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.
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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.
Definitely very exciting and the way of the future! I’m certain the future of payment technology far exceeds my wildest imagination!
Interesting! Technology really does affect every aspect of our lives, doesn’t it? I can’t imagine what things might be like in 10 years or so…
It can be hard to keep up with how money is changing. I have a lot to learn.
I use Squarecash on a daily basis! I love it. I asked my dad if he ever thought he’d see things like this when he was a kid and he said it’s nothing that was even in his mind at the time.
I am one of the people who benefit from online payments whether it’s for an outgoing payment for purchase or service that was provided to me and vice-versa, payments are made easy.
Definitely, a way to connect people from all over the world.
My kids definitely use online banking more often than I do. I never thought about how the new way of banking and transacting would be affecting everything else.
I have heard a lot of cryptocurrencies but wasn’t really aware of its effects. Loved your detailed post on online payments.
I am certain cashless payment technology has a colossal future. Great article!
I really enjoy learning new things, I’m all new in online payments and business. But I like it. Your site is really a smart place to spend time in.
I am looking forward to the cashless future. It should help some stuff in world
Online payments is definitely the way of the future. Somehow though there’s a comfort in paying the old fashioned way.
Yeah, i agree with you!
I do agree that millennials will drive the much delayed transformation in banking … and I’m thankful for this, although I don’t use banks, just credit unions which are a little friendlier.
I like paying online, but I also like paying everything in person.
Paying online really has changed overtime, that is defiantly very cool and a great read, thanks for sharing all this!
To be honest this all makes me nervous. My husband is really into this entire subject and would really enjoy this article. I’m definitely going to be sharing it with him.
Technology and more specifically the internet has made all the possible. We are heading to a paperless currency, the money we knew will not exist in the future, this is exciting and fearing as well. Though cryptocurreny has grown exponentially over a short period, there are still reservations on its reliability. these issues if catered well can help change the money market.
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