ince the advent of pandemic, digitlisation has become a part of our everyday life. Engulfing most of our business functions - digitlisation of payments have been a monumental shift in the way a person conduct their buisnesses. All the online receipt and transactions are done through digital payments. As innovation takes part in upgrading the technical systems, changes in the payment industry has seen a magnificent turn with new regulations to shape the digital tools.
What are digital payments?
A digital payment is the transfer of funds or digital currency directly from the back account to the receiver using digital payment softwares, like mobile wallets or mobile payment apps such as Ottu. The digital payments are also referred to as electronic payments.
By facilitating digital transactions between two parties, it facilitates financial transactions.
In 2022, the demand for contact-less, hassle-free, digital and speedy payments have been made possible through Ottu. It has been offering merchants new ways to make payments and thereby effectively easing the way they do business. As e-commerce grows so does the services created by Ottu. This allows merchants to keep track of their online payment trends while accommodating customers' expectations of a variety of payment options.
For the first time in many years, the payment system has been devised to service the customers as online shopping increases. Now credit and debit cards are not the only means of payment, the options for payment have grown. With flexible payment methods and seamless transactions - Ottu has come a long way in answering the digital payment services for its consumers.
The trends in online payments
As time progresses so does the different trends that have taken over the normal way of conducting a business. Machine learning and AI makes it possible for technologies to make these digital payment services possible. As consumers conduct their business and make purchases with their mobile wallets or applications, machine learning understands and is able to study the experiences alongwith improving them over time. The few trends that have been made famous due their positive impact on the society at large. Some of the most effective trends that we see are -
- Instant Payment Acceleration - Instant payments already have a transformational impact on the payments landscape overall in terms of speed and connectivity amongst the merchants. These past years have witnessed the spread and growth of instant payments quite a lot. The pandemic was a catalyst for a number of instant payment schemes. These online payments offer a much more secure alternative which is accessible and transparent.
- Digital wallets - We are heading towards a new era of cashless world, digital wallets are a technology upgradation in the banking system. Digital wallets are transactional mediums that links to the debit card or the credit card. They are transforming the future, by storing multiple information like tickets, invoice, identity cards and even health records. The wallets are not just storing the money but they have also disrupted the concept of money.
- Cryptocurrencies Wallets - With blockchain, cryptocurrencies have given birth to a new age of currencies. It is transforming the concept of value being stored in a bank account. It is revolutionary and as we take note of this trend. As of July 2022, there are 81 million blockchain wallet users globally and that is expected to increase as more business and financial institutions accept cryptocurrencies.
- Mushrooming Buy Now, Pay Later - For the younger generation, this concept has been a hit. The BNPL industry is expected to reach $680 billion in transaction volume in 2025, according to Insider Intelligence. BNPL allows consumers to make payments over a few weeks or months, often interest-free, at the time of sale. The consumer's credit score is not affected by BNPL loans, also called point-of-sale installment loans, unless the loan is not repaid on time or if it is not paid off in full.
- Biometric authentication - The use of biometrics as an authentication solution is a great way to prevent cyber security issues. A user can authenticate a payment using their fingerprint, face, iris, or voice. Since e-commerce involves money, fraudsters and scammers find it an attractive target. Therefore, sellers must find a balance between security and convenience. In this way, they are able to provide a safe and easy experience for their customers.
- Omnichannel payments - Integration the different channels of payment into one platform. It merges all of a business’s payment processes all in one place, provdiding a single view of the transactions on the dashboard. In-store, social media, mobile, email, web, phone, and live chat are just some of the ways you can offer shoppers an omnichannel payment experience. In addition to real-time data synchronization, omnichannel platforms offer flexibility in banking. It is important for consumers to be able to start their on-boarding process with one channel and finish it with another - without being required to provide the same information repeatedly.
Ottu is a prime example of fintech innovation, it integrates with e-commerce websites and allow the customers to pay directly from their account and merchants to conduct their transactions. The data already is saved on the platform and with a couple of clicks the digital payment gets completed. Ottu’s digital payment processing service has integrated third party channels to provide a seamless checkout experience.
The new payment methods would significantly improve accuracy, efficiency, and accuracy compared to the old ones. Also, it provides merchants with the opportunity to improve in-store payment experiences for consumers by offering a quick, secure, and convenient method of payment.
Written by : Fouzi Mohamad,