Top Eight Digital Payment Trends for 2023

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The development of digital payment was a significant step toward a simple, practical, quick, and secure payment mechanism. But what lies around the corner of 2023?

How payments are made is changing rapidly due to tech advancements and rising demand for digital payment options.

Here are some digital payments trends for 2023 –

1. Biometric Authentication

In 2023, biometric authentication will be a leading trend in digital payment.  As per a recent report by Frost and Sullivan, “Frost Radar TM: Biometric Verification Solution 2023,” by 2030,

Frost Radar TM: Biometric Verification Solution 2023

Verification involving a person’s biological and structural features has become a reliable and secure alternative for all digital transactions. This reduces the risks of identity theft and fraud. Biometric authentication solutions have the following features-

  • Low false acceptance rates for collected identities
  • Multi-modality options for users to present facial, voice, and fingerprint
  • Open integration with third-party biometric scanner hardware systems
  • Open integration with existing identity databases
  • Offers directories to conduct identity matching
  • Validates if the biometric scans are true

This digital payment incorporates vital payment methods that offer accuracy, efficiency, and security under a single package. Biometric authentication is considered a highly secure method. This is because it consists of unique characteristics of individuals that will influence customer loyalty and trust.

2. User suitability for Gen Z

This tech-savvy generation of the digital world will have a higher dependency on cutting-edge, automated, quicker, and more efficient technologies and services. This will result in rapid growth in demand in 2023 for digital payment solutions.

3. EMV Technology

The EMV technology (Euro pay, MasterCard, Visa) today plays a dominant role in customers’ lives with a more automatic and secure mechanism of digital payments. EMV payment cards have become a standard for secure transactions.

As the chip in the card generates unique transaction data for every purchase, it makes it hard for hackers to clone the cards or steal any card information. EMV uses different codes for every transaction. This makes it more prevalent for customers to trust, enhancing security in the bank accounts by leaps and bounds.

A recent report by Business Research Insights, “EMV Payment Cards Forecast 2023 to 2030,”

“EMV Payment Cards Forecast 2023 to 2030,”

In 2023, EVM technology will offer more convenient and seamless money transfer methods.

4. Mobile-Point-Of-Sale (mPOS)

By freeing all merchants from their brick-and-mortar set-up and in-store payments, mPOS is turning into rapid adoption technology in 2023. Its tendency to liberate merchants from visiting numerous places to accept digital payments from their customers seamlessly is excellent.

The mPOS has brought a profound change in the payment process of a store by making it more streamlined and flexible by replacing the central checkout areas with sales staff equipped with mPOS devices. As per the Global Market Insights report “mPOS Terminals Market Size, 2023-32″,

mPOS Terminals Market Size, 2023-32″, 

5. Home Assistants Payments

These smart speaker payment solutions have become a trend in the industry as many firms invest in manufacturing home assistants. Earlier, this system supported phone devices, but intelligent speakers have become mainstream with the growth of home automation. Therefore, this smart speaker digital payment solution will run long in the industry.

6. Contactless Payments

In 2023, contactless payments will increase. This is because it lets smartphones make faster payments without any contact with a reader- which has become quicker and more convenient than inserting a card.

As per a report by Juniper Research, “Contactless Payments, “-

Contactless Payments, “

This digital payment is preferred as it is quicker and more secure than any PIN technology. Besides improved security, contactless payments can improve checkout speed as it takes less time than standard credit card payments. As contactless payment gains traction, non-traditional banks and third-party payment providers must enable frictionless checkout in 2023.

7. Mobile Wallets

Using these tools, one can send and receive money from other users, and save money inside a mobile wallet. Users can also purchase tickets, pay for services like utilities, collect incentives, and do much more with a mobile wallet.

Mobile wallets-

  • Offers a seamless and intuitive interface for users to conduct their transactions, enhancing user experience and satisfaction
  • Enable banks to set up recurring payments, ensuring a consistent revenue stream
  • Simplify compliance with PCI security regulations by tokenizing card data.
  • Offers users the ability to save and use card details for future transactions. This reduces friction and promotes repeated business.

Globally, this form of digital payment system is growing, and as a result, many big companies have started offering mobile wallets to allow transactions.

With a mobile wallet, firms can quickly evaluate their customers’ usage. In a mobile wallet, numerous participants and components work together to render easy, quick, and cashless payment services.

Also Read: Top 10 Digital Payment Apps in the USA

8. Buy Now, Pay Later (BPNL)

Due to its inexpensive and simple payback method, the use of BNPL has increased. Higher revenue and profits are two critical benefits of BNPL implementation for businesses.

As per another report by Juniper Research, “Digital Wallets,“

“Digital Wallets,“

This is due to the increased adoption of advanced services such as BNPL and microloans. The consumer, the merchant, and the lender can all benefit from BNPL. Without a doubt, BNPL will continue to bring in older clients who don’t have credit cards and younger clients who enjoy shopping. Thus, the BNPL method may eventually displace current credit assessment techniques.

Conclusion

As per a recent report by Statista, “Digital Payments – Worldwide,” by 2027, the total digital payment transaction value will grow to USD 14.78 trillion. It will record a CAGR of 11.80% for 2023-2027.

Digital payments are the future as they facilitate an easy, convenient, fast, and secure payment method. In 2023, payment methods will transition from physical cash to digital.

Many of the trends that have been identified will be crucial and will greatly influence the future of digital payment methods. These trends allow banks to innovate, grow, and build customer-centric strategies.

Nisha Sharma
Nisha Sharmahttps://talkfintech.com/
Nisha Sharma Tech Journalist at Talkfintech, Nisha Sharma, helps businesses with her content expertise in financial services to enable their business with good financial advice to enhance business decisions. With 3+ years of experience in content writing, content management, and financial technological investment, Nisha has put her hands on content strategy and social media marketing and worked for the News industry. Nisha focuses on working with OnDot on its publication to bridge leadership, business process, and technology acquisition. She combines her in-depth industry expertise into every article she writes to give her readers the most insightful content possible.

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