It is quite evident how the technological landscape has evolved over the years, changing almost every major aspect of our life. One thing to notice is how the age of digitalization has affected payment processing.
Now, when Covid-19 has struck globally, what kind of further changes can we expect in payment trends?
The Pandemic Has Accelerated Growth of Cashless Society
When the world was already tilting towards online payments and transfer of money, Covid-19 proved to be a final blow to the widespread use of cash.
More and more people learned about contactless payments and preferred it as a reliable and fast mode of payment. There is no doubt that Covid pandemic only accelerated the use of such digital payments.
As a matter of fact, data from the previous years indicate that there has been a 14% increase in the digital payment transactions in the year 2020.
The key factors for growth were not only social restrictions during 2020 and 2021 but also a share increase in the number of available computers, laptops, and mobile phones that facilitated Ecommerce.
The cashless system has proven to be convenient in more than just one way. Your money is secure, easy to access, quick to move, and you can make use of digital funds in your account for many purposes. And for sure i want to mention the hottest funds in the market robinhood unsettled funds as well.
Businesses and Large-Scale Companies are now Quickly Joining the Race
The main aim of a successful business is to provide what its clients are looking for. This means, if they perfect contactless payments and e-checks, you give them just that!
Consequently, companies and firms have also embraced new cash methods and the trend is expected to catch up quickly to small businesses as well.
Amidst such a shift, those companies that can quickly expand their digital offerings and provide a digital wallet solution would definitely stand out. There are enough statistics to support that cart abandonment rates are highest when an online merchant lacks the option of payments via money apps on online banks.
Such findings speak volume about how the world is moving away from cash transactions and growing more comfortable with the use of online currency.
Open Banking Is Another Global Trend That Is Expected to Be on The Rise
The concept of open banking has made its debut in large markets and it is expected to improve over time. Currently, insight into adaptation of open banking shows that the figures stand somewhere around 30% for small businesses and 40% for large companies with an expected 7.5% growth in the next year.
The change is not without its price though.
Some leading banks still resist open banking as it is expected to slow down growth. However, as compared to the benefits that it bears, calculated risks seem to be less troublesome.
Open banking can help large financial institutes to proceed with real-time credit transfers while attaining complete customer information and trust. It would also improve safety management ensuring that all money transfers are smooth, fast, and more cost-effective.
Although complete replacement of cash is not an easy task, the process has begun at a remarkable pace. Keeping in view how the payment trends are expected to change with coming years, it will not be wrong to say that thoughtful planning can put start-ups and small businesses ahead of their competitors.
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