At the start of this new year, it’s time to look ahead and see what technologies and trends are shaping the payment processing industry. This year, it seems like the biggest trend is convenience. Customers and businesses want payment processing to be faster, more accessible, and digital. To fit with this theme, in a recent Forbes article on consumer payments, these were some of the top benefits:
- Digital Payments: Customers are using digital payment methods like tap-to-pay and contactless mobile payments more than ever. A forecast from Juniper Research predicts that digital wallet spending will reach $1 trillion by 2025. This shift to digital payment methods also leads to fewer cash transactions, with the Federal Reserve finding that only 18% of all payments in 2022 were made in cash.
- Enhanced security through biometric payments: As digital payment tools become more popular, security features to prevent fraud are becoming more critical. Biometric tools like fingerprint or retinal scanning are becoming more popular and being integrated into more payment processing tools. Additional cybersecurity methods, like encryption technologies and other cybersecurity tools, are also being utilized to reduce consumer vulnerabilities.
- Open Banking: Customers are eager for open banking tools to share their banking information, like account balances and transaction histories, with authorized third-party providers. These tools require secure digital connections to banking institutions to exchange financial data.
As you can see, these three consumer payment trends primarily revolve around increased convenience and digital tools for consumers. Businesses must adopt new technologies and processes to help them compete. For example, in the heating fuels industry, digital payment options for invoice processing are becoming more commonplace to make things easier for customers. More businesses value the ease of making fast payments in real-time digitally without having to process invoices and check payments manually.
Here at Richmond Financial, we’re always keeping our eye on payment trends. We can help you navigate the new payment landscape and offer innovative technology solutions to simplify payment processing for your business and customers. With our help, you can give your customers the latest payment methods and technologies to make things easier. Visit our website today to learn how we can help your business keep up with the latest trends!
