In the coming years, prime advancements in technology, huge alterations in consumer purchasing behavior, modifications in government protocols and guidelines, sharp ecommerce development, and the global proliferation of connected devices have driven considerable fluctuations in digital payments.
Fortune Business Insights™ states that the global digital payment market size was USD 3.53 trillion in 2018 and is projected to reach USD 19.89 trillion by 2026, displaying a CAGR of 24.4% during the 2019-2026 period.
With the developing payment market, strong competition is corroding margins for traditional players. Moreover, novel digital services commenced as a result of groundbreaking and novel market entrants generating a fresh service pattern that traditional providers. This wave of innovation and competition is stimulating traditional payment providers to accept value-driven digital renovation; developing their offerings to generate fresh value for consumers, partners, and themselves in ingenious and engaging methods.
The exciting news is that a few of the major globally important traditional payment providers have currently conducted big steps to get ahead of these alterations. For instance, Visa and Mastercard have presently made major capitalizations in data aggregation and insights to assist them to expand their services, generate value in novel ways, and scheme a clear path forward in today’s altering payments scenario.
Today’s digital payment services and gateways create and collect huge volumes of data that can be monetized. Payments’ data can be utilized to understand customer requirements, contextualize other customer’s journey records, personalize customer experiences, and also tackle scams through the identification of malevolent authorizations and duplicitous payments.
Three Developing Ways to Digital Payments Success
In order to adapt to technology changes, traditional payment service providers experience a rough choice. There are three primary methods that can aid them to remain competitive:
- Modification: Altering how services and platforms are capitalized
- Collaborations: Building value-driven mergers and ecosystems with end-to-end organizations
- Development: Offering robust customer experiences when compared with the competition
COVID-19 Impacts on the Industry
The COVID-19 pandemic has solved the requirement of embracing digital methods more than ever with social distancing attaining major significance and the indecision of the pandemic’s end fueling this necessity ahead.
According to American Express, cardholder expenditure was majorly impacted, owing to the COVID-19 pandemic. With businesses extending contactless payment preferences to entice customers, the contactless feature is witnessed to have become a unique selling point for businesses across the globe. Attributed to such advancements, banks across the world are anticipated to collaborate with mobile payment providers to extend their banking services. Further, lockdown has enhanced the implementation of contactless as well as wallet payments. E-wallets are perceiving an augmented momentum for Peer to Peer (P2P) transfers, bill payments, and Customer to Business (C2B) payments for fundamental services due to the ban on mobility and repulsion toward cash exchange. Nevertheless, a few wallet offering companies have increased their fees for suppliers and clients, resulting in vendors not accepting their wallets for businesses.
Below mentioned is the list of the top 10 players operating in the market.
- Alipay.com Co Ltd
- Amazon.com Inc.
- American Express Co.
- Google Inc.
- MasterCard International Inc.
- Microsoft Corporation
- PayPal Holdings Inc.
- Samsung Electronics Co. Ltd.
- Visa Inc.
Cashless Society: The Prospect of Digital Payments
The monetary facilities ecosystem has developed extremely over the last few years driven by an upsurge in electronic payments. This elevates the question of where digital payment technologies will lead us in the future, and how will this impact consumers? The greatest challenge for both merchants and monetary establishments was the promptness of that alteration. It has been extremely challenging to keep pace with the fluctuating methods as one has to accept appropriate processes, implant the correct accuracy, and have the suitable technology in place. Without it, it’s nearly impossible for any establishment to act safely and comply with all protocols. Merchants have to acclimate rapidly to novel approaches of digital payments to serve customer requirements, but at the exact time safeguard all these novel online transactions.
As safety is supreme, digital payments should not only be official but also be legitimate as well. From a supervisory outlook, sturdy customer verification, utilizing two or more authentication aspects, for online payments is in place throughout the EU and is being expansively embraced throughout the globe.
About the author:
Krishnali is passionate about creative writing and clutches every opportunity to deliver precise articles. She has a Bachelor’s degree in Mass Communication. Apart from writing, Krishnali is a trained classical dancer, loves painting for leisure, and is fond of experimental cooking.