Digital payment appears omnipresent these days. With the rapid growth in online transactions in the past few years, digital payment platforms have evolved with the help of cutting-edge technology. Digitization in payments promotes a safe, convenient, and fast way for individuals around the world, and digital payment apps development has made digitization more prevalent than ever.

In such a scenario, isn’t it interesting to look at what 2020 has brought for us? Let’s go through some of the top digital payment trends set to rule the world in the coming years.

Before we begin with the trends, let us first have a look at the history of digital payments,

Online payments started in the 1990s. The Stanford Federal Credit Union was the first institution to offer online banking services to customers in 1994. However, early online payment solutions were not very user friendly, requiring specialised knowledge of data transfer protocol.

Millicent and Ecash were the early players in digital payments, which offered services that used micropayment systems and electronic alternatives to cash, like digital cash, e-money or tokens.

The founding of e-commerce pioneer Amazon in the year 1994 provided further impetus to these early digital payment efforts.

One of the earliest organizations to specialise in online payment was PayPal, which started as an online money transfer service in 1999. Its popularity took off when it became well-known with eBay users. All these factors laid the foundation of digital payments that we use today.

Top Digital Payment Trends to Watch in 2020

The digital payment solution drives the FinTech concept that arises by converging finance and technology. Here are seven trends to consider.

Advent of 5G and Hyperconnectivity

With the roll-out of 5G, lightning-fast connectivity will become a reality in the year 2020. Businesses will move forward to take advantage of this revolutionary technology. The digital payment platform will certainly have the impact of 5G to make transactions even faster from anywhere. It is possible to make the most of AI, cloud, and IoT with the use of 5G for managing multiple transactions at once.

We can’t rule out the possibility of IoT-based micropayments in the future. The connected devices will be transformed into payment channels and 5G will enable them to act instantly. In other words, we are going to have a hyper-connected world soon thanks to 5G.

Sound-based Payment Platform

This new approach is based on sound waves. Most of the smartphones are compatible with sound waves, and users can transact via sound waves without using the Internet. Mobile wallet app development firms can integrate this feature for improved convenience. As per this method, sound waves carry out the encrypted data related to payment. The sound waves come from a terminal that carries data to the user’s smartphone.

Now, the smartphone converts the digital data into an analogue signal that concludes the transaction. A simple and easy-to-use software solution can enable you to facilitate users with sound-based payment Platforms. There is no need for additional hardware in this technology.

Smart Speaker-based Payments

The trend of smart speakers is here for a will now and will stay for a very long time. Users can give commands and get vocal answers as responses. Be it booking a cab, getting climate and news updates, or getting information about restaurants, smart speakers always remain handy. Software giants such as Google, Apple, and Amazon, are big players in the smart speakers market. Today, smart players offer a convenient method to bring automation at home. In the coming time, it is possible to pay through smart speakers. Security concerns keep users away from using speakers for online transactions, but with more safety features in the coming future, we will see the gradual rise in this trend.

Cryptocurrency

Did you know that more than 40 million cryptocurrency wallets are created to date? Though the price of bitcoins is fluctuating rapidly, the number of cryptocurrency wallet users continues to increase. The exponential growth in cryptocurrency-based transactions also impacts digital wallets. Over 2.1 billion users of a digital wallet solution provide great scope to the integration of cryptocurrency-based features.

With the advent of 5G and expansion of the digital wallet market, we will have more cryptocurrency wallets with user-friendly and advanced features for cryptocurrency-related transactions. The mobile wallet application development companies can integrate such features and make the wallet ready for bitcoins, ethereum, etc.


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