What the future endures for Digital Payments.!

Gone are the days where the exchange of money would take place in physical form. The entire process of money exchange has been changed since the Stone Age.

Due to the Digital Revolution, the growth in the digitization of payments is massive. In today’s generation, we have money stored in digital wallets or in any electronic form.

While most of us are in the process of becoming tech-savvy, what does the future truly holds for digital payments?

This is the common topic that’s been trending. Let’s read more about it.

With ongoing trends and development in the technology industry, there is no doubt that digital payments are now getting more secure and reliable.

Biometric Authentication

In earlier times, physical signatures were required to complete a transaction whereases now almost all devices are enabled with a finger-print recognition to complete a transaction. This ensures that the payments are carried out securely. Some of the biometric authentications include a fingerprint scanner, facial recognition, iris recognition, and heartbeat mapping. Moreover, the chances of hacking and online fraud are prevented.

Cryptocurrency E-wallets

“Cryptocurrency is the new future of Digital Payments “

Cryptocurrency is the virtual currency that was established in 2009 by a person named “Satoshi Nakamoto”. He introduced the world’s largest cryptocurrency i.e “Bitcoin”. Despite the fact that cryptocurrencies are volatile in nature, and the prices may drop down or increase anytime, the number of growing cryptocurrencies is huge. All the Bitcoins are stored securely in the Bitcoin Wallet. Cryptocurrencies and their E-wallets use Blockchain Technology that is decentralized and doesn’t involve a third-party system.

Due to this reason, hackers find it difficult to tamper with their data. These e-wallets allow you to perform all your cryptocurrency transactions securely. To buy or sell a cryptocurrency one needs to download a cryptocurrency e-wallet on their smartphones, and need to make they are connected to the internet.

Some of the popular cryptocurrency e-wallets are Exodus, Electrum, Mycelium, Ledger Nano-X, and Ledger Nano-S.

Contactless Payments

During the times of the COVID-19 pandemic, contactless payments have worked like a magic wand for us. We have to maintain social distance and perform all our activities. With contactless payments and cashless transactions, the process is now much simpler keeping all the norms in mind. These payments are initiated when the user waves their smartphones over the reader. This method is much faster, simpler, and convenient compared to swiping or inserting atm cards. All the encrypted data is transferred instantaneously on the point-of-sale device.

These payments are also called “Near Field Communication” (NFC) payments. Cities like Japan. London, China, and the UK have already accepted these payment methods in public transports and gas stations.

From Card to Codes Transactions

Bank accounts in earlier times were simply recognized by the unique number of digits on the card. Technology like Europay, Mastercard, and Visa have adopted a more secure way of payment that have introduced automated payments.

EVM Technology uses a different code every time a transaction is performed. This temporary code present on the card has improved the security systems of bank accounts.

AI-Powered Security

Security of payments is the most important aspect that cannot be comprised with. When it comes to security people usually prefer payments that promise high security. Artificial Intelligence and Machine Learning are used widely in applications for securing transactions. And while achieving this, Machine Learning is the first step to be taken. These can take a limited amount of transactions and send you text alerts in real-time.

For instance: When a transaction is performed, with machine learning technology text alerts are sent to the mobile phones enquiring if it was you or by fraud, in real-time, no humans will send such alerts.

As the world is leaning more towards automation, new developments will arise that will let the users perform all their transactions in a secure way.

Key Takeaways

Digital Technology has evolved rapidly and so are the banking systems that are processing with it.

The development in digital payments will not only favor the bank industry but also the users.

In the coming years, more than 50% of people will already have installed all the modes of digital payments on their smartphones.

But only time will decide how will they digital payments change the future of banking technology.