Digital Payments Landscape: The Current Snapshot
Rapid changes in digital technology have immensely transformed the payments industry. With a vast business model to support an existing, highly competitive market, it is imperative to look for innovation, convenience, and faster payment solutions. A massive increase in smartphone penetration and mobile wallets has accelerated the adoption of digital payment services. Online retailing platforms are rapidly adopting mobile payment applications, such as PayPal, Apple Pay, and Samsung Pay, owing to changing lifestyles and daily commerce.
Choices to consider for a new payment ecosystem
Today, the digital payment landscape is strewn with opportunities, and the market players in this ecosystem have a set of real choices at their disposal. There is a marked shift from the traditional bank model to payment solutions by non-banking technological companies.
Underneath a smartphone user’s single-tap payment applies a complex payment value chain. It consists of the customer, the merchant, the issuer, the acquirer, and the network provider, that build the payment ecosystem in partnerships. However, a successful payment platform with shared utilities is built on thoughtful planning.
Ways to succeed in the Digital Payment Market
Technology continues to be the key driving factor, and its amalgamation with finance has expanded the realm of traditional payment services.
1.Contactless Payment to Drive the Market Growth
Contactless payment is fast evolving as an alternative payment channel. It uses radio-frequency identification (RFID) or near field communication (NFC) to complete secure payments. Contactless payments are faster, easy to use, and offer a seamless and integrated payment experience between contactless card and contactless-enabled PoS terminal. New, improved device security features like biometric and cryptographic algorithms improve customer journeys and boost security. It also takes just one-tenth of the time of a traditional electronic transaction.
2. Innovation is the Key
The Digital Payments Market has a moderate concentration of prevailing players. Several companies exist in the market, but firms must keep abreast of the latest technical innovations in their products. Innovation is a must to gain a sustainable competitive edge over their rivals. It also helps to provide product differentiation in a bustling market where the rules are quickly rewritten as new technologies and business models develop.
3. New Technology Adoption for Enhanced Efficiency
The use of modern technologies improves existing manual processes and significantly reduces costs. Artificial Intelligence (AI) and Open banking are two promising technological developments in the payments realm. AI can be used extensively for process automation in customer service, optimized payment flows, real-time payments, and performing fraud checks. The gradual adoption of Open Banking APIs will allow data exchange in the financial system and promote market innovation.
4. Development of Robust Enterprise Payment Solutions
The right Enterprise Payment Solutions can simplify even complex payment processing to streamline business operations. Such solutions combine a comprehensive payment platform for accepting, processing, managing risk, tracking, and reporting all types of payments. This feature can modernize your existing payment channels and also cater to dynamic customer needs.
5. Building secure and fraud-proof payment systems
Digital payment solutions suffer from the biggest roadblock in the form of cyber-attacks like cyber thefts and frauds. Banks and other payment providers need to make a conscious effort to build security into their products and services. This can be done by embedding cybersecurity at an early stage and as an integrated layered defense. Employing security analytics solutions to store and analyze real-time security data can prove to be beneficial.
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