As we move deeper into all things digital, we see payment trends changing at a rapid rate.
Between major data breaches - think Facebook and the famed Cambridge Analytica saga of 2018 and the more recent 2019 attack on Australia’s Victorian Government – and more businesses moving online, the need to stay up-to-date is crucial.
Online data is now at the epicentre of our business operations. Payment services are utilising this data at a greater rate, producing a range of products to streamline our path to purchase.
From increased security methods through to big technology breakthroughs, discover the digital payment trends set to define 2019 and read up on how you can stay at the forefront of online business.
Following its introduction in 2008, real-time payments will continue to dominate the digital payment trends for 2019. With 41 instant payment schemes in place around the globe, including the US, China, Europe and Australia, the demand to send and receive funds in real time has reached ubiquitous levels – and for good reason.
With traditional nine-to-five hours and a 5 day working week being replaced by increased opening hours and a flexible timetable largely dominated by going digital, the way we work has changed dramatically. Consequentially, this has impacted the way in which we work, live and socialise. The demand for pending transaction periods to be effectively removed means businesses can enjoy consistent cash flow and greater money management. Additionally, this convenience has transcended to personal payments, giving individual’s greater control of their finances.
So, how is the real-time payments trend set to change in 2019?
In partnership with digital payment gateways, the world’s leading banks are poised to leap into real-time payments. This has led to predictions of greater competition between banks to dominate the digital finance sphere. Rather than financial technology (fintech) companies becoming banking competitors, these will be working in tandem, benefitting both parties.
As for the increase in instant payment schemes around the world, France, Hungry and the Netherlands are set to embrace real-time, cross border payments throughout 2019. Canada’s initial real-time payments phase is set to go live by 2021, while Peru and Colombia exploring schemes in a similar vein.
Increased security breaches
Whether you’re online shopping or travelling light and easy with your digital wallet, the contactless payment trend also lends itself to the issue of security – and the increased risk of fraud. Current methods of prevention and security will continue to be tested against the increased prevalence of real time payments.
According to BioCatch Chief Cyber Officer Uri Rivner, this increase in technology use and cyber-crime may extend further than just your digital wallet. So, what’s to blame? As Uri stated to Forbes magazine, the culprit lays in appliances connected to the Internet of Things (IoT).
“IoT-connected appliances such as refrigerators and washing machines already produce unattended payments that the user cannot personally verify. Fraudsters see this vulnerability now and will begin to take advantage of it.”
Furthermore, these unauthorised security breaches are predicted to surpass more than just IoT devices making fraudulent transactions.
New authentication methods such as biometric fingerprint, voice and facial recognition – all of which have been proven to increase fraud prevention in the digital era – will also continue to face the test of cyber-attackers eager to cash in on the newest (and consequentially, perhaps the most vulnerable) payment trends. While many predict the threat of attack on digital payments is going to get worse before it gets better, 2019 is set to be the year merchants begin to invest heavily in digital security.
Meanwhile, in the world of online direct debit payments, platforms will continue to test and improve their methods of security. Additionally, by empowering business owners to increase their knowledge and awareness of cyber-attack, these platforms will continue to provide an extended service of convenience and security to their users. For example, the Ezidebit Merchant Trust Initiative is a program developed to educate and inform business owners of their responsibilities when managing cardholder data. Alongside educational tools, guides and security awareness training, this program also offers 24/7 access to cyber security experts, as well as discounted cyber liability insurance (an increasingly important asset for online business owners to attain).
According to BlueSnap, businesses have, on average, five gateway processors and four acquiring banks. This acquirement may have occurred as a result of one gateway not having all of the resources needed to operate effectively, thus adding another into the payment process. Instead of a simple payment process, this multiplicity has resulted in a tangled web of system operation.
Throughout 2019, more merchants are predicted to streamline their financial operations by investing in simple payment solutions. This allows for greater customisation, meaning business owners can effectively cover everything they want to offer – from direct debit through to invoicing and reporting.
Simplification through a trusted payment provider will also enable business owners to take greater control of their operations, with high importance on the purchasing process. To complement this, payment gateways are tailoring their systems to encompass greater usability.
For example, Ezidebit’s automated direct debit payments system is designed to integrate with existing business software, eliminating the need to re-build your online business from scratch. Combined with 100% automation for payments, this provides business owners with consistent cash flow, as well as greater control of finances for improved business operations. To ensure the safety of cash flow, this renowned payment gateway system is also equipped with the highest level of bank security, as well as Level 1 PCI and DSS compliance. This assures security not only for incoming and outgoing payments, but also for your data.
Big technology breaking into payments
Consider some of the largest companies online – Facebook, Apple, Google and Amazon. Collectively known as the Big Four (also FAGA or GAFA, depending on who you like most), these companies dominate the digital world, renowned for driving a large amount of growth in technology. In their mission to capture the masses, the Big Four have also made the leap into online purchases, each customising their own path to payment. These systems It’s easy to group the Big Four into a monopoly, set to dominate the world of online payments, however we must consider the fact that these are all separate companies, each vested with their own vision, mission and target market. For example, Google Pay created its payment system in partnership with financial tech company Braintree and online payment provider eWAY.
With bank utilising the platform to transmit payments to merchants via your smartphone’s near-field communication (NFC) chip, Google Pay is otherwise used as a digital wallet, and is compatible with MasterCard, Visa, American Express and Discover cards.
To rid yourself of plastic and go digital, payment methods like Google Pay and Apply Pay (which, combined, make up 96% of the mobile market) simply require you to download their respective apps, load up your card information and pay via a ‘tap and go’ system.
Making the leap from providing customers a streamlined checkout experience, Amazon Pay has recently branched out to offer fellow online business owners the opportunity to invest in their payment platform. Partnering with Alexa, Amazon Pay’s digital payment platform targets the demographic of merchant users via engagement, recommendations and order status notifications.
Going one step further than extremely targeted advertising, Facebook has also stepped into the online digital payments space, adding their own digital payment platforms to their messenger platform (used predominantly for splitting dining bills and sending gifts of relatively small monetary value). Despite Facebook Marketplace – otherwise known as your local eBay – not implementing its own digital payment platform just yet, we suspect it’s only a matter of time.
In terms of becoming one of the big payment trends of 2019, the Big Four are tipped to continue down the path of purchasing. Expect to see more streamlined paths to purchases and an increase in promotion. Between searching, shopping and scrolling, you’re bound to find yourself utilising one in the near future.
Whether you’re considering an increase in security, streamlining your purchasing methods or fully embracing payment automisation, start with Ezidebit. From direct debit to BPAY and ecommerce, this payment gateway provider offers you tailored payment solutions for your business. Stay ahead in 2019 and find out more.