Payments and Technology : Future-Shaping Trends

Staying abreast of payments and technology trends is challenging amid fierce competition and constant evolution. This article delves into essential trends banks must explore to retain customers and compete with fintech disruptors. The blog post outlines five pivotal trends influencing the payments industry.

Contact-Free Payments

The pandemic significantly accelerated the acceptance of contactless payment solutions, influencing the positive uptake of point-of-sale (POS) terminals in Africa. Consumers now express increased confidence in utilizing contactless payments for their daily transactions. Notably, there is a consistent and substantial monthly growth in contactless transactions across the continent.

Peer-to-Peer Payments

Worldwide, peer-to-peer (P2P) payments are gaining widespread popularity as consumers transition from traditional forms like cash and debit cards to digital alternatives. The pandemic has notably expedited the surge in P2P payments, and this trend is anticipated to persist in a post-pandemic economic landscape. Projections indicate that the global P2P payment market is poised to achieve a substantial size, reaching $9 trillion by 2030.

Open Banking

In recent years, open banking has experienced remarkable momentum. Consumers seek banks that provide products simplifying their lives and aiding in financial management. The advent of open banking has facilitated the creation of innovative technologies, leading to reduced costs and a more personalized customer experience.

Card Controls

Card controls have garnered widespread popularity as a banking feature. Offering control over the usage of debit or credit cards, this feature empowers users to manage when, where, and how their cards are utilized. With card controls, consumers can activate/deactivate their cards, limit usage to specific transactions, establish spending caps, and restrict international transactions. This not only enhances the personalization of the consumer experience but also provides users with the means to actively contribute to fraud reduction efforts.

As the banking environment undergoes changes, staying ahead necessitates embracing transformative trends. By focusing on innovation in contactless solutions, peer-to-peer convenience, open banking structures, sophisticated card controls, and state-of-the-art fraud prevention, banks can not only retain their customer base but also prosper in the face of fintech disruption. The future requires adaptability and foresight, and these trends position banks to spearhead the transition into a new era of secure and customer-centric finance.

Payments and Technology : Future-Shaping Trends