How Innovation Is Revolutionizing Modern Payments
Ever since the internet came around, payments went through a massive shift to the digital realm.
16:29 15 November 2021
Consumers have since been able to make and receive payments in ways that would not have been previously possible. The convenience is unmatched and the potential for more growth and development is even more outstanding.
It is no wonder that people are always on the lookout for the best ways to make payments and receive payouts. Modern payment service providers are always trying to lure more customers by offering amazing features and adding mind-blowing capabilities. Even though such things as seamless accessibility and intuitive interfaces may seem rather basic, they were a massive leap forward for the world.
Today, the quest to make things better continues. Several payment innovations have already taken the world by storm and more are coming up. These revolutions are essential to the longevity of many businesses. Some are, of course, more popular than others. Still, they all have an important role to play.
Online Casinos and E-Commerce Leading the Way
One thing that sets the casino industry apart from all the others is how open it is to new and emerging technologies. The sector has been very quick to embrace new and innovative populations, something that has contributed significantly to its growth thanks to advances in fintech directly affecting customer retention via added deposit methods, faster payouts and more accessibility to online casino sites. Online gambling is currently one of the most vibrant digital entertainment businesses and the seamlessness of the payment ecosystem has contributed to that in many ways.
While e-commerce tends to rely on stable payment methods, it still has a huge impact on the development of new solutions. Sometimes, e-commerce businesses even invest in payment solutions in a bid to fast-track their development. PayPal which was famously bought by e-Bay is a great example of this.
Now let's have a look at some of the innovations that are taking modern payments to the next level.
Blockchain Technology and Cryptocurrencies
It only took about a decade for cryptocurrencies to catch on. Over the past few years, these digital currencies have proven that they are capable of delivering on their promises. Crypto payments are now very common not just in online casinos but also in several notable e-commerce platforms.
Mainstream use is certainly not as pronounced as alternative payment methods but it is growing fast. To make it even better, even the mainstream or traditional payment service providers have seen the true potential of crypto. As such, even popular services like MasterCard and PayPal have started to integrate crypto payments.
Blockchain which is essentially the backbone of the crypto ecosystem is also a big deal. Financial service providers have leveraged the technology to record, store, and protect financial data. The technology has been revolutionary to both financial data security and integrity. Since it is a decentralized network, it makes hacking, cheating or modification of financial information impossible using existing resources. In addition to improving the trustworthiness of the operators, this reduces the costs while increasing the speed at which the transactions are processed. Also, reliability is almost always assured thanks to the decentralized nature of the blockchain network.
The ongoing financial services shift goes well beyond the digital space. It does not take much of an effort to see just how payments even in physical spaces have changed over the past couple of years. Much of this was triggered by the coronavirus pandemic. The need and demand for contactless payments quickly shot up mostly because it was part of the efforts to reduce the spread of the virus.
This turned out to be a game-changer for the sector. Thankfully, the infrastructure was already there. All that remained was for various operators and businesses to step to collaborate for the implementation. The touchless solutions that have since grown in popularity made use of such things as cards with chips, QR codes and apps to work. That turned out to be what was needed to spark even more growth. Even as the world continues to return to normalcy, contactless or touchless payments are here to stay.
Smartphones and other mobile computing devices such as tablets are the most used gadgets across the globe. Their accessibility and affordability have made them ubiquitous in modern communication culture and commerce. This is especially true for the unbanked or underbanked who have been benefiting immensely from the rise and massive growth of mobile payment solutions.
While mobile apps and payment services have existed for years now, the sector still records a lot of growth. Today, people are not just making payments or receiving payouts on mobile devices. They can invest and even trade in stocks right from the palms of their hands. This fact alone makes these devices the most important personal computing devices of our time. Their impact is only beginning to unravel in more innovative ways and they will be with us for a very long time.
How Operators Are Preparing for the Future of Financial Technology
If the rate at which these changes and disruptions are emerging is anything to go by, players in the financial services sector have a bit of heavy lifting to do. It goes beyond just trying to improve on existing systems. Most of the operators are likely going to have to completely reimagine their customer segments and craft better ways to deliver payments that are both frictionless and seamless.
The application of big data and Artificial Intelligence (AI) is also likely going to be vital. These will not only help to redefine our understanding of user segments but also help to improve various products and services. That will, of course, also require more robust infrastructures – the market is growing fast and being able to handle the increased volume will be key to the survival of the operators.
Further integration with advanced security and consumer protection mechanisms is also taking center stage. Fortunately, this should be a breeze as more native security measures are being built right into the devices, we use to access these services. Biometric data mechanisms such as fingerprint scanning, facial recognition and even voice recognition are getting integrated into just about every kind of modern service.
One thing that ties all the innovative things we have discussed is the ever-evolving and ever-increasing customer expectations. Keeping up with that is not very easy but it is a necessity that every financial business must take into account. The competition is getting stiffer by the day and to survive it is only logical to stay ahead of the curve by being very innovative.
For consumers, this creates a very exciting proposition. Such things as cost-effective payment solutions, faster transaction processing and more options are now a reality. That said, the future looks even brighter and we cannot wait to see how it all turns out.