The Covid 19 pandemic has resulted in a rapid increase in both the volume and value of digital payment options. In fact, according to Statistica, the total transaction value in the digital payments segments is projected to reach $7,860,739m in 2022 and $10,715,390m by 2025.
Mobile wallets, cryptocurrency and voice-activated payments – it’s all changing so quickly that it’s hard to keep track. But at Capitalixe, we’ve got your back.
Below are some of the biggest trends in digital payments today and what the future holds for them. So grab a pen and paper (and a lovely hot cuppa) because here are the trends you’ll be discussing at your next dinner party…
Mobile Wallets
Now one of the most used digital payment methods by consumers, mobile payments use will continue to rise with 26.93% of CAGR projected between 2020-2025.
These services offer customers convenient, instant payments with no need for cash or PIN numbers. And they’re changing more than just the shopping experience, they’re even revolutionising how we make utility bill payments and send money abroad.
Today, we can use our mobiles to pay for groceries and petrol or even delve into the world of digital currencies by transferring Bitcoin and other cryptocurrencies between wallets. And we can do it all with just a tap of our phones.
However, there’s still room for improvement in this sector as many retailers are still reliant on cards as an alternative to cash. This is mainly due to the fact that not everyone has a mobile wallet and some customers still don’t trust them.
BNPL Schemes
Buy Now Pay Later schemes are quickly becoming the preferred payment method, especially with millennials and Gen Zs. StudentBeans found that 42% of UK shoppers aged 16 to 24 used a BNPL service for big-budget fashion items and expensive tech purchases.
These schemes allow users to spread the cost of expensive purchases over time. Let’s say you want to buy a product for £200. You can split this purchase into three or four monthly instalments with zero interest.
Klarna is one of the leaders in this field, with an impressive 90 million users utilizing their services. They are quickly replacing traditional credit cards, especially for internet shoppers. Last year, the company announced it had raised $639 million in funding rounds, bringing the company valuation to $45.6 billion.
Voice-Assisted Payments
If you own an Alexa, Google Home, or Siri device, you probably use it to get the weather report or book a cab. But did you know that these devices can also make your shopping easier?
Statista found that 35% of users use smart speakers for buying products like home care, groceries, and clothing.
So how does voice-assisted shopping work? You simply tell your digital assistant to order you a new pair of shoes, and they do it for you – there’s no need to type in any payment details as they are already logged into your account!
Cryptocurrency Payments
The future of digital payments is undeniably crypto. And with mainstream providers like PayPal, Stripe, and Square now accepting Bitcoin as a form of payment, it’s easier than ever to use these new currencies.
40% of large corporations in the Americas, Middle East, and Africa are considering using digital currencies for purchases over the next year. Plus cryptocurrency is helping a number of our clients who have high-risk merchant accounts.
This includes the online gambling industry which has been completely revolutionised by cryptocurrency. Our Co-founder Lissele Pratt discussed how in Fintech Times.
Named one of the biggest trends in the payments industry by PYMNTS, crypto is becoming an increasingly attractive payment option. If you’ve still got doubts about them, here’s why more and more companies are looking into crypto payments.
Artificial Intelligence & Machine Learning
AI is already changing the way we live, and now, it’s also revolutionising digital payments.
Machine learning algorithms are helping to identify fraud and prevent them, as well as providing real-time security measures against hacking.
AI can also help companies personalise the customer experience. Algorithms can identify a user’s shopping habits, preferred payment types, and any special requests – all in real-time!
As people become increasingly reliant on AI to provide a better user experience, these technologies will continue to gain in popularity.
AI Banking
As well as improving the user experience, AI is also starting to take on some of the back-end tasks that are traditionally handled by humans.
For example, AI can now provide automated financial advice based on individuals’ spending habits. Meanwhile, chatbots are also helping customers manage their accounts and complete simple transactions – without ever having to speak with a human being!
In the future, we may even see AI-enabled financial advisors replacing some of the roles of human advisers. For example, rather than recommending a specific assortment of products to invest in, an AI system would be able to provide financial advice based on individual circumstances.
Final Thoughts
So there you have it. Our top digital payments trends for 2022.
As technology continues to advance, we can expect to see more innovative payment technologies – particularly in the fields of artificial intelligence and cryptocurrencies. These could all become integral parts of our daily financial routines over the next year, from voice-assisted purchases to chatbots.
Capitalixe
At Capitalixe, we leverage the latest in financial technology solutions to help high-risk companies like those in the gaming and cryptocurrency sectors. We can help attain high-risk merchant accounts, multi currency IBANs or even bank accounts for financial institutions and the latest payment solutions.
Contact us today to find out how we can help your business grow!
