n recent environment, people are comfortable dealing with the online payments system. Both private and public sectors are now highly dependent on providing online payment platforms to customers. Contactless payments have become an inevitable part of our lives.
A decade before, there were only two online payment sources known, Credit and debit cards. The use of plastic cards has changed the game globally. After the Internet, the whole course of action has been changed everywhere. As a result ,now we have UPIs and wallet services available to pay and receive. It has helped banks to reduce their operational burden. From then onwards, the buying and selling pattern has also changed.
From businesses to individuals, everybody has started admiring the fintech and services offered by them. In this article, we have covered the emerging online payment topics that are in discussion among fintech, customers, and businesses.
Digital payment trends
Allot of positive changes have been observed in the ecosystem ever since online payments got pace. You will get a peek at some trends below:
- Mushrooming alternative financing
Also known as buy now pay later (BNPL). This is one of the most trending factors for a lot of customers and businesses are talking about and attaining benefits. After the rise in online payments with the feature of pay later, customers are now more relaxed and seem satisfied. Fintech in the market is providing some kind of leverage in terms of the credit limit in customers' online wallets .This is just like a credit card but in a virtual wallet form. Here, companies give a decent time frame to repay the same amounts. Customers can make purchases from the wallet limit and then pay later to the service provider in installments.
- Biometric authentication
Advanced technology has introduced a biometric authentication system which has encouraged so many fintech companies to adopt this technology. As you may already know, biometrics are body measurements and calculations to verify the retina and fingerprint scanning. This system tends to be more secure and has eased the concern about customer data safety.
- Pay using mobile phones and wallet
The use of smartphones and the Internet is rising. It has become easier to make personalized payments on e-commerce websites or vendors. There is a wide range of mobile wallet services available for business and personal purposes. No more hesitation in paying by card, check, or carrying cash every time.
- Real-time payments
I am sure most of us remember the old days when withdrawing and paying money to clients or relatives on time via a typical method. Standing in a queue to wait for your turn was a headache. The processing time for payment was 2-3 business days. Contactless payment has overcome this whole process and enhanced the culture of instant and real-time payments.
- Loyalty programs
Online digital payment allows the user to create a connection, both with the payment process and to retain them on the platform. The ease of doing business has allowed the merchants to expand their business and create an endless window of opportunities. A strong relationship is reflected between businesses and consumers due to online payment.
- Cashless economy
Digital transformation has taken over the world - so why not payments become digital ?Online payment has been a paradigm shift in the world of merchants. After the pandemic, everything did change in all aspects of our lives. Although an economy can never be completely cashless - digital payment transformation has become an aid to many.
- E-commerce growth
Thee-commerce industry has gained utmost popularity and tremendous growth from online payments. It is expected that it will keep on accelerating as per the technical advancement in fintech. If you are an online buyer or seller then you know how things are different. One-click payment option is available in society. Shopping and paying are fast, easy, and comfortable. The boost in thee-commerce industry is developing the interest of other businesses to evolve.
- White label solution
White label solutions are tailored to meet the specific needs of each client. It saves a business time and money by allowing them to focus on its core competencies. While offering feature-rich out-of-the-box white label solutions that require little to no setup or maintenance, facilitates partners with a completely responsive payment page. Along with providing a seamless and easy-to-use checkout process that will boost your business reputation.
The amount of payments processed under this service is 0.5 billion in 2020 and crosses 2 billion in the first four months of 2022. The aim is to strike 9million transactions in the year 2022.
Ottu - Strive to provide compatible solutions with primary banking systems.
Future of online payment
The future of online payments is safe and secure. It is the best substitute. Based on the current
market situation, all these parameters are the roots of the longevity of contact less payments.
● Less physical contact
● Increase in smartphones
● Digitization and automation
● Availability and its reach
● Online shopping and paying
Online payment is convenient and not at all time-consuming. With the help of innovation in technology, online payment systems will continue to gain more popularity and solidarity in the ecosystem. As you know, people are highly dependent on pay and shopping. It has been observed that the governments of different countries are now suggesting their citizens adopt online payment methods in their day-to-day buying routine. Global payment trends will continue to deliver smooth and successful transactions. You can consider ‘Ottu’ to become your integrated payment gateway to make the best business transactions.
Written by : Hrayr Bobyan,
Customer Engagement Manager