Blog entry by Modesta Cramer
The payment technology landscape is transforming rapidly, influenced by changing customer habits and business needs. According to insights shared by Ingenico, a foremost global payment provider, there are various key trends that are revolutionizing how payments are made and conducted around the world.
One of the most obvious shifts has been the growing adoption of mobile wallets across many markets. Platforms like Apple Pay, Google Pay, and Samsung Pay are offering convenience to consumers for both online purchases in addition to in-store payments. A 2020 report from Juniper Research predicts that over one-third of global smartphone users will leverage a mobile wallet by 2024. The ubiquity of smartphones and the user-friendliness offered by mobile wallets is accelerating this trend.
Another noteworthy trend is the ongoing growth of e-commerce and resulting increase in demand for online payment capabilities. As the pandemic demanded digital shopping, many businesses had to quickly adapt and offer uninterrupted online checkout and payment collection. This was not restricted just to B2C companies but also reached to B2B firms who then had to implement electronic invoices and virtual payment options for their corporate clientele. Odilon Almeida, Senior Vice President at Mastercard, confirms that there was a massive shift towards electronic B2B payments in 2020 at an globally unprecedented scale.
Contactless payments are all set to become commonplace as well due to increased adoption of "Tap to Phone" tech. This allows contactless transactions directly through NFC-enabled smartphones, without having a separate payment terminal. Mastercard has been pioneering Tap to Phone technology globally in partnership with prominent device manufacturers and financial institutions. Such innovations are substantially lowering hardware costs associated with contactless payments.