Digital payment methods are cashless, contactless, and paperless methods of payments. With technology, it is now possible to embrace digital payment methods, which are more convenient means of exchanges via services, such as AI or machine learning and mobile applications.
Following a leading study, it was found that by 2020, the number of digital payment users will increase by 5.4 percent.
So, which is the most popular digital payment methods that your company needs to adopt? Let us take a look.
Biometric authentication devices
Though customers are making a switch to digital payments that in no way means that they are ready to compromise on the security, says Mia, who works with EduworldUSA, where you can pay someone to do my homework.
In biometric authentication, methods like facial recognition, heartbeat analysis, fingerprint scanners, vein mapping, and iris recognition are used to prevent fraud and theft. Several phones with digital wallets, such as Google Pay and Apple Pay, employ facial recognition and fingerprint.
However, other methods work too. Visa, also, is piloting a payment card with biometric authentication.
mPOS or Mobile point of sales
This convenient payment method should be the number one priority for businesses. It is believed that by 2021, we may have 27.7 million mPOS devices, as opposed to 3.2 million in 2014. The mPOS devices are wireless devices, such as smartphones and tablets.
In these apps, the card reader and an application are used to process payments just as a cash register. With the mPOS payment method, the businesses will have the independence to eliminate the central checkout area and accept payments off-site or anywhere in the store, says Diana, a chemistry homework help provider with TAE.
As part of this method, the customers have to swipe their debit or credit card with a card reader attached to the device, and that is it.
We all know that gone are the days when voice commands seemed like a futuristic option. Via the smart speakers, such as Amazon Echo, Apple HomePod, and Google Home, consumers can instruct the voice command into making a payment or a purchase.
Today, approximately thirty-five percent of users shop for their clothing, groceries, or home care items via smart speakers. Even though some customers believe that smart speakers are not the most secure form of making purchases, it is still depicting a dramatic increase in popularity, says Sofia, who works with FineGradesas a literature expert.
Today, many mobile payment applications enable the user to purchase products, pay bills, transfer money, or make any other type of financial transaction with just a tap of the button. If you have your account created and your payment details are saved, shopping for goods and services is easy.
Some of the prime examples of this technology are PayPal, Google Pay, Venmo, Samsung Pay, Amazon Pay, and Apple Pay. These electronic payment platforms have their digital wallet or the wallet app, which lets you make payment. There are substantial costs involved with contactless payments.
Firstly, you will have to purchase the card terminals, which are enabled with near-field communication technology. As such, there is no associated fee to accept payments through Apple Pay or Google Pay.
However, like the other credit card transactions, fees, and rates are applicable whenever a customer uses a credit card for paying for the purchase.
Today, customers are switching to contactless payments because they find it quicker and safer than swiping a card or counting cash, says Kylie, who offers the best product management courses.
Moreover, since most consumers have their phones with them 24/7, this payment method is far easier.
This payment option is not curtailed only to the mobile wallets. Today, the new credit cards also have RFID technology, which is needed for contactless payments.
In this payment method, the customer has to hold a card close to the card reader, but there is no need to swipe the card; you can either tap it against the card terminal or insert it in the card reader.
Social media payments
Today, social media networks are just everywhere. Now, they have expanded to the extent that they have payment solutions, such as P2P payments. It means transferring money from customers to the retailer or via one user to another directly across the network. A lot of millennials now look up to social media every time they have to make a payment.
On platforms like Pinterest, Instagram, and Facebook, there is now a provision for the brands to set up a business account to sell their products to the customers via digital payment transactions. These payments take place directly on the site at a very nominal fee. Following a study conducted in 2018, approximately 55 percent of online buyers have purchased one or the other social media platforms.
So, these are the top five most preferred digital payment methods. It is believed that with the persistent rise in the digital payment methods, the traditional techniques involving the use of credit cards and cash will see a decline.