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The payments industry has undergone some rapid changes in recent years. For consumers, merchants and banking institutions, the landscape looks radically different today when compared to scarcely a decade ago.
The digitization of payments, aided by increased smartphone ownership, was the single biggest change to how payments are processed. Card payments are still common, but we are increasingly going cash free and using digital platforms for big and small transactions alike.
Payments tech continues to evolve swiftly, providing more choice and security, as well as better service to all users. If you’re looking for new banking solutions, Fintech services with atd-solutions is the answer.
Here we will take a look at some of the key developments to emerge in the industry.
Disruptors and Mergers
The recent proliferation of startups and non-traditional service providers in fintech had has a major disrupting effect on the payments industry. Unused to competition, large financial institutions had little incentive to streamline their services or improve customer experience. Recently, smaller companies have started providing solutions for businesses and consumers, easing processes that had long been points of friction.
Recognizing the threat from more nimble and innovative startups, the reigning companies responded by signing massive merger deals. Consolidating their services helps the incumbents to remain competitive in the face of the new generation of payment companies. It also affords users a more simplified system, as the consolidations allows companies to offer more services via a single platform. The situation is good for customers – businesses and individuals now have more options than ever when it comes to payments.
Biometric Security
One area of digital payments that requires absolute customer confidence is security. Any kind of breach could spell disaster for both the provider and the user. Companies are investing heavily in improvements to their security, including using customer biometric data for identity authentication.
Fingerprint sensors are now commonplace on mobile devices, and soon facial recognition or retina scans will be widely used as well. These functions can also be used to authenticate individual transactions. The system is not only completely safe, but it is fast and convenient for the customer as well.
Fast Payout Casinos Support New Payments Technology
Some companies are faster than others to adopt new payments fintech, and fast withdrawal casinos are usually some of the first. This is because it is to their advantage to provide as many options to their customers as possible, and also because newer tech tends to cut processing times and make payouts even faster. Now that casinos with fast payout are overwhelmingly accessed via mobile devices, payments can take advantage of the functionality available through mobile.
Increasing Security with Codes
Another security feature that has been strengthened is the use of codes for digital transactions. Traditionally, customers have used a combination of fixed codes to complete payments, including card numbers, PINs and CVV codes. More recently, there has been a move towards a much more secure mechanism – the use of randomly generated temporary codes for each individual transaction.
Both the established and novel financial service providers now employ this technology. Apple Pay and Google Pay have dynamic code as part of their payment security, and big providers like Visa and Mastercard are also making use of the technique.
Contactless and Mobile Point of Sale
Contactless payment was one of the biggest leaps forward in the way that we pay. Simply tapping a card or mobile made in-person purchases faster and more convenient for customers and vendors. Many newer venues, such as the recently constructed state-of-the-art Tottenham Hotspur stadium, will only accept contactless payments. It is likely to be a big step towards an almost entirely cash-free society.
Mobile payments are also on the rise, with uptake set to continue to increase rapidly over the next few years. Users can link one or more bank accounts and the tech is fast, reliable and secure. It is functionally similar to contactless card payments when used at point of sale, as well as being a more convenient way to make online payments. For vendors, both contactless and mobile payments come with advantages. The tech not only helps to process and serve more customers in a shorter time, but it allows the point of sale to be wherever the customer is. This can include trade shows, concerts, and food delivery services.
Next Generations Embrace Payments Technology
While older consumers may be more cautious about digital payments, the same cannot be said for the younger generations. For this demographic, the top priorities besides security are ease of use and speed of transactions. As the newer tech continues to give us instant payments with no complicated data entry, younger customers are more likely to use them. The widespread usage of smartphones also fuels the trend.
There is no doubt that digital payments are the future. Whether or not it means the end of cash remains to be seen, but there are sure to be more upheavals in the coming years. It will be interesting to see how existing financial systems continue to adapt their practices in order to keep their place in the new landscape.
