With the developments in security technology and changing customer behavior, the payment industry is rapidly developing. With the increasing population of the millennium and X generation, as well as the popularity of mobile payments and mobile wallets, biometric verification has also increased. The seven trends you need to follow about the future of payment are as followed:
- It is expected that mobile payments will surpass credit card payments at stores. Today it is expected to reach $503 billion by 2020, which is 75 billion dollars.
- Mobile Payments (16.6 percent), Google Wallet (16.0 percent), Android Pay (11.3 percent) and Samsung Pay (8.2 percent) are the most commonly used mobile payment applications in small and medium sized stores.
- The three most common payment methods used by online shoppers are credit card (42 percent), electronic payment (39 percent), bank (debit) card (28 percent)
- In the US, the number of mobile POS devices will reach 3.27 million units in 2014 and 27.7 million units in 2021.
- Over the next five years, block-chain technology is expected to reduce accounting reconciliation costs by 70 percent. Compliance costs are also expected to decline by 30 to 50 percent.
- Enhanced customer experience will be the future of payments. Sixty percent of the millennium generation and X generation are not seeing any problems sharing credit card information with third party companies.
- Biometric verification methods such as fingerprinting and face detection will be used in 2021 for more than 18 billion payments.