The shape of things to come

Technology in the world of payments is evolving more rapidly than ever, so it’s essential to keep an eye on payment trends to stay ahead of the curve.

Payment trends have implications for more than just the financial industry: as payments evolve, more industries find ways to monetise and companies find new ways to optimise their software or customer experience through payments.


So, what is expected to happen in 2020?

Payments will become invisible for a seamless customer experience

As the customer experience continues to be a major topic in payments, and as competition expands, customer experience is becoming the prime competitive differentiator. Enhancing the customer experience is reaching a new stage – which is developing payments technology and therefore producing invisible, frictionless payments. For a while there have been just two primary payment experiences – going into a store or shopping online, but now with embedded payments those experiences are starting to blend.

In many cases, customers don’t even have to input their information to pay – as it can be automatically loaded from eWallets. Software has also evolved so that it can be embedded easily into applications that enable industries that are less payments-oriented to incorporate a frictionless payments experience. Plus, mobile payments will be a major trend in 2020 as things such as API enable a unified mobile payment experience.


Gen Z, the digital-first generation will hit its prime spending years

Members of Gen Z are people born from 1995-2015 and are true digital natives as from earliest youth they have been exposed to the internet, social networks and mobile systems. In 2020, Gen Z will account for 40% of global customers! For anyone taking payments, consumers are likely to care more about social and environmental issues and less about digitalisation or sharing information online.

To keep one step ahead of the demands of this gigantic group of shoppers, businesses will need to innovate their use of payments and become fully digital.


Payments will start to appear in places you’d least expect

Look out for payments appearing in places that you’d least expect such as in intelligent cars. This year you may be able to pay for things such as petrol, parking and road tolls without lifting a finger to reach a payment method.

Both fraudsters and fraud prevention services are getting smarter

Experts agree that fraud will continue to be a hot topic in 2020. Being able to balance customer experience with data security is an ongoing challenge in the financial services industry.

In 2020 there are two key areas that businesses need to focus on the use of AI in fraud prevention and that fraud data can deliver key business insights.

Cybercrime and fraud threats are evolving in unexpected ways for retailers who accept digital payments, which is why digital businesses are increasingly turning to AI to help them make faster and better decisions. This is particularly vital when it comes to approving good transactions and rejecting fraudulent ones.

At the same time, businesses are discovering there is a ‘gold mine’ of data that comes from analysing their payments fraud. Many analysts now realise that fraud data can do more than stop fraud – it can also reveal hidden insights from within the overall business.

In 2020, more companies will start to use data generated by their fraud solutions for higher-value activities that solve complex business problems and derive added value from their fraud protection efforts.

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