Digital payment acceptance continues to rise as merchants, and customers shift to ecommerce and digital buying habits.
Fremont, CA: During the COVID-19 pandemic, lockdowns, internet commerce, and fear of germs drove the shift toward all sorts of digital payments. Electronic wallet services, contactless payments, peer-to-peer (P2P) payment apps, and digital uses of credit, such as buy now, pay later, have all been completely adopted by Gen Z. Value-added services can assist digital payment providers, processors, payment systems, and payment gateways stand out and develop new, diverse revenue streams as competition heats up.
Trends in digital payments:
Electronic online payments
An electronic payment, often known as an e-commerce payment system, is a system that allows two parties to conduct financial transactions over the internet. Electronic payment systems are requiring stakeholders to rethink their strategy as the trend to online purchasing continues to accelerate. Bank transfers, echecks, and buy now pay later (BNPL) options are examples of online electronic payments.
A mobile wallet is a virtual wallet that stores a user's credit card information on their mobile device. It can manage credit cards, rewards cards, and memberships, among other things. Because of its convenience and capacity to decrease fraud, consumers are increasingly flocking to mobile wallets. By September 2020, 76 percent of consumers said they had expanded their use of this payment option, with 43 percent saying they had increased it substantially.
Due to health limitations and safety concerns, the adoption of contactless payment techniques, which are touch-free digital payment methods that employ radio-frequency identification or near field communication to make transactions, increased during the pandemic.
Mobile digital payment apps allow users to send money to another person or corporation using a mobile device such as a smartphone or tablet. In April and May 2020, top P2P providers reported double-digit growth in monthly app downloads, a trend that lasted throughout the year—in H2 2020, 30 percent of US adults joined up for new P2P platforms.