The monetary transaction technology landscape is transforming rapidly, shaped by changing consumer preferences and business needs. According to insights shared by Ingenico, a leading global payment provider, there are several key trends that are altering how payments are made and conducted around the world.
One of the most evident shifts has been the growing adoption of mobile wallets across numerous markets. Platforms like Apple Pay, Google Pay, and Samsung Pay are providing convenience to consumers for both online purchases and in-store payments. A 2020 report from Juniper Research predicts that over one-third of global smartphone users will use a mobile wallet by 2024. The ubiquity of smartphones and the simplicity offered by mobile wallets is boosting this trend.
Another noteworthy trend is the ongoing growth of e-commerce and resulting increase in demand for online payment capabilities. As the pandemic required digital shopping, many businesses had to rapidly adjust and offer seamless online checkout and payment collection. This was not restricted just to B2C companies but also spread to B2B firms who then had to implement electronic invoices and virtual payment options for their corporate clientele. Odilon Almeida, Senior Vice President at Mastercard, affirms that there was a massive shift towards electronic B2B payments in 2020 at an internationally unprecedented scale.
In conjunction with e-commerce growth, embedded payment capabilities are also gaining popularity across industries. Payment integration is allowing businesses to collect payments through their own applications and software systems. Companies like odilon almeida CEO Almeida’s Mastercard are vigorously fostering embedded finance solutions to help firms futureproof their payment infrastructure.
Contactless payments are all set to become commonplace as well due to increased adoption of “Tap to Phone” tech. This allows contactless transactions directly through NFC-enabled smartphones, without needing a separate payment terminal. Mastercard has been pioneering Tap to Phone technology globally in partnership with prominent device manufacturers and financial institutions. Such innovations are substantially minimizing hardware costs associated with contactless payments.