Believe it or not, online payment technology are still in their infancy.
When you break it down, the ways that we’ve paid previous is all a bit traditional, especially when it comes to infrastructure. As banks have, and still largely are, the central point of finance, they never found a reason to modify their processes. That was until external competitors started challenging them to keep up with the trends.
Fast moving to now and FinTech is one of the hottest startup industries in the technology world. In a few years, everyone has started to grasp onto this trend, as CB Insights notes, investments in FinTech are up 19 percent this year solely.
Yes, you heard that right, this industry is going throughout some major shifts, as companies are gearing towards shifting how we look at not just payments, but how payments are made/what basics are behind them. It’s the difference between why sometimes when you pay somebody online, it comes immediately opposed to a day or two. There’s sincerely a lot of technicalities behind this (I.E., Account balance verification, identity verification, etc.), which is what everybody is trying to get up to speed on. And for some companies, they’re already ahead of the arc. Here’s how:
A Change in Banking Industry
One of the initial changes concerning the payment industry is how banks and customers behaviour is changing with one another. Quite simply, people have different expectations with how money should move, as well as how fast. This is a cross-generational phenomenon and somewhat that banks are trying to keep up with.
An excellent example of this is with how trendy online services have become. According to Bank Innovation, around 70 percent of millennial now do their banking online. This is playing a important role in how banks compete with one another, as their digital offerings are coming under much more concerned. This feature includes like peer-to-peer payments, savings plans, automatic bill pay, and even just updating account balances in real-time. And while a lot of banks are functioning towards considering how their FinTech goods can work internally, external efforts in the payments world should be taken note of as well.
Paying People Differently
A large part of how the payment industry is shifting is how people are able to pay each other, as well as how we pay businesses. It’s the initiative of how transactions are shifting. According to Business Insider, peer-to-peer payments solely are on pace to be worth $86 billion by 2018. And with the reputation of apps like Venmo, PayPal, and even Square Cash constantly on the rise, this trend doesn’t show signs of slowing down anytime soon.
Another feature of the payments industry that’s shifting is how most important purchases can be made in real-time while cutting out the core person. For example, CurrencyPay, an online payment system that not only finances main tools for businesses, but extends online payment methods from credit and debit cards to comprise ACH or wire, all the while reduces fees across the board. Innovations like these are going to play into how sales are completed faster via knowing the parties at hand.
Finally, lots of of us are possibly familiar with how people are paying businesses, with devices like ApplePay or AndroidPay allowing for cashless transactions. These services are acquisition ground in popularity as they’re not only easier but fetching safer as well. After all, credit cards are rather built on an outdated model, one that’s been approximately the same since the 1950s. However, outside just how people are paying, what they’re paying with is fetching a wild-west of sorts.
How Cryptocurrencies are playing a Role?
A massive change in the payment industry this past year has been the popularity of Cryptocurrencies, Tokens, and Ethereum. Pundits have argued, why there have been huge surges in the prices of stuff like Bitcoin, but that’s only piece of the story. The other segment is the very structure of how a Coin/ICO (Initial Coin Offering) is structured. These are the first of their kind in being both a publicly traded business as well as appearance of currency, cutting out the intermediary of how we conventionally think about money. And as noted by SteemIt, there have been 76 ICO’s this past year with a total assessment of nearly $800 million. The best part of this revolution is only at the opening, so it might not be a bad idea to study up on how you can be a part.
The way of our money is moving is shifting forever. What are the payment applications you’re most interested in or using on a day-to-day? Answer with your comments below.