The modern payment processing system is an intricate network of banks, merchants, consumers, and payment processors. In the last decade, we have seen a massive shift from physical payments to digital payments. The usage of cash, credit cards are now shifted towards digital payments through eWallet payment system, mobile payment apps, UPIs, and EMV.
Smart devices, online sales, mobile payments are not only changing the way customers find and pay for goods, but they are also altering the way payment processors facilitate, accept, secure and authenticate the payments.
The mobile payment technology is developing rapidly, and so do the mobile payment adoption rate. According to the research, mobile wallet payments are accounted for $75 billion in 2016, and they are expected to reach $500 billion by 2020. The innovations in the mobile wallet app development are shaping the future of how the customers make payments and how the mobile payment empower those transactions.
Digital wallets are one of the most popular trends, concerning future or mobile payment technologies. They can be referred to as the electronic devices or online service, that allows the users to make electronic transactions. They offer convenience, speed, scalability, and security for the users.
1. The privilege of mobile apps
Digital wallets gained immense popularity recently because they are straightforward for consumers to use. They download the digital wallet app on their mobile devices, add payment information, authenticate their details, and using their mobile phones are the payment method instead of paying cash and credit card.
It is integrated with many security layers. User authentication and other features like not entering the credit card details on websites, not giving the credit or debit card to the cashiers are some of the top reasons for their popularity. Samsung Pay, Apple Pay, Google Pay are some of the popular digital wallets that are revolutionizing the way users transact for their desired services or products.
2. Digital Authentication
Mobile wallets provide convenience and ease to the users, but accessibility is not everything. Security is the top aspect of having a digital wallet. With the latest technology, there is enhanced security like dual authentication for use, pin, and even biometric authentication. Besides, smartphone makers are also implementing biometric technology in their devices, ensuring that only authorized users can open the digital wallet and make a purchase from their smartphones.
3. Declining use of Physical Payment Cards
The growth in mobile money solution indirectly affects the decline of physical payments through cash and credit or debit cards. Although credit cards are still dominating the developed and under-developed countries, their details are stored in a digital wallet for making electronic transactions. The ubiquity of cards is continuing to stay, but the actual use of the physical card is going away. The mobile payments like digital wallets, P2P transactions are minimizing the needs of physical cards.
Furthermore, future payment processors will be able to handle a variety of payment options like traditional cards and mobile wallets. The NFC commonly known as Near Field Communication is shifting the way consumers and merchants conduct the transition, reducing the requirements of physical forms of payment.
4. Mobile Point of Sale
Mobile point of sale is wireless devices dedicated to conducting transactions for merchants. mPOS units are space-saving, comfortable, and wire-free way for merchants to accept payments from their customers.
The flexibility of mPOS enables the merchants to complete the transactions wherever the customers are. There is no need for a unified checkout place. The customers can only checkout with any of the salespersons without standing in the queue. The mobile point of sales is not just like a bursting bubble, it is the future of mobile payment technology. Thus, mobile point of sale and digital wallet together creating a wireless economy.
5. Better online shopping
Whenever users are scrolling their social media accounts, they jump into the advertisements of their favorite products or services. Social media is the best marketing tactic for businesses. The digital wallet can be integrated with social media, where the customers no longer need to leave the app and click the buy button and start buying their desired products without leaving the app.
A digital wallet can streamline the online shopping experience, which requires flexibility, active mobile payment processor. The mobile shopping cart can be integrated with social media technology to create a new future of mobile payments.
The future of mobile payment technology is conquered by digital wallets and mobile point of sale. While there is room for improvement, the future of the digital wallet is bright. The mobile wallet app development company can integrate automated payments, intuitive clicks to outstand your digital wallet from the rest. The automated payment capabilities of digital wallets signify the future of mobile payments, payment processing, and payment gateways.
Nikunj Gundaniya, Product manager Digipay.guru, one of the leading digital wallet solutions, which provides mobile finance application development services. He is a visionary leader whose flamboyant management style has given profitable results for the company. He believes in the mantra of giving 100% to his work.