The payment industry has undergone a transformation in recent years. In 2020, we are going to see an amazing picture of the digital payment world. Besides, the digitalization of payment systems has added convenience and security to the transaction process. Lots of tech-savvy internet users have started relying on a digital wallet to pay for products and services.
Moreover, digital wallets have gained traction in most of the countries. Billions of users of WeChat Pay, Alipay, Facebook Pay, and WhatsApp Pay have proved the increasing momentum of the trend of using digital wallets. Google Pay is another user-friendly, globally accessible wallet, compatible with iOS and Android devices.
Furthermore, reliable payment providers have also applied Artificial Intelligence technologies for checking transaction patterns and fraud risks for protecting merchants. Still, there is room for making more refinements to e-wallets. Let us have a view of other streamlined solutions to modern digital wallets.
1. Smart Speaker for a Digital Wallet
In the past few years, we have found massive developments in smart speakers. Customers can interact with these systems by sending commands to get voice responses. In 2014, Amazon released its smart speaker for the first time.
However, after that, Apple and Google had taken part in the competition by launching their own smart speakers. Initially, these systems are useful only for cab reservations, weather updates, and other information. Besides, tech developers have also integrated home automation systems with smart speakers.
Interestingly, some users feel security risks while making payments using voice assistants. However, this voice assistant technology can turn out to be more secure in the future. Moreover, lots of big companies have started accepting payments, done using a smart speaker system. For instance, Domino’s is one of the brands, enabling its customers to pay for deals via Amazon Echo.
In the coming years, we are going to see several other vendors to team up with Amazon for convenient and smooth payment solutions to the customers.
2. Cryptocurrency Digital Wallet
We have found the developments of more than 40 million wallets designed for cryptocurrency transactions. We think that this number will increase in the near future. Moreover, there is a rapid rise in the number of users of these innovative cryptocurrency wallets.
Furthermore, SMBs and startups have also started adopting the trend of using cryptocurrency. Blockchain technology and cryptocurrencies have reduced the need for engaging third parties for digital transactions.
Besides, the low-cost, safer transactions are the most advantageous things for the user. Thus, lots of businesses have thought of leveraging these cryptocurrency wallets.
3. Online Wallets with Artificial Intelligence
For automating your everyday transactions, AI-based wallets are the best solutions for us. AI is one of the emerging technologies, and now, it plays a role in refining the e-Wallets.
Moreover, several eCommerce platforms have installed AI-based chatbots for helping the brands and companies to deal with customers’ issues.
In the world of mobile payments and digital wallets, AI chatbot has a special capability of automating transaction processes. The customers have also approved these AI-based e-Wallets for making payments.
Also, AI technologies manage voice instructions for dealing with routine activities (payment processing and number verification).
4. NFC Technology for Digital Wallets
Contactless wallets have turned out to be one of the latest trends in the payment industry. With Apple Pay and Google Pay, we have become familiar with contactless card transactions. However, this year, we will see NFC technology for designing the online wallets. Besides, this technology is much better than conventional PIN technology, as it instantly sends the encrypted information to POS devices.
Thus, instead of using a PIN-oriented platform, you can rely on the innovative Near Field Communication technology. Lots of countries have chosen NFC technology for diverse applications.
For instance, commuters in buses and tube stations in the UK use their NFC-based travel card for making payments. Furthermore, in China, this technology has turned out to be a very popular payment mode in public transports. Besides, Japan uses this technology to give identity card details.
5. International Remittance for Digital Transactions
It is a system of fund transfer from some foreign employees to their friends and families, residing in the home country. In lots of countries, international remittance covers the major part of GDP.
Moreover, in the middle-income and low-income countries, international remittance constitutes more than $500 billion in a year. Thus, the higher use of this international remittance indicates the adoption of online wallets by Smartphone users.
In addition, digital technologies and Smartphones have caused a fast transformation of the international remittance landscape. Thus, it is one of the important trends in the modern Fintech industry.
6. Loyalty programs
One of the best tricks for achieving success in your business is to start a loyalty program for customer retention. Consequently, this mobile-driven, digital loyalty program enables your customers to get rewards, discounts and offers by using mobile wallets.
Thus, at the time of making any deal, they can use these wallets and enjoy special offers. Lots of customers prefer e-Wallets, integrating loyalty programs, used at a number of merchants.
7. Mobile Wallets for Mobile Banking Transactions
Nowadays, lots of banks offer mobile banking opportunities to their customers, using mobile wallets. Most Smartphone users rely on these banking services for transferring funds to a different account. They can check out balances and the latest payment transactions.
Moreover, to get the convenience of cashless payment, these mobile-friendly online wallets have turned out to be the best options. Also, several financial institutes have invested an amount for developing customized wallet apps for safe mobile transfer.
Another interesting feature of this wallet app is that users can make a cheque deposit by snapping its photo. They can electronically send the photo to the chosen bank. Thus, those applications have enabled customers to use banking services from their mobiles.
Now, to create a digital wallet for your financial institute, you may hire developers from iOS and Android app development companies.
8. Hyperconnectivity and 5G- Effects on Digital Payments
The fastest connectivity by using the 5G network will transform different fields in 2020. Lots of organizations have started relying on revolutionary technologies for their benefit. The digital payment systems will also have an effect on making faster transactions from any place.
Moreover, IoT-based micropayments will also turn out to be future trends for transactions. There will be lots of payment channels, integrated with the connected gadgets. Surely, the 5G network will enable those devices to perform best. Thus, we can say that we are going to live in a hyper-connected world.
9. Sound-based digital payments
Sound waves play a role in designing digital wallets. The latest Smartphones and electronic devices can work with these sound waves. Without the use of the internet, users may make their transactions by relying on sound waves.
In addition, the best iOS and Android app developer has skills for integrating this feature with the app to ensure convenience to the users. Sound waves help in transferring the payment-related encrypted data.
Thus, sound waves, coming from a terminal, send data to the mobile. Then, the conversion of online data into an analog version makes the transaction successful. We can avoid using any hardware due to the use of these sound wave-based electronic wallets.
Now, you can look for the best developers for creating reliable and secure e-Wallets for your customers. These developers use the latest technologies for developing these wallets. There is no chance of hacking issues with these online wallets.
Rushabh Patel is a Founder and CEO of Siddhi InfoSoft, a leading Web & Mobile App Development Company focused on creating experiences that connect, perform & inspire. We believe in delivering perfect business solutions by adopting the latest and trending technologies for web and app development projects.