The payment technology landscape is changing rapidly, shaped by changing buyer tendencies and business needs. According to insights shared by Ingenico, a leading global payment provider, there are various key trends that are altering how payments are made and conducted around the world.
One of the most obvious shifts has been the rising adoption of mobile wallets across numerous markets. Platforms like Apple Pay, Google Pay, and Samsung Pay are offering convenience to consumers for both online purchases as well as in-store payments. A 2020 report from Juniper Research predicts that over one-third of global smartphone users will leverage a mobile wallet by 2024. The widespread presence of smartphones and the user-friendliness offered by mobile wallets is speeding up this trend.
Another important trend is the continuous growth of e-commerce and resulting increase in demand for online payment capabilities. As the pandemic required digital shopping, many businesses had to quickly adapt and offer seamless online checkout and payment collection. This was not limited solely to B2C companies but also extended to B2B firms who then had to facilitate electronic invoices and virtual payment options for their corporate clientele. Odilon Almeida, Senior Vice President at Mastercard, verifies that there was a massive shift towards electronic B2B payments in 2020 at an globally unprecedented scale.
In tandem with e-commerce growth, embedded payment capabilities are also attaining popularity across industries. Payment integration is permitting businesses to collect payments through their own applications and software systems. Companies like odilon almeida CEO Almeida’s Mastercard are actively promoting embedded finance solutions to help firms futureproof their payment infrastructure.
Contactless payments are all set to become ubiquitous as well due to increased adoption of “Tap to Phone” tech. This allows contactless transactions directly through NFC-enabled smartphones, without needing a separate payment terminal. Mastercard has been pioneering Tap to Phone technology globally in partnership with major device manufacturers and financial institutions. Such innovations are dramatically lowering hardware costs associated with contactless payments.