COVID-19 encouraged the adoption of technology models that generate alternatives to the use of physical money and that this New Year will be consolidated as a real alternative in people’s daily lives.
6 min read
By: BPC Banking Technologies.
- Retailers have been digitized, now they have to diversify their payment offerings.
- QR code payments will increase.
- Voice activated payments will gain momentum.
- Contactless payments: COVID-19 will be the great catalyst for digitizing transportation payments infrastructure around the world.
BPC Banking Technologies, a company that offers intelligent digital solutions and works with banking institutions and neobanks, presented its forecasts for the digital payments market for 2021.
“It cannot be denied that COVID-19 is the greatest challenge facing cash transactions. The industry has never seen such a drastic change in payment options with the replacement of cash payments to digital media. Mobile and contactless payments were the protagonists of the past year and offered solutions that go beyond the hygiene problem associated with the use of cash, ”said Santiago Egas, Senior Vice President and General Manager of BPC Banking Technologies.
The introduction of new means of payment gave people and businesses around the world access to the digital economy. However, we are only just beginning to reinvent payment experiences.
According to BPC Banking Technologies, these will be the four trends that will determine the way payments are made in 2021:
1. Retailers have been digitized, now they need to diversify their payment offerings
Merchants responded very well to the pandemic by moving to e-commerce, but the work is only just beginning. The diversification of payment methods will be the crucial step in 2021. As consumers continue to use e-commerce and frequently interact with merchants from whom they have not previously purchased, the demand for new digital payment methods will increase. able to meet customers’ safety concerns.
“The ability to pay cash on delivery, tokenization, fingerprint biometric cards, phone-to-phone payments, as well as a variety of more traditional card payment options will help create a landscape where consumers can be based on convenience, personal preference and decisions knowing that you are protected from financial fraud, ”explains Egas.
2. QR code payments will increase
In the pursuit of truly contactless payments during the pandemic, these methods will continue to demonstrate their flexibility, especially in emerging markets, largely because they are easy to use and inexpensive to implement. For the next year, this payment method is expected to be even easier to use thanks to its integration with digital wallets.
“Today’s QR code payment solutions require an application that can only be used in one company. In developed markets, popular digital wallets that are already available on consumer smartphones like Apple Pay, Samsung Pay and Google Pay are becoming more accessible. Customers no longer have to download separate applications, but can make a purchase using their preferred wallet, “says Meyer Saavedra, sales director and solution advisor for Latin America at BPC Banking Technologies.
3. Voice activated payments will gain momentum
Although artificial intelligence has made important advances in other areas of life; Its application in the world of payments is only just beginning to be recognized. Voice activated payments can be used to confirm transactions in other applications, e.g. B. with providers of grocery deliveries. We see how some retailers have integrated purchasing models that are activated by voice input.
“Chatbots with speech-to-text and text-to-speech conversion are the features that have become more accessible to the industry, and they will be protagonists in the transformation of the way we make payments within applications. Digital banking applications that offer this function enable their customers to give instructions on transactions and initiate bill payments with just their voice, ”explains Meyer Saavedra.
4. Contactless payments: COVID-19 will be the great catalyst for the global digitization of the transport payment infrastructure
COVID-19 has been the catalyst for governments around the world to adopt digital services. This is particularly evident in the transport sector, where we are gradually discovering that individual ticket sales systems with a fragmented approach are already digitizing elements of the infrastructure and being replaced by end-to-end services.
“The implementation will mainly take place in the smaller cities of the industrialized countries as well as in the emerging countries, where massive amounts of cash are used. The benefits of paying with a simple touch go well beyond maintaining social distancing, as we hope citizens will be ready to use cashless payment methods in other environments, ”concludes Santiago Egas.