Since the Stone Age, economics, money, and the way we make payments have experienced several modifications. In some ways, all of these are critical signs of our species’ growth. The primitive methods reflected our ancestors’ manner of life. Similarly, today’s payment methods display our technological advances, enabled by cutting-edge technology.
Payments digitization was a significant step in achieving the goal of an easy, convenient, fast, and secure payment mechanism. Possibly, we have accomplished all of them. Digital payment methods have advanced significantly over the last four to five years, and we can see even more advancements shortly.
It’s genuinely thrilling to see what 2022 has in store for us in these times. We’ll take a hard look at all the digital payment trends that will take off in 2022.
A Digital Wallet-Defined
A Digital wallet is a software program that stores people’s payment information and passwords for many different payment methods and websites in a safe place. It’s called a digital wallet. When people use a digital wallet, they can quickly and easily buy near-field communication technology.
In addition, they can create stronger passwords without worrying if they will remember them later.
Mobile payment systems allow customers to use their smartphones and digital wallets to make purchases. A digital wallet can also store loyalty card information and digital coupons.
White-label Digital Wallet from HolyWally
HolyWally’s (Wallet as a Service) solution intends to power millions of digital wallet apps, enabling enterprises to enter the mobile payment market at a reduced cost and more significant revenue potential.
Additionally, HolyWally has teamed with M-DAQ to offer its digital wallet app solution throughout Southeast Asia this year. M-backend DAQ’s capabilities will enable the white-label digital wallet.
Gen Z-the Tech-Savvy Generation.
Before we continue, let us define generation Z. The term ‘Generation Z’ or ‘Gen Z’ refers to individuals born between 1999 and 2012. Someone born between the ages of 7 and 20 falls into the group called Gen Z, which is also the group that has grown up with technology.
According to Forbes, Gen Z will account for approximately 31% (approximately) of the world population in 2021. This population transition will have a profound effect. This change predicts that by 2021, the majority of the world’s population will be technologically aware or exposed to technology.
This generation will rely on advanced, automated, faster, and more efficient technologies and services. Due to this, the demand for digital payment systems will increase significantly in the upcoming year.
Authentication using Biometrics
Biometric authentication is a technique that will rapidly grow in popularity by 2022. Biometric authentication is a type of verification that utilizes a person’s biological and anatomical traits. Fingerprint scanners, facial recognition, iris recognition, heartbeat analysis, and vein mapping are examples of these verification technologies.
Due to the rise of theft and fraud in 2022, biometric authentication has the potential to be a trusted and safe solution for all digital payments.
Biometric authentication is a one-of-a-kind and critical payment technique since it combines and provides accuracy, efficiency, and security in one package. Since biometric authentication relies on an individual’s unique characteristics, it is very secure. This component also contributes to the development of client loyalty and trust.
From Physical Cards to Electronic Codes
A few years ago, bank accounts were identified solely by the unique combination of digits on the card. Now, EMV technology (Europay, Mastercard, and Visa) has enabled the development of more automated and secure payment methods.
Each time an EMV transaction occurs, it uses a unique code. A great example of how people may utilize technology to create safe payments is that a temporary code generated significantly strengthens bank accounts’ security.
Demand for Mobile Points of Sale Is Growing
Mobile point-of-sale (MpOS) technology is a cutting-edge innovation since it enables any business owner to accept payments from anywhere. By implementing mPOS technology in their establishments, merchants have significantly improved the payment process by making it more flexible and streamlined. It is a new technology.
According to Global Market Insights, mPOS will grow at a 19 percent compound annual growth rate (CAGR) between 2020 and 2026.
Contactless payments are another growing concept that will likely gain popularity in the future years. It enables customers to make payments by simply waving their card or smartphone across the reader, which is a convenient and faster method of making any purchase.
The system is more secure than PIN-based authentication since it instantaneously transmits encrypted data to the point-of-sale device.
Contactless payment systems used by companies are Google, Samsung, Visa, and Apple. To pay, users only wave their card or download the appropriate software, enter their card information, and wave their phone over any reader.
With the proliferation of digital trends, it’s apparent that digital payments will play a role in our future. Different patterns will emerge in the future years. Some will vanish, others will remain for an extended period, while others will evolve as time passes. Whatever occurs, it will all have an impact on our future.