Wireless technologies have been integral in the advancement of mobile money payment solutions. The barrier to carry out business between two or more distant regions is now made possible because of the contactless digital payment solutions. As a result, companies such as PayPal have made it big in the FinTech industry in a short while.
In addition, there are certain online wallets that are influencing the way peer-to-peer payments are made. All-in-all, the cashless payment solutions are just the tip of the iceberg. There’s more to come in the future of digital payments.
What Does the Future Hold?
Let’s first understand the need for digital cashless solutions. In previous times, there were ‘brick and mortar’ businesses. As a result, cash was the most prominent mode of transaction. There was no need for any bank transfer. However, in recent times, there has been an increased consciousness about the use of cash, owing to the excessive paper used.
Besides this, use of counterfeit money and fraudulent activities make a business prone to loss. As a result, digital payments have emerged as a feasible solution for businesses and individuals.
Below are some of the effective contactless payment solutions:
- UPI
- Micro ATMs
- Mobile Wallets
- Internet Banking
- Mobile Banking
Now, these are the current trends in the contactless mobility solutions vicinity. In the future, the Internet of Things (IoT) technology will hold more prominence in the future, driving contactless transactions even more .
How Will be the Future of Contactless Payment Solutions?
The current transaction trends are evolving. As a result, the future of contactless payment solutions will be an inspiration and yet some steps beyond what they are today. Let’s us understand how they could evolve:
Convenience is Critical
Convenience is the number one criteria when it comes to using contactless payments. Take an example of any payment method, they are more convenient to use than the other ones.
For instance, if you consider debit cards, these were used for going cashless. Individuals do not need to withdraw cash, every time they go out. As a result, a debit card was seen as a convenience, until the credit card came into the picture, wherein they didn’t need to reload their bank account.
Clearly, the future of contactless payments will bring in more convenience to businessmen and individuals.
What can be Done?
- Conduct a survey of end users. For example, if you are targeting business to business transactions, ask these audiences what they don’t like about PayPal. Then move to the next level and develop an app better than PayPal.
- Study the features of the online payment apps. Take a close look at their business models. You will find some missing elements. Pick on those cues and develop your digital payment app.
- Think of convenience and take it to the next level. Make transactions as easy as possible.
Need for Speed:
Technology is a broad term. There are some thick as well as thin aspects when it comes to contactless payments. However, if there’s one thing that’s common behind the introduction of every payment method, it is the speed.
The word is ‘instant’. Modern individuals require everything instantly. As a result, they do not want to wait for banks or the third party gateways to process their payments. This is because these banking systems prove to be extremely time-consuming.
Besides this, numerous errors and payment failure occur when individuals carry out such transactions. In such cases, individuals lose trust in these payment methods and look for others.
Clearly, the future of the contactless payments will have speed as the essence for the transactions to be diverted to either side quickly.
What can be Done?
- Currently, NFS and QR code technology is highly prevalent when it comes to building an online payment application. However, these have dependencies of receiving the code and scanning it. So, payment over the Internet is a feasible option.
- Bet on the futuristic technology. For instance, build an app compatible with running on 5G. This will create a distinct mindset about your mobile application. Individuals will perceive it as a futuristic payment app.
- Ensure that you choose your third-party APIs carefully. Usually, these are responsible for processing payments. Make sure that you choose the ones that have been trusted by mane.
Pay as you Go
There has been a radical change in the behaviour of consumers. Numerous cashless payment cases that include gesture-based and touch-based solutions are on the horizon.
Such payments are made possible on the back of the smart chips and QR codes. Individuals are able to make payments using low RF signals as well. Besides this, in today’s time, even the Internet is not used for making these payments. Individuals can carry out their payments in offline mode.
As a result, it is crucial for you to build a contactless payment system that encourages on the go payment.
What can be Done?
- Emphasize on interoperability and accessibility.
- Invest in the payment modules that encourage and offer 24*7 connected ecosystems.
- Do away with the dependencies regarding QR, RF, NFC, etc.
The Final Words
Developing a contactless payment application is a bit complicated, especially when the FinTech market is crowded and competitive. The best approach to building an online payment app is to look at the future. Guess the technologies that are to come in the future, and make your contactless payment mobile application compatible with that.
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This article was written for Business 2 Community by Nikunj Gundaniya.
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