The financial industry has been at the forefront of digital innovations that are shaping the future of how we make purchases and pay for services. With convenience, security and optimal automation at the center of innovations, it has become easier for consumers to use different types of technology to securely make payments.
The future of payment technology has been determined by a few factors and 2020 feels like an exciting year in terms of innovations and development of more tools.
Biometric technology has offered an extra layer of security and facilitates transactions from anywhere. This has come as a much-needed relief for many consumers. The use of biometrics in finance is a pivotal step in evolving finance security systems. Biometric data is a sure way to identify that the correct account owner is conducting a transaction.
The development of secure identity authentication will mitigate fraudulent activities, such as credit card theft and identity theft. The use of biometric technology allows its users to feel more secure and ensure that they are still secured beyond the pin.
Biometric technology is still developing; however, certain financial institutions have started using fingerprints, facial recognition, and iris scans.
The evolution of cryptocurrency
Cryptocurrency has taken the world by storm and reached levels of success that were not anticipated just a few years ago. The decentralized form of currency has made its way into the commercial market and most consumers are aware of how to buy bitcoins. This form of payment is becoming a legitimate form of payment that changing the way people transact.
Due to its high volatility, cryptocurrency value is determined by market activity and you can make huge profits from just buying one Bitcoin.
Cryptocurrency also introduced blockchain technology to finance, which allows a specific level of transparency while ensuring privacy and anonymity. Although many concerns have arisen about the use of cryptocurrency, it continues to thrive in the markets.
The incorporation of AI and voice technology
The development of technology like Amazon’s Alexa and iPhone’s Siri has prompted the development of merging virtual assistants into making payment. This type of technology allows consumers to simply give a voice command to complete a transaction.
This allows for ease in shopping and is probably one of the most advanced forms of payment technology recently developed.
Although it has been widely used as yet, the trend might pick up over the next few years as developers create ways to merge their online stores with voice assistants. This is another development with an extra layer of security to ensure that customers are transacting with ease.
Mobile payments cancel out the need for a card or credit card where you need to enter your pin. Mobile payments allow you to make use of mobile wallets and other forms of payment that do not require contact with your card or entering a pin.
This has paved the way for in-store mobile payments where a customer can use a contactless method to make a payment. The mobile payments industry is growing in its value, and soon customers will be able to ditch their card and make payments faster and more securely.
The bottom line
Consumers are always looking for ways to simplify their lives, yet they value transaction tools that are optimally secure. The financial industry is always under pressure to ensure optimal security because of its nature, and the innovations and trends are responding to this very pertinent need.
The year 2020 will be interesting for financial institutions as the developments from the FinTech industry begin to overtake mainstream banking and payment methods. These trends are just the beginning of a completely transformed the financial industry.