Changes in payments is in overdrive and will only ever get better and faster, with traditional payment methods being thrown out. It is apparent now more than ever that new technology trends will shape the future of the payments system. All payment technology trends aim to be as secure and as ubiquitous as possible. However, with so many emerging this can be a difficult goal. Here we will take a look at some of the payment technology trends to watch out for in 2019.
Rise of the machines
Nearly every technology company is working with machine-to-machine or voice-activated communication. With this, payments are set to take off and be a part of many tasks that consumers are not able to do. The technology could bring about a future where consumers are able to ask ‘Alexa’ or ‘Siri’ to pay for their bills or handle their banking accounts.
Contactless in the US
Contactless payments were introduced last year in the UK and are still very popular to this day. However, the US has laboured behind with this adoption. But according to 300 US and Canadian merchants, there is a strong desire to revolutionise their in-store checkout experience. Large companies such as JPMorgan and Visa have already started to issue contactless chip cards for all of their new and replaced cards in 2019. It is no surprise that the US have now committed to this adoption as contactless payments bring about a new era for customer experience in shops.
‘Buy now, pay later’
We are already seeing the growth of alternative credit facilities that are set to take over credit cards. These include payments such as paying by instalments (with 0% APR), differed payments by invoice and ‘buy now, pay later’ schemes. Companies such as Klarna allow for this type of payment, they also offer customers the choice to spread out their costs into equal monthly payments.
This allows customers to be able to pay for something when they want it, instead of saving up before the purchase. With online merchants continuing to facilitate this trend, it is expected that in store merchants will soon catch on and adopt this form of payment.
AI to bring mass personalisation
Artificial Intelligence (AI), is mentioned and recognised in every technology business and is set to play a major role in payments in 2019. This is because it can bring about the option for retailers to offer personal user experiences including customised offers. Currently, only multinational retailers have the ability to offer this payment experience, whereas AI can bring about the adoption of a mass scale.
Growth of P2P systems
The development and growth of P2P options such as PayPal is set to revolutionise the market in 2019. They give customers the trust that their money can be moved around quickly and securely from one phone’s linked account to another. Retailers are already starting to incorporate this payment technology into there businesses. With applications such as Target Pay and Kohl’s Pay appearing on customer’s mobile devices regularly.
We have seen how five technology trends will shape the future of the payments system. However, there are always new technologies emerging into the world and with this comes new improvements. Without these improvements the sector could not develop and keep up to date with the modern world.