Europay, Mastercard and Visa (EMV) technology is based on smart payment cards, also known as chip cards. Another name for EMV technology is integrated circuit chips or IC cards. The chip is the feature that stores the data.
Cards are inserted into the reader. For added security, a pin or a signature may be required. As an added bonus, EMV cards contain microprocessors so cardholder and offline transaction validation is possible.
EMV technology is an advanced development from storing all the data in the card’s magnetic strip.
Devices such as Alexa can do a lot more than put on a relaxing playlist. Voice assistants are also able to receive voice commands to make service transactions such as ordering food or booking a taxi.
The first smart speakers were primitive in graphic design but have since developed rapidly. A recent survey revealed that 35 percent of consumers use voice assistants to buy products such as groceries and clothes.
This behaviour makes smart speakers a digital trend, especially when it comes to making purchases.
- Facial recognition
- Voice identification
- Fingerprint scanners
- Eye retina scanners
Mobile point-of-sale (mPOS) technology is another digital payment method rising in popularity. Vendors in all settings have started to accept payment through mobile phones.
The portable point of sale plugs into a smartphone or tablet and operates as a register. Businesses that do transactions on the go and outside of a specified geographic location find this payment method particularly useful. For example, market vendors and food trucks.
All that is needed is an internet connection, a debit or credit card reader and an application downloaded to the mobile device.
Artificial intelligence (AI) and machine learning (ML) offer a safe and secure payment method. These methods offer convenience by integrating chatbots for virtual assistance. They also offer added security by flagging unusual transactions.
AI has had a big impact on technology industries. Fintech, in particular, has high expectations for AI benefiting digital payments. By fighting fraud intelligently, powering better customer service, and driving digital transformation.
The virtual wallet saves a person’s payment information on a smart device. The individual can then send and receive funds through a digital payment system.
Not only are transactions quick, easy and convenient, but e-wallet payments also offer other benefits. For example, the system offers discounts, gift cards and other consumer deals.
Using a mobile wallet offers convenience, security, and low cost transactions. Often all that’s needed is a single tap on a screen.
Near Field Communication (NFC) technology is a contactless communication technology that works using a radio frequency field. NFC technology’s purpose is to exchange data between two devices using a basic touch gesture.
This method of payment makes NFC technology an effective contactless option. The process is quick and easy. NFC in mobile apps is revolutionising the payment system by enabling transactions without hassle, fuss or high costs.
Digital payment technology is a foundational pillar in the development of fintech. Several companies have invested in making online payments secure, convenient and easy. The joint effort of big companies has increased the development of digital payments across the world.
These are a few of the digital payment trends in 2021, and more developments are expected to emerge. Keeping security and convenience at the heart of these advancements, it’s exciting to see what the future holds.