In 2016, the Indian government announced demonetization of old 500 and 1000 bills. All the old 500 and 1000 notes submitted to banks which, at that time, covered 86% of all circulating money in India. The new 2000 bills were launched and distributed in dribs and drabs.
But the problem hadn’t solved because merchants refused to accept 2000 bills as they had left no change of 100 bills for return.
At that time, Paytm, a mobile wallet app, was the only company which offers mobile payments. But most people were not using it because they didn’t know about it. Paytm taught people how to use their wallet. Soon it became widespread as shoppers and people started using the wallet for money exchange. Eventually, the problem had been solved.
See, how digital payments solve a big country’s problem. The new payment methods are easy, fast and more importantly safer than the cash. Now when cash has become old school, India, along with the world, is moving to a digital society.
The new technologies could reduce fraudulent activities which are the primary concern of financial companies and banks.
There are many of them but given five future payment technologies have the potential to be the new face of our currency. Here are these:
- Future Payment Cards will show you stuff you want to buy with extra security.
- Using Mobile Wallets have some cool benefits too.
- With cryptocurrency, you don’t need PayPal or any banks to pay for a transaction.
- Hands-Free Payment – An upgrade of Contactless Payment.
- Payment will be done by personal assistants with a voice command.
1. Future Payment Cards will show you thing you want to buy with extra security
A payment card is a traditional way to make payment for many years, yet there is no sign of its elimination. Despite the popularity of online payment, many people still prefer to use credit cards, especially millennials.
According to a survey, when millennial were asked to use credit cards over the next five year, 77% showed their interest to do so.
Aware of the fact, the companies are rolling up their sleeves for making our payment cards smarter.
Recently, MasterCard came up with a payment card with a screen which will show you the advertisement of your favourite products. Also, they introduce a biometric system on payment cards for fast and secure authentication.
Such advancement suggests that we will have a smart card which knows what we want to buy.
Despite these upgrades, losing them is something you couldn’t stop. But MasterCard has a method to find your lost payment cards now.
So, it is sure that the payment cards will be paying your bills for next 5 or more years.
2. Using Mobile Wallets have some cool benefits too
The number of mobile wallet users is increasing as it provides some advantages other than doing payments.
A digital wallet makes you free from carrying your payment card everytime you go outside.
The security is another benefit of a mobile wallet. Though it could be insecure it is still considered safer than payment cards.
Another advantage of having a digital wallet is instant payment. You can add money to your wallet and then make a payment in a single click as on Amazon Pay.
That’s why online service companies are providing integrated wallet within their apps to make fast payment.
The mobile wallet is the most popular and most used payment technology in current time. And besides financial companies, tech companies are also working on the mobile wallet and making them better.
Like Google Wallet will have an offline mode for making payment in the absence of internet.
3. With cryptocurrency, you don’t need the third party to pay to
Cryptocurrency like bitcoin can be a world’s market currency for exchange goods. Though it got the bad reputation of being used in Silk Road, now many big companies are using the currency for selling services and products. And its price is also proof that people are investing in it.
Steam, Microsoft, Overstock, Virgin Galactic, eGifter, Wikipedia, Tesla, MIT, and Naughty America are some of the companies which accept bitcoin.
Besides, there are some benefits of using bitcoin and another cryptocurrency.
First, you are anonymous during a transaction. There only requires a public and a private key to send or receive currencies. Hence, it is used for illegal business. Another benefit is that it doesn’t need a third party for a transaction, so you will not be paying additional charges which go to a third party like PayPal or a bank. However, it will take a low transaction fee but it too low because of its decentralized nature.
Third, the platform it uses for the transaction – Blockchain – consider impossible to hack as people always solving billions of equations to confirm a transaction.
4. Hands-free Payment – An upgrade of Contactless Payment
In the near future, the digital wallet will become smart enough to make a payment itself. The aspiring hands-free payment technology can pay your bills in a store without taking out the phone from your pocket. The technology is an upgrade of contactless payment as it doesn’t make you stand in a queue for paying.
Google recently introduced this technology with its patent that will help a person to purchase things without getting in any line. Soon, their wallet will make hands-free payments.
Besides, Amazon already introduced a hands-free payment system with its prototype grocery store – Amazon Go – in Settle, Washington last year. People found the idea impressive as they don’t have to stand in a cue for making payments.
Another amazing payment method was prototyped by Alipay which offers smile-to-pay, a facial recognition system, for payment. The first service of its type debuted at KFC’s new restaurant called KPRO in Hangzhou, China.
The payment system doesn’t require any wallet for even smartphones for paying. You just have to enter your phone number associated with your Alipay account and smile a little meanwhile a large screen will confirm your identity and payment as well.
5. Payment will be done by personal assistants with a voice command
This does not seem secure now but this will be the future of payment technology. Personal assistants become smarter with more learning, and soon they will be doing our payments with our command.
Amazon Alexa already has this feature as it can pay your American Express card payment with your one command. Besides AmEx, Capital One has been doing the same earlier this year.
This is in initializing stage but soon enough, there will be Google Assistant, Siri, and other smart assistants which will be doing your payments.
These payment technologies have a good potential to change the payment system. Today, a person only wants an easy and secure way to pay. Many people still feel insecure to do online transactions. If these technologies will success to make people move to online payment, then it will change the way we pay.
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