Technology and payment solutions go hand in hand. We also need to find ways to live our lives that are safe in terms of this and future pandemics. These are the payment solutions of the future.
Even before the pandemic hit, technology had made a huge impact on the way people paid their bills, how they made transactions and how often they went to the bank. Many haven’t visited their local bank in years. Thankfully, important innovations were made several years before Covid-19.
Many payment solutions out there therefore fit well with social distancing, quarantines and infection control. Such innovation will only become more important now. These are the payment solutions of the future.
Most banks have web pages or apps that can cater to almost any of your banking needs. The pandemic has made such innovations all the more important. Because you can now handle most bank related matters from your phone, you don’t need to leave your house for the bank. This makes social distancing much easier and such innovations will continue to shape the future of payments.
Some of us still use credit and debit cards and many of these are outfitted with a chip making it easy to just “tap” the card reader. You avoid touching the reader, often avoid touching the buttons and so avoid potential infection from previous customers. Such payment solutions will become even better and more important in the future.
Digital wallets: Big Tech and payment
The biggest technology companies of Silicon Valley will definitely be a part of shaping the future of payment. Apple Pay, Google Pay and Amazon Pay are all competing for market shares in the payment sector, and they’re all powered by companies who are known for innovation and extremely deep pockets. Big Tech companies have a way of shaping every industry they enter, and payment sure is a big one.
Digital wallets take the role of debit or credit cards and can either be directly linked to a bank account or you could transfer money to the wallet before a purchase. A digital wallet allows you to bypass filling in forms with card info, because the information needed to make the transaction is stored within the wallet. Moreover, you can use a digital wallet to pay in a store, making cards obsolete.
In fact, if you have your driver’s license in your digital wallet, and do not carry cash, you might not need a physical wallet at all anymore. They´re also very simple to use. For instance, with Apple Pay you only need your phone, and either a fingerprint ID or a face ID to pay. Both are just as easy as unlocking your phone.
Now the lines between the categories above start to blur. In a way, you could say that “digital wallets” are “contactless”. And “digital wallets” are also “digital payments”. So are “mobile payments”.
Here we´re referring to apps which makes it easier to transfer money. Venmo, owned by PayPal, is one such app. It makes it easier to split the bill with friends. Apps making such small transactions easier will also shape the future of payment solutions.
Are banks obsolete?
Banks are offering more digital services, while Electronic Money Institutions (EMIs) are becoming more mature.
– Soon the lines that define them eventually will blur together, says Guy El Khoury, CEO of Accomplish Financial, to Tony Craddock, Director General of the Emerging Payments Association (EPA), in their conversation about payment solutions and the payment sector.
Banks are perhaps not becoming obsolete but are at least learning from and adapting to online payment solutions.