2019 is nearly over, which means it’s time to get ready for all the opportunities and challenges that businesses will face in 2020. Payments are an integral aspect of business, so it’s important to stay on top of the trends that emerge each year. Here are some of the forecasted payment trends for 2020 and how they may impact your business in the new year.
Multi-experience refers to how consumers interact and connect with various brands. This may be through voice, touch, or gesture with smartphones, TVs, PCs, or wearable devices. With the emergence of multi-experience, companies will have to ensure a consistent experience across multiple touchpoints and devices that include how payments are addressed during the purchasing process.
Facial Recognition Payments
Countries, like China, have already made inroads with the facial recognition payment trend via Apple’s Face ID with Apple Pay. This payment trend can enhance the digital customer experience through streamlined checkout and payment, while also ramping up security levels to new heights.
Heightened Competition and Collaboration
Closed and open payment platform providers see greater competition as they vie for businesses to use their payment solutions, including the ongoing proliferation of fintech startups. At the same time, some payment processors recognize the value of teaming up and putting their talent and knowledge together. Looking into the history of payment companies, it was collaboration that led to the creation of Mastercard and Visa. Similarly, the partnership amongst many U.S. banks led to the development of Zelle, a P2P platform that now competes with Venmo.
The result of this collaboration over the competition may lead to new types of payment products that focus specifically on the aforementioned multi-experience opportunities. More banks and financial institutions recognize that there is value in partnering to further develop payment solutions that incorporate these new technologies. These technologies include innovative payment hubs, artificial intelligence and machine learning, robotics, open APIs, distributed ledgers, and biometrics. In working together, these new payment solutions may be able to launch more quickly and help more companies drop their payment legacy systems.
Anywhere, Anytime Payments
Now that countries around the world are establishing the infrastructure and processes to allow real-time payments, consumers and businesses will push for more options that allow these transactions from any device at any time.
Although real-time payment options are growing, so is fraud related to these transactions. This forces more retailers and companies to think about how they can leverage this preferred payment process.
Contactless Payments Finally Dominate
Currently, it’s Australia that leads the world in contactless payment adoption, with the U.S. only starting to catch up because of consumer’s love or company reliance on checks. However, some research now indicates that 2020 is poised to be the year where global EMV chip card technology adoption occurs. This accelerated adoption is also fueled by retailer implementation of contactless POS technology.
Blockchain and Crypto Are On the Move
Wells Fargo plans to launch StableCoin in 2020, opting to use blockchain over SWIFT for internal money transfers across borders. Although Bitcoin has not fared well in terms of value and Facebook’s Libra has seen some setbacks, the adoption of this technology from one of the biggest banks in the world sets a new precedent. It also signals the growing likelihood that more banks and financial institutions may use blockchain for faster transactions and to help secure many of those real-time payment platforms.
Mobile Wallet Usage to Grow
2020 begins the significant rise of mobile point-of-sale (mPOS) technologies. And, that’s because consumers are starting to get behind using mobile wallets. Accenture found that 64 percent of consumers surveyed noted that they plan on using mobile wallets more in 2020. Investopedia reported that Samsung Pay, eWallet, and Venmo dominated the mobile wallet market in 2019.
As a small business owner or online retailer, it’s important to realize that these payment trends will impact your company and market share in one way or another. Payment processing companies want to help their customers like you. Look to them for guidance on how to address these payment trends, including how to continually work toward a complete digital payment process that responds to customers’ preference for mobile and online experiences.