It is hard to deny that the digital revolution has profoundly changed all corners of the business world over the last couple of decades. Payments have to be one of the aspects that have undergone the biggest transformation. Instead of going through traditional clunky channels, these days the money can travel the world in a matter of seconds with just a couple of clicks. But the real beauty is that this exciting story does not end here – it just begins.
Digital tech trends are still developing at a lightning-fast pace and will continue to do so in the future years. Let’s see how payments and cards fit into this story.
The growing influence of Generation Z
That’s right, the Millennials are not the hot topic anymore – they are slowly losing the spotlight to the Generation Z, kids born between 1995 and 2012. Aside from habits that will lead to greater financial freedom, this generation is expected to demand even greater immediacy and rely even more heavily on banking applications than their slightly indy predecessors. As a result, we will see the even greater adoption of banking applications, mobile wallets, and contactless cards slowly taking over America and Canada, and soon expected to hit the rest of the world.
Safety achieved through biometrics
Security based on biometrics has been with us for a couple of decades now. But, the technology was usually reserved for high-level corporate clients. These days, biometric verification has become affordable enough to conquer even the more casual playing fields like the cryptocurrency market. And why wouldn’t it? With the financial concerns off the table, the perks are simply too good to ignore. The buyers are getting yet another efficient and fast way to verify the shopper’s identity, the customers an added level of security. Expect to see it more and more in the following years.
Further segmentation of credit cards
This development can be largely attributed to activity-specific loyalty programs aimed to make everyday activities easier and more profitable. For instance, if you travel abroad often, you can research the best credit card to use overseas and find the option that rewards you for international payments and lowers the crippling transaction fees. Other cards may offer more affordable car leasing, reward you with points for buying at specific brands, etc. Since virtual transactions are taking strong roots, newer generations will have no problem handling all these cards and accounts to reap the lucrative benefits.
Cryptocurrencies becoming a valid payment option
Although they didn’t quite rise to the status of bank-killers they were envisioned to be, digital coins have become an important part of the current financial landscape. What’s even more significant, businesses are becoming very keen on adopting them as viable payment options. On the one hand, companies are attracting new customers and inspiring greater trust amongst younger customers. On the other, buyers are getting a streamlined option to spend their Bitcoin stocks. Since both parties are content, we can only expect to see cryptocurrencies spreading even further.
Blockchain ramping up security
The sudden rise of cryptocurrencies is pretty novel in itself. However, this expansion brings a lot of side benefits. For instance, the blockchain technology all contemporary digital currencies are based on is exceptionally fast and secure. Also, the blockchain transactions are immutable, do not use the concept of debt, and can’t be reversed. This effectively eliminates the possibility of various types of fraud and the necessity for cumbersome escrow accounts. The sheer expansion of cryptocurrencies, therefore, makes associated transactions leaner, faster, and far more secure.
Cutting-edge data-driven analytics
Last but not least, it would be foolish to assume that the banks will simply allow all that money to flow beyond their reach. But, how can they compete with the lighting-fast crypto competition? The answer lies in hard work and data-driven analytics. In order to stay relevant in the modern digital world, legacy financial institutions will have to invest a lot of time and resources to learn more about the clients and their financial behavior. As a result, we should get a much more streamlined, sophisticated, and customized transaction experience.
These few trends are far from a complete story, but they do offer a valuable insight into the digital storm brewing on the financial horizon. Where will this evolution lead in the following decades is hard to predict, but judging by the current development, we have a lot of exciting years ahead of us.