The world is experiencing unprecedented levels of technological innovation and digitalization. They are able to transform industries and change the economic landscape. The world of payments has also seen the transformation from traditional models to more digital ones. Add to that the dire situation we are in in relation to the socioeconomic impact of the coronavirus. Many companies have to rely more heavily on a digital environment. Jorge Zuñiga Blanco, a business and eCommerce expert, explains how electronic payment innovation can help the industry develop.
Zuñiga says, “In this situation, it is really important for banks and other businesses to be up to the task to support their customers on that journey to digital transformation by offering digital payment services that address their needs in regard to payment methods.”
A survey found that 61% of respondents use financial apps to pay their bills. 90% rate the experience as good. 39% of those who don’t use them anticipate incorporating the habit in the near future. Mobile payments will continue to grow, with new functionalities that make managing your money easier and more efficient. The use of mobile banking apps will increase, as well as the use of non-traditional financial institutions’ wallets.
The QR code is also growing in popularity. As more businesses incorporate the QR code, it is expected that its popularity will increase exponentially. Multiple research has shown that QR codes have grown in popularity over the past few months. Only in supermarkets, payments increased by more than 500% between July 2020 and February 2020.
Another trend is the payment via social media platforms. Different companies have created their own payment buttons for WhatsApp, Instagram, Facebook, and Twitter in the past few months. The consumer must first contact the merchant to place an order. Once they have completed the order, they will be sent a link that allows them to complete their personal and credit card details. Finally, they can confirm the transaction by returning it. These platforms have their own payment system and are working on it, even though this isn’t a specific tool.
Even though digital transformation was an industry priority, banks are now competing with FinTech to be the leader in this sector. Zuñiga adds, “Projects have not slowed down, but have seen a significant acceleration in the past few years. All the companies who wanted to lead in some way must now be able to quickly transform to adapt to today’s market in a digital, efficient and agile way.”
Other key points that need special attention are also worth mentioning, like the adoption of tokens. These tools redefine security in payments in both the business-to-customer and business-to-business relationship. They offer agile and simple-to-use technologies and allow the creation of authenticated profiles. This allows banks to use the database to securely make and receive electronic payments without having to reveal any sensitive banking information.
The other key is to be open to new technologies and rise up to them. While there is no doubt about the risks involved, it is important to rise to the challenge of dealing with emerging technologies. This includes providing effective solutions to potential fraud and addressing certain cybersecurity threats. Simon concludes that the greatest challenge for the digitally transformed payment industry is to ensure confidentiality and protect it.