Increased mobile penetration and a growing level of consumer comfort with making payments via smartphones is changing how consumers pay for goods and services. In most countries in the world, cashless payments are becoming the norm.
The acceptance of contactless payments and decrease in use of cash is directly impacting consumers purchasing habits and buying behavior. In addition, the advent of supporting technologies and IOT based technologies is directly impacting how consumers shop.
2020 will be a turning-point in how consumer payments are made. Below are eight reasons why post 2020 payments will never be the same.
1. Less Use of Cash
Hands-down, the world is moving to being cashless. Statistics from all regions in the world indicate that the use of cash has declined in recent years. Most counties in the world are either adapting or are in the process of making cashless payments a significant part of their monetary process. In 2020 this trend will not only increase…but will explode.
The outlook for wearable technology payments in 2020 looks very promising. There is no doubt that companies will continue to create new devices, improve old devices, and try to make traditional payment methods obsolete. According to Tractica the wearable payments will amount to about $500 billion by 2020, from $3 billion in 2015. The majority of that growth will most likely come from smartwatches as they are the biggest driver in the growth of wearable payments.
3. More eWallets
eWallets use will continue to grow in 2020. More and more retailers will accept virtual
payment via eWallets–and more consumers will be paying for their groceries, bills, transport, food, drinks using eWallets. The adoption of eWallets will be unprecedented in 2020.
4. Peer-to-peer Payments
In 2020 peer-to-peer payments will become mainstream. Consumers need and expect a secure, convenient alternative to cash when making payments to friends, family, or peers. 2020 will see the onslaught of new and more sophisticated peer-to-peer apps. Nearly half (2 in 5) of U.S. consumers have sent or received money using P2P, and the service is expected to grow in the U.S. from 69 million users in 2015, to 126 million by 2020.
5. Layered Based Authentication Methodologies
Long-gone are the days of single form authentication. In 2020 acknowledgement of the value of multi-level or multi-layered authentication will continue to expand. Static authentication, in the form of tokenization, password/username, SMS based and biometrics will simply not cut it. Consumers will be unforgiving to “learning-curve tedious” profile creation approaches like behavioral biometrics.
The authentication methodology of the new decade will be layered based, combining different forms of fraud and authentication indicators. Identification indicators that weave data derived from the mobile device, the user’s behavior patterns and transaction data.
6. More and More Regulations
2020 will be a year of continued regulatory and compliance requirements across the payment ecosystem. Vendors will be required set data sharing standards and enhance data security to meet public and regulator concerns. Throughout the world payments will be more regulated and scrutinized by compliance watchdogs.
7. New Payment Verticals
Digital payments have been traditionally associated with financial, eCommerce and recently eWallet sectors. In 2020 established online and digital payments will be joined by new and unique business sectors. For example, one f the fastest growing sectors to use digital payments will be oil and gas/pump companies (and adjacent convenience store). Paying using a mobile phone at the gas pump will become more familiar to consumers in 2020.
The use of mobile payments in the mobility sector will boom in 2020. Commuters will be using mobile apps to pay for transportation. Paying for a bus, train, renting city bikes, and using scooters will be done using a mobile app. And many instances paying for all your urban transportation needs will be done with one application.
Additional verticals that will be utilizing mobile payments in 2020 will be online cannabis orders, contactless vending machine payment and other.
Clearly, the payment ecosystem is undergoing a massive change and 2020 may be perceived a milestone year. A kind of before, and after milestone. Mobile payment fraud prevention and authentication vendors that can foresee the challenges and opportunities that lie-ahead will thrive.
If “timing is everything” then Paygilant is exactly where it needs to be.
Paygilant functions as a hub for mobile payment providers, seeking for a fraud prevention & user authentication in a single solution. Its secret sauce includes six intelligence sets – device DNA, User Space, Activity Map, Bio Markers, App Insights, Transaction View – effectively distinguishes between legitimate customers and fraudsters.
Without impacting and imposing on the user, Paygilant runs in the background to trigger a high-risk alert when fraud is identified and a low one when the customer is successfully identified. Utilizing its machine learning algorithms,
Paygilant provides ongoing and continuous data analysis to ensure that transactions are approved only for legitimate users
Happy New Year… to a great 2020.