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Wednesday 21 August 2019
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2019 Slated to be Record Year for Payments Industry!

2019 Slated to be Record Year for Payments Industry!

2019 is slated to be a record year for Payments Innovations!  All the signs continue pointing towards a more digital future in payments. Many of the recent surveys that have been conducted for the payments industry find that more than a third of Americans now make zero weekly purchases with cash, with the percentage of people who use cash for everything dropping from a quarter of the population to less than 20% since the 2015.

What excites the payments industry is the technology enhancements that will really help move the bar forward for commerce in the coming year! The Top 5 trends are nothing that haven’t been discussed, but they are being implemented at record pace now and with great results!

 

The future of payment experiences will be designed by—and for—Millennials

Frictionless and easy is what most consumers want.  Millennials have helped usher in many more of the technology enhanced experiences.   As this group of individuals became more involved in designing the tech, they made it easier for all of us.   Infinite choices based on what they need now has really improved the technology innovations delivers immediate value. Mobile has changed our daily lives and as a result of the innovations from mobile/digital there will continue to be advances in this tech to fuel all that is needed to make our life easier! This transparency and personalization, are creating a huge opportunity for merchants or banks to cater to more specific wants and needs.

 

Chatbots will be Take more of a Financial Role! (Do It For Me)

The app universe has allowed consumers to do-it-yourself (DIY), but now with the addition of AI, chatbots and voice-based digital assistants the technology is now expected to do-it-for-me (DIFM). Facebook already offers 300,000 chatbots on its Messenger platform that are ready to be at your service. Consumers are beginning to embrace this DIFM technology.  Consumers are more confident in the chatbot tech even with their financial transactions and ecommerce they really like the speed and personalization it offers.  The DIFM trend will continue!

 

The future of payment experiences will be designed by—and for—Millennials

Frictionless and easy is what most consumers want.  Millennials have helped usher in many more of the technology enhanced experiences.   As this group of individuals became more involved in designing the tech, they made it easier for all of us.   Infinite choices based on what they need now has really improved the technology innovations delivers immediate value. Mobile has changed our daily lives and as a result of the innovations from mobile/digital there will continue to be advances in this tech to fuel all that is needed to make our life easier! This transparency and personalization, are creating a huge opportunity for merchants or banks to cater to more specific wants and needs.

 

E commerce is being fueled by Artificial intelligence (AI)

Digital tech and mobile tech continue to take center stage in every industry and especially in the financial tech and payments industry. Explosive growth of digital and mobile technologies platforms over the last decade has built a foundation on which AI is now poised to flourish. As consumers continue to be reliant upon technology, AI is doing more than consumers realize, and as enterprises see the benefits they certainly plan to keep using more AI in the solutions they offer.

Payments companies will continue to utilize AI for security and fraud detection, cyber defense, but also to power advances in consumer-facing technologies like voice assistants and loyalty programs. AI-powered commerce experiences mean that there will be a focus on designing with new technologies and features in the plan(e.g., voice-activated shopping), embracing new interaction models, and embedding convenience, security and privacy from the very beginning!

 

Back to the “Consumer is King” thought process! New ways to pay are being delivered through big tech platforms

Consumers spend more time on a concentrated number of websites so banks and merchants will need to find new ways to create branded experiences on the platforms where the most people spend the most time. It will be the responsibility of the big tech platforms to leverage these high engagement levels and seek to create new commerce experiences of their own. These “experiences” will set challenges to the rest of the competition to try to break through the noise to get the attention of the consumer.

 

Security will be more personal through authentication with biometrics

Having a seamless and frictionless commerce experiences will need the help of biometric technologies. As more security conscious experts suggest the password could be a thing of the past in as soon as five years. There will never be one type of security protocol to meet all the needs of commerce and fintech. Biometrics are quickly becoming a more commonplace way for consumers to authenticate themselves for access and payments. The benefits from biometrics is that is can be faster, easier and more secure compared to the traditional use of passwords or PINs, which are difficult to remember and easy to steal.

AI and machine learning technology developments are advancing to really help  fight fraud on the back-end, consumers will reap the benefits of greater simplicity and seamlessness that biometrics offer on the front-end which will ultimately, help fuel the adoption of new ways to pay.

These trends and many more in the pipeline can benefit by delivering better, faster and more relevant retail and fintech experiences. The “retail apocalypse” may not come into play if the ecommerce industry embraces some of these technologies. Retailers using technology to enhance and deepen their customer experiences can win. With innovation growing at a record pace and an ever-broadening ecosystem at play, we are excited to see what 2019 brings.




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