Technology has significantly transformed many things from the economy the way you send money. Gone are the days when one needed when sending money to friends and families abroad was a nightmare. Today, life has been made simple through digital payments.
How Digital Payment Came
In the last ten years, digital payments have become more popular across the world. Banks and other financial institutions have massively adopted technology to make their operations easy. As 2021 begins, there is more that is expected in the digital payment sector.
Below are the digital trends for 2021:
According to Forbes magazine, approximately 31% of the world’s population is made up of Gen Z. These are people who were born between 1999 to 2012 when technological advancement was at the peak. This is why 2021 is viewed as a tech-savvy generation that’s exposed to all manner of technologies.
Generation Z comprises people who are highly dependent on technology. This means that the demand for digital payments is likely to increase in 2021.
2. Biometric authentication
Biometric authentication is one of the trends that’s likely to increase in 2021. Biometric authentication is a verification process that includes the structural and biological features of a person. The verification method comprises facial recognition, fingerprints, vein mapping, and iris recognition.
With the increase in technological advancements, the problem of fraud and identity theft has also emerged. That’s why biometric authentication is likely to become a preferred way of preventing fraud by financial institutions.
3. Increased demand for mobile point of sale systems
Mobile-point-of-sale is another revolutionary technology that is predicted to define the digital payment sector in 2021. Unlike in the past, mobile point of sales takes away the brick and motor burden when it comes to storing payments.
Besides, the POS payment system also makes business transactions more flexible and streamlined. There are clear indications that most businesses are going to adopt this technology because of the many benefits that come with it.
4. Money transfer apps
Mobile applications have also become a major driving factor of digital payments. Most banks and financial institutions have in-house mobile applications designed to promote remote banking and discourage face-to-face banking.
The good thing about a money transfer app is that it allows customers to transact anywhere at any time. The use of money transfer apps has seen a significant increase in the number of customers in the financial sector. This trend is likely to continue in 2021.
5. Contactless payments
This is another payment method that’s likely to grow and expand in 2021. As the name suggests, contactless payments make it easy for customers just to wave cards or smartphones over a reader to make payments. This way of payment is much faster compared to inserting a card into a machine.
Digital payments have a bright future. In the coming years, you will see most payments moving from physical to digital payments across the world. There are going to be many trends that will come and go before the full transition takes place.
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