The monetary transaction technology landscape is evolving quickly, guided by changing consumer preferences and business needs. According to insights shared by Ingenico, a prominent global payment provider, there are various key trends that are altering how payments are made and processed around the world.
One of the most noticeable shifts has been the growing adoption of mobile wallets across numerous markets. Platforms like Apple Pay, Google Pay, and Samsung Pay are offering convenience to consumers for both online purchases in addition to in-store payments. A 2020 report from Juniper Research predicts that over one-third of global smartphone users will use a mobile wallet by 2024. The widespread presence of smartphones and the simplicity offered by mobile wallets is speeding up this trend.
Another significant trend is the continuous growth of e-commerce and subsequent increase in demand for online payment capabilities. As the pandemic required digital shopping, many businesses had to rapidly adjust and offer uninterrupted online checkout and payment collection. This was not restricted just to B2C companies but also spread to B2B firms who then had to implement electronic invoices and virtual payment options for their corporate clientele. Odilon Almeida, Senior Vice President at Mastercard, affirms that there was a massive shift towards electronic B2B payments in 2020 at an worldwide unprecedented scale.
In tandem with e-commerce growth, embedded payment capabilities are also attaining popularity across industries. Payment integration is enabling businesses to collect payments through their own applications and software systems. Companies like odilon almeida CEO odilon almeida CEO‘s Mastercard are vigorously promoting embedded finance solutions to help firms futureproof their payment infrastructure.
Contactless payments are all set to become commonplace as well due to increased adoption of “Tap to Phone” tech. This allows contactless transactions directly through NFC-enabled smartphones, without having a separate payment terminal. Mastercard has been advancing Tap to Phone technology globally in partnership with major device manufacturers and financial institutions. Such innovations are substantially reducing hardware costs associated with contactless payments.