Alternative Payment Methods

Payment methods aren’t the same as they were and will not remain the same forever. They will keep on changing and innovating parallel to customers’ preferences. The customers have stepped into online payments after the demonetization in 2016, which COVID-19 has only accelerated in the past two years.

As per the studies, India has touched over 25.5 billion digital transactions in volume. As per the report of ACI Worldwide, the real-time payment share in online payments is likely to exceed 70% by the year 2025. Here in this article, we are going to discuss the trends that are shaping the future of alternative payment methods through different payment gateways in India.

What is an alternative payment method?

When a customer is paying for goods and services bought other than the cash method, it’s called an alternative method of payment. It includes Debit/Credit Cards, Net banking, UPI, QR, GooglePay, ApplePay, eWallets, and many more. At present, few cryptocurrencies like bitcoin are also considered to be payment methods. eCommerce websites that provide a variety of payment methods in their eCommerce payment gateway have the advantage of attracting more significant traffic to their website. Payment partners offer zero payment gateway chargesin specific methods like UPI, etc., making them more popular. Merchants are benefitted as consumers use these alternative methods frequently.

What are the key trends shaping the future of online payment methods?

Technological advancement has been an evolution in the financial and banking sectors. The publicizing of fintech has made these advancements more accessible for the past few years and helped businesses immensely to come out from the traditional brick-and-mortar model. Below are vital trends-

  • Enhancement through biometric authentication– This technology involves the biological characteristics of a user such as fingerprints, heartbeat analytics, face recognition, etc. Biometric authentication is on an upward trend due to the rise in theft and fraud, and it can become a reliable and secure payment option in 2022. Since it uses individual characteristics, it is proved to be a highly secured payment method.
  • The Gen-Z– The tech-savvy generation is used for customers who are between 7 to 20. People aged between 7 to 20 are said to be the digital generation. Gen-Z will have a significant dependency on quicker and more efficient technology and services. And hence, the demand for digital payments will continue to increase in the coming years.
  • The EMV technology- EMV stands for Europay, Mastercard, and Visa, and this technology has introduced the customers with a secured and computerized mechanism for payments. It is best known for its unique code, which is generated whenever a new transaction takes place. These unique and temporary codes enhance the security of transactions and show how they can manage bank account systems.
  • Mobile POS (mPOS)- Mobile POS aka Point of Sale is now proved to be a revolutionary technology that frees merchants from the traditional brick-and-mortar model and physical locations. The mPOS tech is expected to have a CAGR of approximately 19% from 2022 to 2026 due to its flexibility and streamlined processes, replacing central check areas. The sales staff is now equipped with mPOS devices, and the technology is making a huge difference.
  • Smart Speakers- Smart speakers allow their users to command instructions such as ordering food, cabs, weather and traffic updates, etc., and the users will receive a vocal response. According to Statista, the user percentage is 35% when it comes to purchasing homeware, groceries, and clothing, and 28% of the users send and receive money through their Smart Speakers. This is still a low percentage because many users don’t complete payments due to security concerns. As per the press release of TNS, 74% of users are not comfortable making payments over voice assistants. Despite these statistics, there is a bright future for Smart Speakers as big names like Google, Amazon, Apple are investing in building their advanced Smart Speakers. It has been anticipated that usage of voice assistants will be 77.9 billion by the end of 2022.
  • AI security and Machine Learning– There is still a segment of customers that does not want to shop online due to security concerns. Customers always prefer paying from a highly securitized eCommerce payment gateway.Payment technology is nothing without high-graded security. For that reason, many sectors are taking the help of Machine Learning and Artificial Intelligence.Machine Learning would be the first step for ultimately achieving Artificial Intelligence. Banks are now using AI to detect all possible threats to their customers’ data. The software detects fraud transactions on a real-time basis. In the coming years, top players in the market are set to use AI and Machine Learning to instantly see fraudulent payment transactions.
  • Mobile Wallets– It’s just like an actual wallet where you can pay and receive from the other wallet holder. Apart from that, you can also pay your utility bills, purchase tickets, get your bookings done, and do many more tasks instantly. In the future, companies will come up with brand-specific eWallets. Zaakpay’s payment gateway allows your customer to pay from a variety of eWallets such as GooglePay and Mobikwik.
  • Pay Later Option– This will immensely boost the company’s sales as customers don’t have to pay for the purchases immediately. The Buy Now and Pay Later option at payment gateways like Zaakpay attracts more users to the website and gets the products in their cart without worrying about payment.

As we can see, digital payments are the future of India, many new trends will come and go, but they will play a vital role in shaping the future of Indian digital payment methods. Zaakpay’s payment products will help you accept payments instantly from all over India. You can also get competitive pricing for payment gateway chargesif you have a business with a large volume of transactions.