In our ever-changing society where technological innovation surrounds us at every turn, there is no question that digital payment technologies have already made a significant impact and will only continue to flourish. Advances such as contactless and mobile payments are undoubtedly improving daily business efficiencies, thus adding value to routine tasks in both consumers’ and business owners’ day-to-day lives. Similar to advancements in other industries ranging from medicine to space to education and telecommunications, the goal of developing progressive tools is ultimately to improve and enrich peoples’ lives. Digital payment technologies saw major breakthroughs in 1998 with the beginnings of modern POS systems. In less than 20 years the digital payment technologies landscape has revolutionized the way we pay and to some extent the way we live.
High Growth Digital Payment Technologies
Mobile wallet payment involves paying for products via cellphone or Smartphone app. Nowadays we have the technology infrastructure available from Apple and Android to support this rapidly growing form of payment. In a report from Neilson.com, it was stated that 29% of Canadian Smartphone users are actively using their smartphone as a mobile payment method. Awareness of the existence of mobile wallet technology is at 99% but only 57% ever utilize mobile wallet means of payment. Out of the 57%, 13% users are using it as their primary method of payment and 44% are using it as a secondary method of payment.
There promotional tactics available for retailers, banks, manufacturers to encourage more Canadian consumers to jump on the mobile wallet bandwagon. For example, mobile payers across Canada are open to becoming mobile wallet users given the right incentive to do so. In fact about 76% of participants surveyed said that they would be motivated to make the switch to more exclusive mobile wallet payment if there was a compelling reward program in place, while 75% said they would increase usage of mobile payments if more businesses owners readily supported the convenient technology. Lastly, 74% would like to see mobile wallets integrated into their favourite rewards programs to ensure they can redeem rewards points immediately.
Bitcoin is an alternative digital currency used online. Created by a Japanese programmer in 2009, it is solely a peer-to-peer payment transferring system. Bitcoins can be sent to other bitcoin users through a medium called Bitcoin Miner. Mining requires work for one bitcoin, which is pre-determined by a network to keep it “predictable and limited.” Similar to a mobile wallet, bitcoin shoppers keep their bitcoins in their digital wallet and can buy anything with that currency. Some examples may include T-shirts, chemicals, musical instruments, virtual art and countless other products and services. The value of the bitcoin changes from day to day.
Here are some advantages and disadvantages for using bitcoin:
- Bitcoins are exchanged between individuals with no middle person
- It’s an international currency
- Transaction fees are minimal
- Exchanges can be challenging due to transaction script
- Bitcoins are traded publicly, so privacy issues can arise
- Bitcoins aren’t backed by regulatory standards and aren’t insured
Direct debit payment pre-authorizes debit on the payer’s bank account initiated by the payee. Direct debits allow the payer to authorize the payment order in advance, which is then transferred (digitally) by the payee via automated bank account withdrawal at the schedule time for payment. A common example would be paying for credit card bills, phone or utility bills…etc.
Traditional Retail Card Payments
Card payments at retail are very commonplace and simply entail paying for goods or services with credit cards (MasterCard, Visa, and American Express). Card payments usually involve the payer presenting their card at the terminal, and either tapping the card to pay or entering a PIN.
How to Popularize Digital Payment Technologies
Although digital payment technologies have definitely taken off in the past 5 years, there is still a significant minority of consumers who are reluctant to adopt making payments online and via their mobile device.
Here are 4 tactics to facilitate making digital payment technologies more mainstream:
- Lower costs and increase efficiency
Most late adopters refrain from using digital payment technologies because they are wary of security measures protecting their privacy. Therefore, if there is an increase in communication of high security standards plus the efficiencies in transfer times, it will help to garner more clients on more modern payment platforms.
- Increase payment speed
With some systems there can be a lag of 3 to 5 days delay on successful transfers via various digital payment technologies. This delay significantly makes users nervous about digital payment technologies and should be minimized with a payment processing partner who supports the latest solutions where payments are instantaneous.
- Contextualize commerce
People want to pay with convenience. Therefore they want businesses and technologies to make it easier for them to pay. The reason why digital payment technologies soar is because of contextual commerce, in which anything people see that they like, they can buy instantaneously. Contextual commerce means showing up everywhere — especially on social media platforms such as Instagram, Pinterest and Facebook — making impulse-buying even easier.
- Eliminate physical cards
Digital payments will be more effective if consumers don’t have to pull out their wallet to pay. The fewer steps, the better.
What to Expect with Digital Payment Technologies in 2018?
As we are already in the third quarter of 2017 industry leaders in digital payment technologies are suggesting the following three trends that will impact how people want to pay in 2018:
AI and machine learning
Al and machine learning work hand-in-hand to both learn and replicate human behavior, which has already been picked up by certain organizations on enhancing overall customer experience. Furthermore, Conversational AI platforms (CAPs) are being developed to introduce new means of advanced analytics and intelligence where conversational applications will be used to a greater extent in 2018 for payment applications.
AR, VR, and 3D-graphics
Experiential retail – a trend that resulted from traditional retailers wanting to involve their customers more by providing a higher satisfaction shopping experience will now include AR and VR technologies that immerse shoppers into shopping. The capability of both AR and VR is expected to further enhance customer experience while improving brand awareness and loyalty in 2018.
According to Smart Insights, mobile commerce is expected to double and become a $250 billion market by 2020, in that retailers will continue to be affected by rapid growth in Smartphone usage for a wider variety of common tasks. Mobile commerce has the ability to transform and dictate how retailers and consumers interact.
What are the Benefits of Partnering with MONEXgroup on Digital Payment Technologies and Solutions?
MONEXgroup’s Mobile Checkout technology enables businesses on-the-move to grow their existing business by offering real-time payment processing services via Smartphone or Tablet. Merchants can use their everyday existing Smartphone devices to accept secure payments and enjoy the freedom of mobile commerce. The Mobile Checkout application supports advanced functionalities including E-mail / SMS receipts, calculation of Gratuities, and an image-based product catalog with pricing. Moreover, MONEXgroup is the one and only payment processing company in Canada that integrates unattended Contactless Only payment technology into any Self-Serve Kiosk or vending machine with PCI certification for Visa payWave, MasterCard Tap & Go, Interac Flash and Mobile Payments such as Apple Pay and Android Pay. Our exclusive Contactless Only payments module is currently being deployed at tire inflator machines at gas stations nationwide, so customers will no longer dig for change when pumping their tires. This is Canada’s first successful implementation of a Contactless Only payment interface that is fully PCI compliant and certified by the major card brands. For more information please visit our website or call 1.866.767.7253 for more information!
When partnering with the number one payment processor in Canada; MONEXgroup will increase your efficiency and quality of service and lower the related costs. Request a Cost Comparison Analysis today.