There is no denying the fact that the banking industry has undergone a significant evolution over the last decade. Thanks to shifting consumer expectations and technological advancements, the focus today is more on leveraging the best payment processor for exploring the best of banking and digital payments.
Past & Present Of Banking and Digital Payments
In 2022, the global core banking software market was estimated to be worth approximately US$12.51 billion. Furthermore, the total transaction value in the segment of digital payments market is expected to cross US$9.46 trillion in 2023 and US$12.78 trillion by 2027.
Since COVID-19, there has been a massive spur in terms of financial inclusion. This unprecedented growth helped in building resilience at multiple touchpoints, narrowing the account ownership gaps, and creating new (or previously hidden/unexplored) economic and growth opportunities. For instance, worldwide account ownership has now reached 71 percent of people living in developing countries and 76 percent of the global population.
All in all, the digital revolution that followed the pandemic significantly catalyzed humongous and sustainable improvements in the use and access of financial services and solutions across the globe through innovative payment methods introduced by some of the world’s best payment processors. This has, in turn, helped in creating and maintaining a resilient and inclusive economy acting as a robust gateway for billions of people across the world.
Today, making digital payments are done in a breeze. The ever-evolving appetite of comfort, convenience, speed, and security has made customers happy while revolutionizing the entire system of banking and digital payments.
Future Of Banking and Digital Payments In 2024 And Beyond
In near future, the following trends in the world of banking and digital payments are likely to further bolster and scale global economies, almost at will.
#1. Mobile Payments
Mobile-based payments are likely to experience significant and sustainable growth in 2024 and beyond, much like in 2023. According to industry estimates, the mobile payments market is expected to grow more than US$607.9 billion by 2030 compared to US$53.5 billion in 2022.
Ideal for small and large businesses, mobile payments play a crucial role in eliminating the challenges while finalizing customer purchases. Characterized by seamless and quick payment processing, mobile payments (mobile wallet, peer to peer, mobile eCommerce, mobile payments at point of sale, and SMS payments) dramatically improve the speed of transactions without compromising on the safety aspect.
#2. Buy Now Pay Later
In recent months, the concept of Buy Now Pay Later (BNPL) has many advantages for both businesses and consumers. Firstly, it helps drawing in new customers, retaining existing customers, minimizing cart abandonment, increasing sales, improving brand loyalty, and managing cash flows & inventory. The concept of BNPL also supports Customer Lifetime Value (CLV) and takes good care of capital problems.
No wonder, the count of BNPL loans from the top 5 primary lenders exponentially grew more than a whopping 970 percent from 2019 to 2021.
According to an April 2023 report from Experian, the average purchase amount of a buy now pay later loan is US$132.
#3. Cryptocurrency Payments
For many, Cryptocurrency payments are the future of our world. Drawing the attention and appreciation of tech enthusiasts and investors alike, Cryptocurrency payments leverage a decentralized technology (Blockchain) to verify and record transactions in digital ledgers.
Characterized by unmatched security and decentralization, Cryptocurrency payments (usually executed by crypto types such as Bitcoin, Ripple, and Ethereum) redefine diversification, inflation protection, transparency, security, transaction speed, accessibility, and privacy like never before.
#4. Biometric Payments
Undoubtedly, Biometric payments are becoming the new way to pay in today’s new normal. According to a survey conducted by VISA in 2022, 86 percent of consumers expressed enthusiasm to use biometric-based payments.
This innovative method for digital transactions removes the requirement to remember complicated usernames and passwords and allows consumers to pay for their purchases through the authentication of their physical characteristics, such as iris scans, facial images, or fingerprints.
#5. Central Bank Digital Currencies (CBDC)
Central bank digital currencies (CBDC) are a regulated form of payments unlike cryptocurrencies. Today, governments across the globe are focusing on innovative ways to make payments digital and frictionless.
#6. Social commerce payments
According to industry estimates, revenue generated from social commerce is expected to cross US$6 trillion by 2030. From Instagram to TikTok to Facebook, more and more consumers are counting on the benefits of social commerce payments by shopping within the platforms themselves.
#7. Open Banking
Open Banking facilitates simplified, fast, and secured payments to open the doors to increased convenience, transparency, and security. The concept of open banking allows consumers to swiftly switch from conventional payment methods to digital payment methods, resulting in faster, secured, frictionless, and better customer experiences.
Conclusion
The future of banking and digital payments is brighter than ever, in 2024 and beyond.
Consumers and businesses can count on best payment processors such as WebPays to strive for a premium, unmatched experience at every stage of the buyer journey. WebPays, as the industry’s best payment processor, provides transparent and affordable payment processing solutions to suit every budget and requirement.
Need help with payment processing solutions? Contact WebPays, the world’s most trusted and best credit card merchant account to help you at every walk of the payment journey.
