Banks and financial organizations are constantly finding ways to ensure seamless payment methods for consumers. The financial industry is developing, and these organizations need to introduce new technologies to address the rapid changes.
A couple of innovative technologies have been introduced, some of which will be improved while new payment innovations are still going to be launched.
Such new technologies and innovations can be found below;
1. Contactless payments: As the deadly COVID 19 pandemic continued to rage, consumers needed to make payments without physically entering their PINs on a card reader or swipe their cards. This led to a growth rate in the use of touchless payments, which allowed consumers to buy goods without making contacts.
This innovative payment method includes the use of QR codes scanning, dedicated smartphone apps, chip cards etc.
2. PayWithSpecta: PayWithSpecta is a platform that is creating a unique approach to the credit financing ecosystem.
PayWithSpecta offers a digital spending limit that can be used to make purchases from merchants (in-store and online).
A portion of this digital credit can be converted to cash, which allows a customer make purchases from merchants yet to sign up on the PayWithSpecta platform or for your personal needs. PayWithSpecta also rewards a customer for every merchant referred. You can learn more about PayWithSpecta here.
3. Mobile Payments: Asides using barcode-based apps, consumers can now pay using the “Shake to pay” With this feature, customers can open the app and shake their phone to display their favourite card to make purchases.
It was first introduced by Starbucks but has been adopted by various stores all over the world. Imagine going shopping without your physical cards in your bag or pocket. Absolutely amazing!
4. Facial recognition: In recent years, customers have made payments at outlets with a simple face scan. With facial recognition payment, you don’t even need your phone to make payments.
A touchscreen device is placed at the checkout counter of a store for this type of innovative payment. The device already has access to the facial-information of consumers which is already stored in a database. This way, the machine will find a customer who then makes his/her payments seamlessly.
This will be improved upon for more flexibility.
5. Voice Prompt Payments: If you have ever thought of making payments using voice command, you will love this. Siri, Alexa and Google Assistant can now assist consumers with making payments, using voice command.
Payment companies such as PayPal, Ameritrade, Apple Pay, Amazon Pay as well as some of the world-known Fintech giants have started taking advantage of the voice technology.
These AI assistants help users with cards, credit score changes, balance notifications, and even bills payments. Customers can simplify their daily financial operations with voice commands. According to Business Insider’s The Voice Payments Report, there were about 77.9 million voice users in 2020.
So how does it work? For example, customers just need to say “Alexa, pay $10 for groceries”. The AI identifies and confirms the store, then make payments automatically.
6. Biometrics Cards: Over the years, smartphone users have unlocked their phones with just their fingerprints. This same technology has now been introduced into payments.
A fingerprint sensor is placed on the card’s body, and payment is made at the Point-of-Sales (POS) Terminal by touching this sensor, instead of entering a PIN code.
The biometrics data used for payments on this card is stored on the card itself, but not with the bank issuing the card.
7. Mobile phones as POS Terminals: With a recently developed ‘tap-on-phone’, mobile devices have now been transformed into point-of-sale terminals. This technology allows small businesses to receive payments without having to invest in expensive terminals.
Data from transactions made on the app are stored in the cloud and can be accessed by business owners using this technology. This payment method will grow and be widely adopted.
8. Virtual Reality Payments: VR, as a technology is still in its infancy. This technology has been introduced into payments, especially in the gaming and entertainment industry.
Gamers can select a payment method and have a secure PIN pad displayed on the screen. The user selects their PIN, and with each number selection, the PIN pad changes dynamically.
Customers may soon have to make payments using VR payment technology.
These technologies and many more will be the reality of the payment industry as it keeps emerging and evolving, in a bid to serve the consumers better.