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Payment Technology: What We Can Expect To See In The Next Few Years

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Payment technology has been advancing at breakneck speeds since 2020. Undoubtedly, COVID-19 was one of the key driving factors pushing individuals to look for new payment options because cash represented a considerable health risk. However, fast forward to 2022, and the world has almost shunned cash, preferring to use digital and contactless payment systems. 

Payment technology does not appear to be slowing down any time soon. In fact, this industry is set to see even more changes in the future. In this article, we will discuss three developments in the payment industry that we’re likely to see over the next few years. 

Adoption Of Contactless Payments 

Contactless payments aren't new - countries like the United Kingdom and Australia have been using them for more than a decade. However, with COVID-19, the technology began to spread to a large number of countries across the world, as people looked for a way to pay for goods without exchanging cash. 

People in countries like Germany, who used to pay with using a payment card reader or with cash, now rely entirely on contactless payment systems. This demonstrates how quickly payment technology has advanced in the last few years. 

Along with possible benefits, there are also potential risks. Many people find contactless systems handy to use, but some are concerned about the security dangers that contactless payment may pose. As a result, companies are developing new technologies to address these challenges and create the most secure payment systems possible. With these developments, we can expect to see more trust in contactless payments, boosting their adoption even further. 

Biometric Authentication 

Online transactions come with risk of fraud, because hackers will always look for opportunities to intercept your payment information. This makes many consumers hesitant to use it as a payment option. This has inspired many companies to look for payment methods that minimise the risk of fraud. 

The payment industry is currently anticipating implementing biometric authentication technology that will allow businesses to protect their client’s personal data while avoiding theft and false transactions. This technology has already been integrated into mobile phones, allowing users to save time by not having to enter their login credentials. Users no longer need to enter passwords or answer any secret questions to verify their identity. Instead, biometric technology authenticates the user's identity in seconds, allowing them to use the app and make transactions without a password or PIN. 

Biometric authentication is based on the Fast Identity Online (FIDO) protocol, which uses a powerful authentication mechanism. This technology has shown users that their data is safe and secure and that they can make payments on any website or application. With biometric technology being used by Google Pay, Apple Pay, and other widely used payment apps, it’s likely that future payment systems will no longer rely on passwords and PINs. 

QR Codes 

QR codes aren't new. We’ve already seen how useful they can be in a variety of settings. For example, there are countless shops throughout the world that, in addition to accepting cash, credit cards, and digital wallets, also allow consumers to pay by scanning a QR code. But what exactly is a QR code? A QR (quick response) code is a matrix barcode that can be decrypted after scanning with a mobile device. Users can make the payment and it will be processed after the QR scanning is successfully completed. 

Here are just a few of the benefits of QR codes: 

• They have the capacity to store a large amount of data 
• QR codes can be scanned through paper or a screen 
• The QR can easily be scanned even if part of the bar is spoiled 
• This method is highly secure, because the information is encrypted 

Unlike linear barcodes, QR codes may be read on paper or on a screen, which is why you will find QR codes in stores all over the world. One of the essential tools for scanning QR codes is a barcode reader. You won't have to worry about this if you have an iPhone because these devices come with a built-in bar code reader. However, if you have an Android device, you may need to install a barcode-reading app. 

Around 5.3 billion QR codes will be used just to provide coupons in 2022. Another report by Bitly suggests that since COVID-19, the use of QR codes has increased by 750%. This demonstrates the massive growth of QR codes their potential for the payment sector in the future. 

Final Thoughts On The Future Of Payments

Payment technology is rapidly evolving, driven in no small part by the COVID-19 pandemic. However, these changes have brought solutions to a range of consumer problems, that extend far beyond the scope of the pandemic. This evolution is set to continue into the future, with many exciting developments ahead for the payments sector.