The technological advancements and all the prominent corporations jumping on the bandwagon of mobile payments raised its prevalence. Due to the ongoing pandemic, the majority of consumers made payments via smartphones or on the internet during the holiday season.
Mobile payments are not restricted to payment systems via mobile devices or gadgets. Instead, it is an umbrella term that includes payments in physical stores through mobile wallets like Apple Pay, Google Pay, or Samsung Pay.
Contemporary customers now prefer mobile payments to bypass long queues at stores. The loyalty program offered by mobile wallets and the associated benefits was another reason for the hike in mobile payment usage.
This trend is eventually going nowhere, and mobile payments are the current and future of payments, with cash becoming a less suitable option for payments.
This article explains some emerging mobile payment processing trends, and conforming to them will help you provide a seamless experience to your mobile and cashless customers.
1. Better User Experience Becomes Critical
The significance of user experience in mobile purchasing is crucial at any stage. From mobile research to mobile payments, providing an outstanding customer experience is the need of the hour. Customers of the recent time value user experience to the extent that it is a fundamental determining factor in whether they are coming back. Delays in mobile payments or any obstacles will irritate the consumers, and a limited number of payment options is highly unacceptable for customers.
A well-designed website is the face of any e-commerce store. If it’s not well built for a great user experience, the bounce rate increases. Similarly, mobile cart abandonment will be high if a business lacks in mobile payments and if your approach for mobile payment customers is not up to date. The mobile payment or transaction page must be free from redirects; lags and advertisements are a big no. A crystal clear, fast, and user-friendly interface will do wonders for your business.
Ideally, every customer is looking for a single-click payment. If you are one to provide, you are way ahead of the competitors.
2. Increased Use Of Biometric Authentication
More enhanced innovation in mobile payments will not only better the user experience and make the process faster. Another crucial aspect that keeps the tech companies enthusiastic about bringing diversification in mobile payments is to make them secure and convenient simultaneously.
In the upcoming years, the incorporation of biometric systems in the mobile payment system will reduce data theft. Technology is becoming smarter, so are the thieves. Data theft is real, and it’s more manageable to steal data like passwords. Therefore, adding a layer of biometric verification will make it more secure.
Biometrics involves the physical presence of a person to execute a transaction. MasterCard introduced a program that incorporates facial recognition via selfies instead of passwords. Biometric verification will not stop here.
Many real-time quick processes like facial recognition, retina detection, voice, cardiac rhythm detection, and the traditional fingerprint method will become more prevalent. One rational approach will be to incorporate these biometric authentications now. Do not wait for the technology to become mature. This way, you will ensure your customers that you are adapting to the trend. Customers will love that they aren’t missing out on anything latest.
3. Artificial Intelligence in Mobile Payments
Artificial Intelligence is no longer a fancy word that previously, retailers used to sound smart. AI is everywhere, from AI-powered writing tools to AI payment chatbots. AI in digital payments is a rising trend, and retail companies are now recognizing its importance to reduce cart abandonment. Customers feel valued when guided, and in the online world, automating this process via AI chatbots is an excellent strategy.
AI-based Chatbots help a customer make payment easier and also gives personalized suggestions and notifications. When combined, all these factors compel the consumers to complete payments and reduce abandonment due to deficiency of information or support. Although we have seen some fraud happening via AI-Chatbots in the tourism industry. But the giants like Facebook and Alibaba have introduced payment solutions via messenger apps. Amazon is also set to join the group.
Banks and financial companies are adopting AI-Chatbots to initiate payments and give support to customers in making healthy financial decisions. Setting up AI-Chatbots isn’t very tricky and expensive. Did you know that Facebook Chatbot is free? A primary investment to set up an AI-Chatbot via a professional is recommended and worth it.
4. Moving Towards Invisible Payments
The ambition to become better and reduce human work in payment processing is the core of mobile payments. In upcoming years, you will hear more about invisible payments. Believe it or not, 90% of the buying is still done in physical stores despite e-commerce becoming stronger. Although the payment methods are evolving rapidly and in upcoming years, invisible payments will be more common.
All thanks to the Internet of Things (IoT). It will empower people to pick up anything and walk out of the store without stopping at a mobile terminal or checkout.
The payment and associated data transfer are performed over a network without any obstacle. This will involve pieces of hardware equipment like sensors, tags, and chips. Installed devices will detect the face or retina, and the transaction is completed via the pre-defined method. Notification via SMS or email will take place for documentation and transparency.
Invisible Payments are a reality, although not very common now. Amazon Go is a real-life example of invisible payments. It will further enhance the shopping experience, the initial costs will be high, but this is the future of frictionless payments.
Business is all about making profits, and every penny and every customer counts. The trends in mobile payment processing shift frequently; therefore, you must stay up to date and implement them to outshine.
We have discussed some trends, but this is just the tip of the iceberg. No signature payments, cryptocurrency for payments, and payment processing based on memberships are crucial trends in mobile payment processing.
Nobody knows your targeted audience better than you, so we will recommend identifying their buying pattern and preferred payment mode and utilizing those to provide a fast, secure, and seamless experience to customers.