Thanks to digitization, the entire world has undergone a complete shift. Online payments have been one of the critical areas that have taken the spotlight. As a matter of fact, when First Virtual Holdings launched the first-ever online payment system in 1994 alongside CyberCash and other key players, who could have imagined it was the beginning of a financial transaction revolution?
Nowadays, practically everyone across the globe can enjoy fast, secure, and convenient online payment solutions. But what tech trends are driving this drastic shift from traditional payment options to online solutions? Here are four key tech trends that we’ve identified.
4 Tech Trends That Promote Online Payments
As of 2022, online payments accounted for 49% of all transactions worldwide. That value implies that a vast majority of people worldwide have access to these solutions. Let’s look at some key trends that have accelerated the online payments wave.
Increased Demand for Mobile Payment Solutions
The speed, ease of use, and convenience of mobile payment solutions has pushed the world into a cashless era. Now, you can order food online, shop for groceries, make casino deposits, and even pay your utility bills from the comfort of your mobile device.
For instance, ever thought of making purchases using your phone bill? Well, it’s possible in 2024. In fact, pay by phone bill casinos are one of the most popular gaming options among consumers today. How they work is that you’ll play your favourite games and your deposits will be charged to your phone bill.
Mobile wallets, like Apple Pay, Google Pay, and Samsung Pay, have also played a part in opening the world to new heights of convenience. So much that experts believe that we are on the dawn of yet another online payments trend: wearable payment solutions. Here, customers can expect to securely complete online transactions using smartwatches that are linked to their digital/mobile wallets.
Rise of Cryptocurrency Payments
With over 420 million cryptocurrency users worldwide, it’s clear that crypto payments are becoming more mainstream with each passing day. One of the main allures of these digital tokens is that they allow their users to make highly secure and speedy online transactions.
What’s more, you don’t have to provide endless details to conduct crypto transactions. They also charge little to no transaction costs, no matter how many transactions you make in a day—a far cry from what banks offer. For these reasons and plenty more, the cryptocurrency boom will continue to grow for years to come.
The Appeal for More Secure Transactions
As customers’ need for speed and convenience increase, so do their security needs. And with rising instances of financial fraud and identity theft, customers are gravitating more towards payment solutions that incorporate cutting-edge security measures.
Online payment methods excel in this regard, often integrating biometric authentication, blockchain technology, or other advanced systems to safeguard user data and transactions.
Not only do these innovations alleviate the burden of remembering passwords or carrying physical cards for transactions, but artificial intelligence and machine learning further help in the fight against cyber crimes and hackers.
Continued Popularity Gain of Real-Time Cross-Border Payments
You’ve probably heard of or participated in cross-border payment transactions that make it possible to send money from one side of the world to the other. But, oftentimes with banking institutions, it may take days or even weeks to facilitate such transactions. Not to mention the high facilitation fees.
Luckily, online payment solutions, like Paypal, Interac, Skrill, and AmazonPay, have shattered this limitation. Individuals and businesses can now use these solutions to make and accept payments from practically anywhere in the world instantly, as with a physical transaction.
Undoubtedly, fast, cheaper, and streamlined cross-border payment solutions will continue to attract consumers who love shopping across their borders as well as those who enjoy playing at offshore gaming platforms for years to come. That’s why many financial experts predict this market will hit the $345.42 billion mark by 2033.
What Does the Future of Online Payments Look Like?
In this age of speed and convenience, we can only expect to see more mind-blowing innovations in the digital payments space. In fact, many experts believe that Internet of Things (IoT) devices, like smart speakers and smart fridges, will effortlessly make payments whenever their sensors notice a lack.
Imagine a world where your refrigerator can order and pay for groceries online whenever your supplies run low. Even without you voicing out a command. Well, this is just one of the major transformations that will shape the future of the digital payments landscape.