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18th June 2019 | Anna Jasiak | Payment Card Implementation Specialist, Dominika Bąbelewska | Junior Specialist for Settlements

Payments – the present and the future

Modern payment methods are multiplying quickly. It’s good to be up to date to choose the fastest and the cheapest way to pay for goods and services. Every consumer should be informed about the choice to make a conscious decision.

How to pay in XXI century?

E-payments

It’s hard to speculate how the payment market will look in the next few years because it develops very quickly. Day by day people create new technology solutions and invite more and more ways to pay. We can see many newly formed Fin-Tech companies find the cheapest and the easiest way for moving money around. The world is becoming cashless and soon there will be no need to go to the bank branch for anything. 

Nowadays, with the payment tools selection growing, consumers can choose from several new online payment services. 

PayPal©

An online payment service that allows individuals and businesses to transfer funds electronically. The idea behind PayPal© is simple: Use encryption software to allow people to make financial transfers between computers. This simple idea has turned into one of the world's primary methods of online payment.1

Bill Me Later©

"Bill me later©" is a way to use PayPal© and pay without using a credit card. Users provide their birthday, the last four digits of their Social Security number and agree to accept the contract terms. Once this process is concluded, the purchase is made. The bill is sent later. Users are subject to a credit check before being approved.2

Social media payments

The last three to four years has seen social media giants actively tap into the growing trend of social media payments. Aside from using these platforms to directly interact and share content with friends, millions of people now utilize their social platforms of choice to pay for goods and services or transfer money to one another.3

Currencycloud©

A global payments platform built on smart technology that takes the complexity out of moving money. Developers use their API building blocks to build customized payment solutions.4

Pay-by-link

A useful tool for all types of businesses allowing to accept online card payments without any need for IT development or even a website. Payment platforms allows companies to create a payment link with predefined details and simply post it to the customers.5

Digital wallet/e-wallet

A system that securely stores users' payment information and passwords for numerous payment methods and websites. By using a digital wallet, users can complete purchases easily and quickly with near-field communications technology. They can also create stronger passwords without worrying about whether they will be able to remember them later. Digital wallets can be used in conjunction with mobile payment systems, which allow customers to pay for purchases with their smart phones. A digital wallet can also be used to store loyalty card information and digital coupons.6

Mobile payments like Google Pay© or Apple Pay©

Regulated transactions that take place digitally through your mobile device.

Mobile payments have revolutionized the way businesses are thinking about payments processing. In stores, mobile payments are enabled by a technology called NFC, which stands for “near field communication.” They are secure, fast, and convenient. This payment technology is growing fast. Brands like Starbucks© and CVS© have created apps that allow you to save payment information and favourite products, so you can order your favourite coffee drink with the tap of a button.7

Electronic Bill Payment

Method of sending money to a seller's or creditor's bank account directly from an existing bank account. This method is also used to pay credit card or other bills, and not necessarily to merchants.8

More consumers become familiar with these ways to pay, the more widely used they will become.

Also, there are new solutions for cards purchasing. 

All the leading players in the payments’ world are working hard to make transactions in traditional and online stores less time-consuming for customers, than at present.

It is primarily the constant development of payment ecosystems, which many companies work on parallel. Banks and FinTech’s will drive the future of payment transformation. Banks have brand recognition, industry knowledge and a large customer base. FinTech’s have developed breakthrough technologies and sometimes show surprising market flexibility.9

Currently, we are not limited to just the phone for making payments - through Apple Pay© and Google Pay© payments, but also a keyring, sticker, bracelet or another gadget. Such a gadget has a built-in microprocessor, thanks to which we can make payments as if we were paying with a card with the advantage that we do not have to have a wallet with us.

Perhaps in the near future we will not need a payment card, smartphone or watch to make a payment. Biometric payments enable us to pay with our finger, eye, face or voice. Biometric data is already used as one of the methods in the authentication processes. Around biometrics there are more and more futuristic payment innovations. There are already in place the solutions in which blood vessel biometry is used to make payments. Such a solution does not require a physical carrier - it is enough to register biometric data and link them to the payment card number. The transaction takes place by placing your finger on the reader of the blood vessels. To accept and authorize such payment on the part of the seller you only need a tablet with the appropriate software. Another solution based on the biometrics of the so-called selfie pay is about confirming the operation by recognizing the shape of the user's face. 

Another solution is also implemented by Google©, which has launched public tests of its Hands-Free payment project, which allows you to make mobile payments without need to touch the phone. Confirmation of the transaction is done by voice - just say "I pay with Google©".

Although the above solutions are or will be tested shortly, the route to mass validation is still long. There is the question of privacy and user acceptance for the transmission of user biometric data.

Will we be willing to register our hand or fingerprint scans for convenience of payment?

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