Technology has been a key player in the gamut of the payment world for the last few decades. The evolutionary mechanism has duly reshaped the payment industry from time- to- time. Following the first Industrial Revolution that brought about a major transformation in economies worldwide, the payment scenario equally underwent the transition cycle. It’s for the last fifty years or so that the need for a more convenient, secure, regulated mode of monetary transactions catapulted a significant shift in the manner we pay for goods & services now.
From cash payment to check payment, then to plastic cards like debit/credit card payments, the payment industry has seen it all. A solo swipe method did the trick! It’s indeed interesting to find out how technology has impacted payments and finally arrived at the present stage of digital payments. Let’s discuss it!
- EMV Technology
It is the power of Smart Card technology that has challenged a rather precarious counterfeit fraud leading to an alarming situation in the payment domain globally. EMV – Europay, MasterCard, Visa – the names of original creators of the very technology stand for the abbreviation, has come as a big solace to us.
Also known as the Chip Card or IC Card, its data are stored on the IC chips (Integrated Circuits) .The transaction is done by physically inserting a card onto a reader or by just tapping over a distance(contactless) using a Near-FieldCommunication Technology.It is the authentication method that categorizes cards into a Chip &Pin card or Chip &Signature Card.
- Mobile Point of Sale (MPOS)
Mobile POSis the technology that facilitates a flexible payment process in areas like retail, hotel, parking lots, etc.For instance, in a departmental store, customers don’t need to stand in a queue at billing counters to pay bills.Mobile POS enables sales-staff to receive payment from customers just from any location they are present inside the store. Similarly, a hotel staff can check you in or check you out ata lobby itself (or any convenient point).No need to do the formality in the usual front desk corner of hotel.MPOSis widely being used across industries not only in hotel or retail but SMBs and even the bigger enterprises.
- Mobile Wallets
The arrival of digital technology has smoothened the process of payment methods viz., Mobile Wallet is the e-version of a Real Wallet in physical form. Under the technology, consumers use mobile phones to pay for goods & services instead of hard cash, swiping/inserting credit cards or debit cards. Take for instance, Google Pay, Apple Pay, where the entire payment card information is stored on a mobile phone.
- Peer-To-Peer Payments
P2P Money transfer is the electronic transfer of money done by one person to another through an intermediary in the form of a Peer-to-Peer payment application. Paypal, ApplePAyCash, Venmo, Zelle are a few examples of the P2P applications.It is the process of transferring funds between two people through their respective personal bank accounts or credit cards using an online medium or app.In short, it is an effortless money transfer process with a mere few taps! So, next time when you go outing with family or friends, don’t carry cash but a smart digital payment app on your mobile.
- AI based Voice Payments
Has it not been a common scenario by now- “Alexa, pay my water bill,”a scene you can connect to so often! After mobile shopping, you can now resort to your Android apps that can do you favor towards paying bills through an integrated system of Voice Assistant. This is termed as an AI technology backed Smart Speaker! You speak, and the AI obeys to your command! Many renowned names rule the picture – Amazon, Apple, and Google. Not only at the present but Smart Speaker has a bright future with a Business Insider report suggesting its usage to grow up to 77.9 million users by 2022!
- Biometric Authentication
You can consider Biometric Authentication as a significant addition to various digital modes that the payment industry has witnessed so far. It is a verification system incorporating measurable physical attributes like your handprints, fingerprints, your irises, and even voice. These attributes are unique from person to person. Biometric technology does scanning and then verifying the given attributes to authenticate a user to a particular service. It gives ample scope of combating security threats in the entire system!
A disruptive technology like the Internet- of- Things (IoT) has introduced Internet-of-Payment (IOP) that enables financial transactions over IoT devices like wearable gadgets, appliances, and automobiles. MASTERCARD, VISA are the pioneers in this segment that are helping financial institutions with the seamless method of card payments over connected devices.
How would you rate the technologies that let you pay with just a wave of the hand (FitBit), or some In-Car APPfor seamless payments(HONDA or GM cars), shopping groceries using your Samsung Refrigerators? Thus, the Payment Industry has reached to a point where digital payments are the core of businesses across industries.
Would you like to develop some modern technologies to accelerate your business payment systems, reach out to us for a free demo today!