As technology has advanced, digital payments have now become more prevalent than ever before. In fact, it’s projected that revenue from digital payments will increase by 8 percent between 2013 and 2018. With this in mind, there are a variety of trends you should look out for when it comes to digital payments. Here are a few of the most exciting.
1. Digital Payments Get Social
Video content is becoming increasingly important in digital platforms. Even technology leaders as prominent as Mark Zuckerberg believe that video is an important trend to watch. Forecasts also expect nearly 70 percent of traffic on the internet to come from video content in 2017, and it’s expected to grow to 82 percent by 2020. With these predictions, it’s vital to take advantage of digital payment solutions that leverage video content in order to get “social” or engage with your customers.
The good news is that current payment technology exists that makes it possible to engage with customers using digital payments. For example, you can employ in-video payments that accept credit cards online. These are embedded in your video content in order to take prospects and existing customers down the sales funnel and make a purchase. This is convenient because it’s in a domain where prospects or clients already are, rather than requiring them to wander off to a third-party site. It’s also mobile-friendly and secure for both you and your customers.
2. Customer Experience Enhancement With the Power of Recurring Payments
Getting paid on time is a pain point for many businesses. With research indicating that only 20 percent of payments are issued on or before their due dates, it’s easy for it to affect your bottom line. However, to ensure on-time payments, it’s vital to get to the root of the issue. One of the main problems with on-time payments is that clients and consumers are bombarded with busy schedules. This can make it easy to forget when a payment is due, especially if it’s a relatively small amount. Even large commercial clients can be late on their bills while waiting for payments from other sources.
To mitigate this issue, it’s important to use small business payments solutions or card payment solutions that support automation, such as recurring payments. Recurring payments are set to increase in prevalence. They create the convenience of automated payments for customers or clients so that they don’t forget to pay a subscription on time. Moreover, you get paid on time and don’t have to worry about chasing customers for payments. This works well when you are charging customers in advance for your services or products that follow a recurring schedule. Such as monthly subscription services or annual domain renewals. In the end, this enhances customer experiences by making sure they get their products and services. As well as making sure you get paid for providing them.
3. Tokenization Will Drive Mobile Payments
With an increasing amount of data breaches due to vulnerabilities in retailers’ and merchants’ infrastructures, it’s understandable that consumers are cautious about what company has access to their financial information. Research has indicated that data breaches can cost an average of $4 million per incident, and they are expected to increase in prevalence. As a result, the prevalence of EVM chip cards has increased due to its security measures.
For example, each time consumers insert their chip cards into the payment terminals of merchants, the card generates a unique identification code or cryptogram that is specific to that particular transaction. While EVM chip cards help to increase data security when making payments. They don’t hide your actual card number when you’re using it in public. Plus they can add a few seconds per person to wait time.
On the other hand, mobile payments are being used as an alternative to handheld cards thanks to tokenization. This technology reduces the amount of information businesses need to keep available. Tokenization then allows businesses to process transactions via “tokens”. These “tokens” are similar to the cryptograms created by EVM chip cards. They are essentially unique identifiers created each time you make a payment.
However, they are actually safer than EVM chip cards because your card number is not revealed. Instead, merchants receive “tokens” that can only be used for that particular transaction. Moreover, consumers and clients don’t have to worry about their information being stolen in a data breach. Even if their phone is stolen or lost, tokenization technology is often bolstered with biometric security such as fingerprint verification. As smartphones become more prevalent around the world, offering consumers and clients the convenience of making payments via their mobile devices can help create customer loyalty and reduce fraudulent transactions.
While traditional payment solutions still in use, they are susceptible to transaction fraud or may lack simplified ways to identify ownership. However, the future of digital payments stands to put these traditional payment solutions to rest with recurring payments that enhance customer experiences. Payment technology that is “social” and accepts credit cards, plus increased security with tokenization technology. It’s vital to note these trends so that your business can stay ahead of the competition. By offering your clients and customers card payment solutions that make transactions easier.