How Visa, Apple & Other Payment Technologies Are Adapting for the Future

2023 will be the year of the cashless society. Payment technologies are quickly shifting to meet the demands of a digital world and its consumer base. In order to stay ahead, payment businesses must be able to respond quickly to changes in the market.

6 payment technologies on the rise

The rise of contactless payments

Contactless payments refer to payments made through a device such as a smartphone, smartwatch, or card. The number of contactless payments grew by 150% from 2019 to 2020, and this technology is a key adaptation for the future. 

Contactless payments are fast, secure, and convenient for consumers because no cash is involved. In addition, you don’t have to insert a card into a terminal and can instead simply tap your device to pay.

There are many contactless payment solutions available, from Apple Pay to Google Pay. And as more people become familiar with these technologies, contactless payments will continue to rise in popularity.

You can check out Smartpay guide on payWave — which is Visa’s contactless payment service — to learn more about this technology. 

Growing virtual wallets

Virtual wallets are digital versions of the traditional wallet, allowing you to store your payment information in one place. They are convenient and secure, allowing you to make payments without having to carry around a physical wallet. 

These payments are not only limited to peer-to-peer payments but can also be used to pay for goods and services.

For example, Apple Pay Cash is a virtual wallet that allows you to store your payment information and make payments quickly. Other virtual wallets that are becoming popular include Venmo, Zelle, and Cash App. And offering these payment options is crucial for moving your business into the mobile payment era. 

The use of biometric authentication

With the entire payments landscape going digital, it is important to ensure that payments are secure. Biometric authentication is one way of doing this, using a person’s unique physical characteristics such as fingerprints or facial recognition to verify identity.

For example, Apple Pay uses Touch ID and Face ID for biometric authentication. This ensures that only the user’s fingerprint or face can be used to make payments, providing an extra layer of security.

The upgradation of POS terminals

Classic POS terminals are being upgraded to integrated POS terminals. These POS terminals integrate with your POS software, which allows for a faster checkout experience. 

This means whenever you enter a sale into your POS terminal, it will automatically sync with your software and inventory, giving you a real-time view of your sales data.

This works the other way as well, meaning any time you enter a sale into your POS software, it will be automatically pushed to your terminal.

Overall, this allows not only for a faster checkout experience, but it also reduces the amount of manual data entry required, saving time and money.

Increased adoption of Buy Now Pay Later (BNPL) services

BNPL services are becoming increasingly popular with consumers due to the convenience and flexibility they provide. 

These services allow consumers to purchase goods now, but pay for them in installments. For example, Afterpay is a popular BNPL service that offers payment plans for purchases of up to $1500.

As more consumers become familiar with BNPL services and their benefits, they are likely to become even more popular in the future. In fact, the number of BNPL users is expected to swell up to 900 million by 2027.

Increased awareness about Escrow services

Escrow services are a way for buyers and sellers to protect themselves during online transactions. They provide a safe, secure environment where money is held until the buyer is satisfied with the transaction. This helps reduce fraud and increases trust between buyers and sellers during online transactions.

Escrow payments are proving particularly useful in the freelancing world, where buyers can pay for services knowing that the payment will only be released once they are satisfied with the work.

This means as the gig economy and freelancing platforms like Upwork and Fiverr grow, so will the use of escrow payments.

The future of payment technologies

So these were some specific examples of how the payment industry is adapting for the future. But what will consumers expect from the payments landscape as a whole in the coming years? Here are some considerations:

• Security: Consumers will expect the highest level of security when making payments. This means that biometric authentication and other innovative technology solutions must be employed to ensure secure transactions.
• Convenience: Payment solutions must be fast, efficient, and easy to use. This means that payments should be as frictionless as possible, with the least amount of steps necessary to complete a transaction.
• Innovation: Payment methods are constantly evolving, and consumers will expect more innovative solutions — like virtual reality and augmented reality payments — to come out in the future. 
• Transparency: Consumers expect transparency when it comes to understanding fees and charges associated with payments. This means that payment providers must clearly display all applicable fees before a transaction is completed.

Overall, the payments landscape is moving towards digitalization, security, and convenience. Payment providers must keep up with the changing landscape to ensure they can meet consumer expectations in the future.

As a small business, for you this means you should consider these trends when you’re choosing a payment provider. It’s important to select one that is up-to-date with the latest technology and can offer secure, convenient payments for your customers.