2020 is not even over yet, but today we can safely say that this year has changed lives and destinies of many companies. These changes have affected all spheres of activity, in particular, the sphere of payment processing. There is no doubt that in 2021 we will see a completely different future of digital payments. What will this future be like?
We will try to answer this question right now. In addition, we will look at some of the most important trends in the field of payment processing, which we can expect already at the beginning of next year.
Greater Demand for Quality Customer Service
The crisis of 2020 has made many companies seriously nervous. But even when the situation with the COVID-19 has relatively stabilized, the level of customer income has not increased. The world has not seen such a fierce battle for every customer for a long time.
In order to win in this struggle, it is important to provide customers with the best service conditions, and make the buying process as convenient and fast as possible. Clients must be sure that all payment methods are available to them, from payment cards to mobile wallets. If the preferred method of payment is not acceptable, the client is likely to choose another company.
In 2021 more than 30% of the world’s population will use mobile wallets, and every year this figure will increase. It is very important to choose a payment provider that will provide you with all the opportunities for fast and convenient payments, also providing the best conditions for work and all the necessary equipment.
Growth of the Importance of AI and Machine Learning
Machine learning and artificial intelligence in 2021 and beyond will be in the field of payment processing. With the help of these technologies, companies will be able to reduce customer service costs, making this service more convenient. Thanks to chat bots, customers will receive instant answers to their questions and as a result, the degree of satisfaction with the company’s service will increase.
Artificial Intelligence will optimize sales and the process of inventorying and implementing reward systems will become easier.
Biometric authentication did not appear in 2020 and not even in 2019, but we can confidently say that in 2021 its popularity will increase on an unprecedented scale. During the crisis, fraud and identity theft are becoming more and more common, and thanks to biometric authentication, it will be possible to significantly improve the security of personal data of the user and his finances. Thanks to this method, no fraudster will be able to hack your digital wallet, which means you can make online payments without worrying about the security of your money. It is expected that in 2021, biometric authentication will be implemented in more than 90% of companies around the world. These companies will be able to increase the level of customer loyalty. Today, 62% of all companies in Europe have already implemented this authentication method and another 24% will join them in 2021 and 2022.
Growth of Mobile POS-Terminals
It is expected that in 2023 the number of transactions carried out through mPOS devices that connect to smartphones through a standard headphone jack will increase by 3 times. However, this trend will become popular back in 2021. According to Juniper Research, 87 billion operations will be provided through mobile terminals by 2026. And if we go back 7 years, we will notice that in 2014 this index didn’t exceed 3.2 million transactions.
Further Development of EMV Technology
The theft of bank cards has now become commonplace. But in order to solve the problem, it is too little just to admit that it exists. Of course, the further development of EMV technology will partially solve it. This technology will protect customers and reduce their losses caused by fraudulent operations with forged and stolen cards.
What Does This Mean for Companies? It is simple. Being confident in the security of card transactions, customers will increasingly use them for payments, which will increase sales and profits of firms.
Incredible Boom of Mobile Payments
According to some forecasts, already by 2030 the share of mobile payments will make about 70%. Today every person spends more than 4 hours a day with a phone in their hands. Such companies as Facebook understand this very well, that’s why they introduced the possibility to buy necessary goods in 1 click in social networks. Other companies also understand this in an effort to simplify the process of buying goods.
P.S. Many thanks to Mike Torbanyuk for providing such a valuable material.