normal especially since many restrictions are being lifted. Also 2021 habits, from both a merchant and consumer point of view, are seeping into 2022. So, what are these trends and what will they mean?
One of the most significant payment shifts of the 21st century so far, the rise of cashless transactions, has accelerated in the past few years' thanks in part to the pandemic – in 2020 alone, cash payments plunged by 35%. In many cases this has driven convenience for the customer and allayed fears, without cash in a wallet, of violent crime.
Even though many still and will carry cash, we expect the use of contactless transactions to further increase. And merchants and leaders in the payments industry will respond by ensuring customers have the tools at their disposal to experience a frictionless and smooth user journey.
Digital wallets – electronic payment systems typically through a smartphone that can hold an individual’s bank details – are being increasingly deployed by businesses, with some of the most popular wallets available including Apple Pay, Google Pay and Samsung Pay.
In-store purchases can now be completed with a touch of your smartphone, or even smartwatch, without the need to use a debit or credit card. But it’s not just purchases they can be used for. Indeed, users can transfer money or pay bills by simply choosing a recipient, selecting the right amount and authorising the payment.
The evidence is clear, these tools are popular with consumers too as, according to a report released last year, digital wallets account for 32% of online payments, ahead of debit cards (29%) and credit cards (21%).
Open Banking is another trend to keep an eye on. It is a raft of reforms centred around the customer’s financial information and means UK-regulated banks allow them to share data, such as where they spend their money, companies they use etc. with providers that offer money saving apps, if the customer gives permission.
To the benefit of the consumer, an app, with your permission, would analyse your spending habits and from that put forward a new product that may be suitable to managing their overall finances. Nonetheless, the power is with the customer, who doesn’t have to share any information if they don’t want to…
It is also important to consider artificial intelligence as a significant part of our present and future behaviour. These are next-generation technologies that are getting smarter every year and, despite their current limitations which means the struggle to do more than one thing well, the room for improvement frequently makes them both an important element for discussion for business leaders and merchants and an attractive investment opportunity for the big tech companies, such as Google and Meta (Facebook).
Finally, companies are continually harbouring the use of biometrics. Smartphones are often unlocked using biometrics, which can include facial and voice recognition or fingerprints and are a regularly used feature. Indeed, biometrics can boost security for the individual and make it easier to mitigate against fraudulent activities.
In conclusion, coronavirus has forced merchants to invest in the latest fintech infrastructure as business was forced online at an accelerated rate. This has coincided with the introduction of regulatory changes too which, alongside the pandemic, has made it essential that business leaders implement the most advanced technologies at their disposal to bolster revenue and convenience for the customer.
Not only does this help fight fraud and boost security for the user but it also ensures that we can all get on with our day-to-day lives in the most efficient way possible with minimal touchpoints.
By Lee Jones
01/26/2022
Lee is the Managing Director Northern Europe for Worldline and, alongside his team, has an unparalleled track record of helping organisations deliver a reliable, secure and fuss-free checkout experience.
Having held a variety of leadership roles with market leading technology companies over a 20-year period, Lee is passionate about driving solutions that deliver real value to his customers.
Leading Worldline into new markets, where the introduction of cashless payments is just starting to emerge, while supporting existing customers in their ambition to meet and exceed shopper expectations, is something which highly interests Lee. Lee is proud of the trust customers have placed in Worldline and his team. Being able to help organisations reduce the cost, complexity and burden of PCI while assuring their revenues and enabling them to increase their customer satisfaction scores is at the heart of Worldline’s strategy.
About Worldline
Worldline [Euronext: WLN] is the European leader in the payments and transactional services industry and #4 player worldwide. With its global reach and its commitment to innovation, Worldline is the technology partner of choice for merchants, banks and third-party acquirers as well as public transport operators, government agencies and industrial companies in all sectors.
Powered by over 20,000 employees in more than 50 countries, Worldline provides its clients with sustainable, trusted and secure solutions across the payment value chain, fostering their business growth wherever they are. Services offered by Worldline in the areas of Merchant Services; Terminals, Solutions & Services; Financial Services and Mobility & e-Transactional Services include domestic and cross-border commercial acquiring, both in-store and online, highly-secure payment transaction processing, a broad portfolio of payment terminals as well as e-ticketing and digital services in the industrial environment. In 2019 Worldline generated a proforma revenue of 5.3 billion euros.
