New digital payment methods

The economy, money, and the way we make payments have undergone several changes since Stone Age times. Our world is becoming increasingly digital, and so is payment processing. Businesses and consumers are interested in faster, safer and more convenient payment methods. These are digital payment methods.

With the health crisis of 2021, we understood that cash has become obsolete. Contactless transactions are strongly desired because to better manage this health crisis, we must keep a certain distance.

But before introducing you to these new payment methods, let me tell you a few things about digital payment. But before you start, here is a premium training that will allows you to know all the secrets to succeed in the Podcast.

?? What to know about digital payments?

A digital payment is sometimes referred to as an electronic or digital payment. It is the transfer of value from one payment account to another using a digital device. These devices can be a smartphone, point of sale, computer, etc.

What is mobile payment?

There is no single, universally accepted definition of digital payments. Digital payments can be partially digital, mostly digital, or fully digital.

For example, a partially digital payment is one where the payer and payee use cash through third-party agents, with providers performing digital bank transfers in the backend.

A primarily digital payment can be one in which the payer initiates the payment digitally to an agent who receives it digitally but the payee receives the payment in cash from that agent.

Therefore, the definition must be fit for purpose. One definition emphasizes the payer-beneficiary interface as the defining element. Another defines digital payments based on the payment instrument or some other variable.

Article to read: The role of a financial advisor for your business

These definitional choices become particularly relevant when the goal is to estimate the number or share of digital payments in a use case. The definition of digital payments determines how they are measured.

The benefits of digital payments

By any definition, we know some things for sure. Digital payments offer significant benefits to individuals, businesses, governments or international development organizations. The benefits of going digital include:

• Cost savings thanks to increased efficiency and speed.
• Transparency and security improving traceability and accountability, thereby reducing corruption and theft.
• Financial inclusion by increasing access to a range of financial services, including savings accounts, credit and insurance products.
• Women's economic participation giving them more control over their financial lives and providing them with greater economic opportunities.
• Cumulatively inclusive growth. The benefits described above help open up economic opportunities for the financially excluded and allow for a more efficient flow of resources in the economy. There is strong academic evidence on the impact of the widespread adoption of digital payments on reducing poverty (see Jack and Suri, 2016) and on advancing the Sustainable Development Goals.

As you have understood, digital payments offer many advantages. These benefits range from accelerating financial inclusion to saving financial transaction costs. Now let's make way for these new payments.

?? Digital means of payment

Various digital payment methods are trending today. Here are some of the most popular payment types to implement as a business.

#1. Devices with biometric authentication

Customers are going digital with their payments, increasing the need for security. Biometric authentication is a form of verification that uses fingerprint scanners, facial recognition, iris recognition, heartbeat analysis, and vein mapping to prevent identity theft and fraud.

Currently, many phones with digital wallets like Apple Pay and Google Pay use fingerprint or facial recognition. But additional options are in the works.

For example, Visa is testing a biometric payment card which will allow users to authenticate a transaction by touching a sensor on the card that can determine if the fingerprint matches instead of entering a PIN or signing a receipt.

#2. Mobile point of sale

Convenient payment processing should be a top priority for businesses today. Mobile point-of-sale systems are tablets, smartphones, or other wireless devices that use an app and card reader to process payments like a cash register.

This gives businesses the freedom to eliminate a central payment area and accept payments from anywhere in their store, and even offsite. For example, you can take your payment system to a trade show and other offsite locations.

This without worrying about how you will carry out the transactions. Customers can swipe their cards from credit or debit using the card reader connected to your device and instantly make a purchase. It's as simple as that.

#3. smart speakers

Voice commands are no longer a futuristic concept. Thanks to smart speakers such as GoogleHome, Apple HomePod and Amazon Echo, consumers can give a voice command to make an instant payment or purchase.

Some consumers worry that this is not the safest way to shop. With this kind of growth on the horizon, it will be important to optimize your online store for voice search so that your business is easily recognizable through tools like smart speakers.

#4. Contactless payment

There are various mobile payment apps that allow users to transfer money. To purchase products, pay bills and perform virtually any other type of financial transaction. All at the touch of a finger. By creating an account and storing your payment information there, purchasing goods and services using a mobile phone is quick and easy.

Examples of this technology include Venmo, PayPal, Google Pay, Apple Pay and Samsung Pay. These technologies are ideal for peer-to-peer payments. Allowing customers to make electronic payments with their mobile app offers convenience that can't be matched. All these means of payment are called payment gateways. Check out this article to learn more about difdifferent types of payment gateways

Contactless payment methods incur costs. First, you will need to purchase NFC-enabled card terminals. There is no charge for accepting Apple Pay and Google Pay.

But like all other credit card transactions, rates and fees apply when consumers use a credit card to pay for goods or services at your store. (These transactions are considered card-present transactions.) You can check with your processor these specific rates.

Many consumers turn to these methods because they feel it is a safer and faster option. And, for the many consumers who always have their phone in their hands, it's much easier to access.

Contactless payments are not limited to mobile wallets. The new credit cards are also equipped RFID technology used for contactless payments. With a contactless credit card, customers simply hold the card near the card reader. They no longer need to swipe their card, insert it into a card reader, or even tap it against the terminal.

#5. Social media payment options

Social networks have expanded their reach to include payment solutions such as money transfer. An overwhelming number of millennials are turning to social media when looking to buy. Facebook, Instagram, and Pinterest all offer business accounts that allow brands to sell to consumers. Digital payment transactions are made directly on the site for a small fee.

#6. Facial recognition payments

Facial recognition payments are starting to happen in a number of countries. They are likely to be a popular addition to the portable payment technology that is now widely used.

With these contactless payments being favored due to the coronavirus pandemic, facial recognition payments are taking off. There is no need to have a smartphone, bank card or any other form of identification, or even enter a PIN. The system is simple. A customer signs up for the offer from their phone.

Then takes a selfie with his smartphone and finally adds money to his Pop Pay account. Using a credit card or bank account, he funds his Pop Pay account. When it comes time to pay for their meal, they look into the camera of a tablet or PopID kiosk. Then the cashier checks their name and the money is withdrawn from the account.

Facial recognition payments are most widely used in China. In 2019, some 1000 convenience stores installed a facial payment method and more than 100 million Chinese have registered to use the technology. Alipay, the payment service operated by e-commerce giant Alibaba Group, and its main rival Tencent's WeChat Pay, fuel the trend.

Is your business ready? These are some revolutionary payment methods we have today. Before you leave, here is a training that allows you to master trading in just 1 hour. Click here to buy it

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