In our fast-paced business world, payment technologies are constantly evolving and changing. And it’s important for all businesses, large and small, to be aware of the current trends in online payments in order to better stay ahead of the curve.
These days, most businesses that sell products and services online rely on online payment processing. At its best, online payments are fast, convenient, and efficient, enabling customers to pay for things in a streamlined, accessible way — and encourage them to come back to your brand in the future. But if your company offers a lackluster or inefficient payment system, it could be a massive detriment.
That’s why it’s so important to watch for the latest trends in online payments — and to keep up with them.
The latest trends in online payments
1. More payment options
Your company probably accepts credit card payments from a few different providers already. But do you accept Bitcoin? What about other types of cryptocurrency? Or mobile payment wallets?
Adding new forms of payment acceptance isn’t especially difficult or expensive, and it could open the door to an entirely new segment of customers.
People who strongly prefer to pay for their goods with a niche payment method will be grateful they have the option with you, potentially increasing customer loyalty and helping to differentiate your brand from your competitors.
2. Temporary security code
If someone gets their hands on your credit card number, they can use it to make fraudulent purchases, right? Actually, this is increasingly not the case.
These days, major credit card providers are utilizing new forms of security, including temporary security codes that serve as a secondary form of authentication.
Your online payment processing system should accommodate these security features to keep your consumers safe.
3. Contactless payment
There are currently more than 800 million contactless cards in the United States and Europe alone, and that number is only growing.
Waving a credit card over a mobile phone is much more convenient than entering a long string of numbers — and it doesn’t impose any additional security risk.
4. Biometric authentication
Similarly, we’re seeing an increase in the number of businesses using forms of biometric authentication. Biometric authentication relies on the physical characteristics of a person to verify their identity; for example, facial ID or fingerprint readers can confirm that you are who you say you are, and decrease the chances of someone hijacking your identity.
While biometrics have some weaknesses and flaws, they help boost consumer trust and security overall.
5. Voice-based payments
Did you know that 35% of consumers now use smart speakers on a regular basis to buy things like groceries and home care products? That’s why so many online brands are shifting their focus to cater to voice-based payments.
Streamlining the payment process for consumers with smart speakers has the potential to reward you in many different ways.
6. Convenient mobile POS
Online payments aren’t just for consumers buying things online; they can also be used to streamline in-person purchases. With a better mobile point of sale (mPOS) solution, you can make payments faster, easier, and more secure for your customers, no matter where you choose to serve them.
Fortunately, you’ll have a wide variety of provider options here; review your options carefully and find the best fit for your brand and your customers.
7. Advanced security
Credit card fraud is a serious issue, and it’s only getting more pervasive. In the United States and Europe alone, consumers lose upwards of $15 billion in illegal transactions every year. Some of the security burden falls on your customers; it’s their responsibility to ensure their credit card isn’t stolen or misused. However, it’s also your responsibility to minimize the opportunities for cybercriminals to get away with fraud.
More companies are investing in machine learning and artificial intelligence (AI) based security, giving them the power to catch unusual activity and thwart it while also providing better safety measures to customers using their preferred payment methods responsibly.
How to stay on top of new trends
We’ve covered some of the most important trends in online payments to help you understand and incorporate them into your business. But payment trends change constantly.
New technologies emerge, customer preferences change, and agile competitors find new ways to streamline the online payment process. So how can you keep up?
1. Subscribe to top publications
First, look for major publications in the online payment processing space. Major brands in the banking and finance industry, including JP Morgan and Visa, often publish new articles and reports for consumers to remain informed.
Add these publications to your regular newsfeeds and check back regularly for new information. It’s the best way to stay informed about upcoming technologies and significant trend shifts.
2. Follow influencers on social media
It’s also a good idea to follow influencers in the online payment space. Though this industry isn’t as fun as, say, travel, there’s still a niche community of experts who are open with their opinions and proactive in finding new technologies to share with the world.
3. Pay attention to digital payment providers
You’re already working with an online payment provider, so try to work closely with them in the future. Read their blog to stay on top of new and upcoming technologies.
Talk to your sales rep or customer service rep about your top concerns. Be willing to try new products or features that roll out, and don’t become too complacent with your current system.
4. Research your competition
Finally, pay attention to your top competitors. Go through their online checkout process and learn about new features they’re adding to their website.
If they add something new or change something, it’s a great opportunity to learn more and potentially close the gap.
Keeping up with the latest trends in online payments can be difficult, but it’s much more manageable if you keep your company adaptable and commit to paying attention to the latest changes.
Be aware of new trends and technologies as they emerge — and be prepared to update your company’s offerings if and when necessary.
