Online payment solutions have worked in favor of changing times. People, who have been dedicated to buying things from retail stores with cash and cards, are also moving towards online transactions for their shopping needs. Online payment systems have made payments a lot sanitary in present times. COVID has forced us to look for ways to conduct our day-to-day routine in a way that we are beginning to see everything as a possible threat.
Making payments with cash or even cards has an added risk of infection as both of these mediums involve hand-to-hand exchange. This is where digital payments come in as most efficient. We at Zaakpay have made it a point to consider the needs and requirements of both merchants as well as customers so that everyone involved in the online payments service industry can have a better experience regarding online transactions. Zaakpay is an online payment system that prides itself on being the most reliable and accurate offering in the industry currently.
In the coming days, as per a statistical report, the Indian digital payment industry is slated to grow up to $700 billion by the year 2022. This speaks volumes in terms of the acceptance of digital payments in India by the general public. In the following article, we will be discussing the future of the Indian digital payment industry. We would also be looking into 7 major trends relating to online payment processing, which would be shaping the payment industry in 2022.
7 Payment Trends That Will Affect Indian Digital Payment Industry in the Coming Years
Let us look at some of the major trends which would shape the Indian digital payment industry in the near future.
- Open Banking: Open banking is a system that allows merchants to manage consumer banking and accounts with the help of third-party applications. It is a system that is catching on with quite a pace amongst the online payment community. It has provided strength to financial applications dealing with digital payments. Open banking as a trend is being seen as the next big thing in the industry and with good reason. Today, a number of global banks have started to open their APIs to third-party providers who are licensed to carry out their business in the digital payment industry. Around the world, the open banking system has almost 4 million customers, which is expected to grow by 46% by 2026. This is possible as open banking requires customer consent for sharing data and information with their digital payment system.
- Biometric Authentication: By the use of biometric authentication online payment systems, customers can have a safer experience while making digital payment transactions. This concept of adding another layer to payment safety can lead to increased sales for online merchant as their products would gain customer trust when they are being processed in a safer environment. Security being the most important factor when it comes to digital transactions, developing digital payment solutions that mandate biometric authentication to proceed becomes the need of the hour. This technique is already being used by banks and other financial institutions but is still in its physical stage. Online transactions would be a much better avenue for biometric authentication to be compulsory for making even the smallest of payments.
- From Cards to Codes: Cash is now a thing of the past when it comes to making any kind of monetary exchange. In the present scenario, when no one wants to be physically associated with a stranger, payment codes have come into action no matter how insignificant the exchange is. This trend is the most important for the future enhancement of the digital payment industry. Payment gateway such as Zaakpay are the up-and-coming digital payment solutions that have provided a safe and reliable environment for merchants and customers alike.
- Increasing Demand for Mobile Point Of Sale: The demand for mobile point of sale devices has been increasing day by day with people moving to cashless payments. This is another trend that would contribute to shaping the future of the Indian payment industry in the year 2022. Already heavily in use for almost 6-7 years, mPOS devices enable customers to make cashless payments by using debit and credit cards. In the period lasting from 2015 to 2022, the global sale of mPOS devices is slated to show a CAGR of 47%. Mobile point of sale is a digital payment system that minimizes the use of physical currency, is convenient, and at the same time has increased safety as compared to the traditional method of payment.
- Smart Speaker Payments: Smart speakers are home assistants that allow users to make payment by giving voice commands, which are met with audio responses by the home assistance in return. As per a Statista report, 35% of customers use voice assistance for buying things online. This is a convenient option when it comes to shopping online as the home assistance also makes payments on the user’s behalf. This happens with the help of the customer data shared with the home assistance with the user’s consent. This trend has come up as a revolutionary online payment processing system.
- AI and ML as Part of Payment Systems: Artificial Intelligence and Machine Learning are also emerging as an online payment service. It is getting popular as it is one of the safest and most secure ways of making online transactions for users. To develop an effective AI for a payment system, ML is the first step. This is effective for the detection of fraudulent transactions, which are on the rise nowadays. Banks and financial institutions constantly prompt users with inquiries regarding transactions made by them. This is the direct impact of this trend. By using AI tools, banks can interpret users’ buying history, on the basis of which risky buyers are screened at the onset. This creates a veil of security for merchants and shields them from deceptive buyers for making any online payment system more effective.
- Dominance of Mobile Wallets: Mobile wallets are effective online payment solutions that have become very common with users. Customers can use such wallets to pay online or make payments in retail stores. Several merchants have made mobile wallet payments available on their e-commerce websites. The reason behind this is the dependence of more and more users on their mobile wallets, as it is much easier and safer compared to using credit cards and the information related to them.
Conclusion
In conclusion, an efficient and secure online payments service would prove to be a game-changer in the online payment industry. With India moving towards digitalization in the way it conducts business, the trends mentioned above can be helpful in building a better tomorrow for merchants and customers. We at Zaakpay support and root for such trends that are essential for the enhancement and upliftment of the online payment industry in India.
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