Payments Trends Boosting Business Operations

The new year is set to bring many changes for industries across the globe, and many of these changes come the rapid way technology keeps evolving. In the world of payments, there are several trends that will capitalize on the evolution of digitized finance and customer demands for electronics transactions.

Invisible Payments

Customer demands have been a leading factor in payment changes, with the customer experience becoming the most significant area of comparison between competitors. The new area of development is invisible payments. Past purchase experiences originated with in-person payments for goods purchased in a store, but then transitioned to online shopping portals where payment information was entered during virtual checkout.

Blending both experiences is the practice of embedded, invisible payments. Using a tool like eWallet, customers no longer have to input their financial information in order to checkout. Digitized stores of information keep the customer’s information on hand where the push of a button becomes a form of payment. Mobile apps payments will grow in popularity as this trend moves forward.

Smart Payments

Not only will payments become easier to store in embedded software across a variety of industries, but there will also be growth in the areas of smart payments. Smart devices are now being fitted with software that allows payments to be made in the most unlikely places. Currently in development is an intelligent car that stores payment information, making it easier for you to pay for gas, road tolls, and drive through orders through your vehicle. This shouldn’t be a surprise, as smart refrigerators can submit your grocery order when supplies are running low.

Digital Invoicing

In addition to the evolution of payments for consumers at a retail level, small and medium-sized businesses will see their invoicing services and processing transition to a digital platform. Things like account receivable, factoring services, and invoicing are areas to watch as the B2B organizations plan to join the digital billing revolution.

Companies want to simplify the billing process for consumers, as it has the potential to improve how quickly a company receives its payment. Paper billing systems are slower and more prone to having errors, so full payment systems that are digitized can improve payment and invoicing accuracy.

Spending Changes

The next few years will bring both Generation Z and the millennials into their prime spending years. It is currently estimated that around $350 billion of the funds spent in the U.S. belong to these two generations, but by 2020, the global purchase power for these consumers will total about 40% of funds spent.

In addition to changing marketing tactics, spending choices will have a lot to do with a company’s commitment to social and environmental issues. Payments and purchasing will need to be digitized for consumer interest, but also to promote more green practices. The demands of this generation have yet to be fully felt, but trends are showing that digital payments and increased dependence on credit are two of the things to expect from this group of consumers.

eCommerce Growth

Global eCommerce is on the rise, accounting for about one-sixth of retail sales around the globe but projecting to grow about 20% each year. If trends hold steady and consumers maintain their interest in online shopping, global eCommerce will outpace traditional retail stores at brick-and-mortar locations within fifteen years.

There has been an increased demand for U.S. goods abroad, but there are payment obstacles when it comes to international processing and fraud or theft prevention. It is also harder for small businesses to sell their goods overseas, which would need to be addressed before being able to tap into the markets that wait overseas. In large companies that deal with freight and shipping, bitcoin has become a payment option that helps avoid situations of fraud and non-payment.

As payment services become more digitized, the spotlight on fraud prevention and cyber theft will continue to shine brightly. The current financial industry has been managing these areas of risk fairly well, giving consumers and companies alike the hope that these payment trends will be safe and secure across industries and purchases.