This edition of our bi-weekly payment news roundup focuses on payment innovation, as we discuss the recent exponential growth of various forms of digital payment methods. Read on for more details on these newer payment trends.
Innovative Technology Allows Novel Integrated Payment Options to Spread
The adoption of digital payment solutions continues to increase, driven partially by the millennial demographic, who puts an emphasis on a secure, frictionless payment experience. Bill Gajda, Global Head, Innovation & Strategic Partnerships at Visa, noted, “More than nine in ten (91%) predict that they will be using their mobile devices for financial purposes in three years' time, far above the national average of 72%.”
Global Wearable Payments Devices Market (2020 to 2026) - by Type, Technology, Application and Region - ResearchAndMarkets.com
Yahoo Finance summarizes a recent report from ResearchAndMarkets.com regarding the global wearable payments devices market. According to the report, the size of this market is expected to reach $42.9 billion by 2026. A form of contactless payments or “tap and go” payments, “wearable payments” refers to the technology that allows consumers to pay for a purchase using payment technology in a wearable device such as a smartwatch or wristband. The wearable payments market is expected to grow due to the increasing interest in cashless transactions.
Examining ingredients of a successful mobile payments solution
There are an estimated 64 million mobile payment users in the United States, and that number is only slated to increase. MobilePaymentsToday.com shares tips on what customers are looking for in a mobile payment solution. They note that customers’ biggest concern is security - following that, they are also looking for ease of use, speed, and responsive design.
ACH Network Sees Record Growth in 2020 to 26.8 Billion Payments
Nacha reports that in 2020, as the pandemic accelerated the shift to digital and electronic payments, 26.8 billion payments were made on the ACH Network - an increase of 8.2% over 2019. The value of those payments was up 10.8% in 2020, at $61.9 trillion. Further illustrating consumer and businesses’ new preference for electronic payments, the volume of ACH payments initiated by a paper check declined by more than 21% in 2020 - that volume now accounts for less than 4% of all ACH payments.
Learn how offering ACH payments can benefit ISVs.
Biometrics to secure over $3 trillion in mobile payments by 2025
New research shows that biometrics (such as voice, fingerprint, iris, and facial recognition) will be used to authenticate over $3 trillion of payment transactions in 2025 - up from $404 billion in 2020. However, the research also noted that getting consumers to accept and adopt biometric payment authentication methods will require a push from payment vendors and merchants.
As you can see, the payment technology landscape continues to evolve at a rapid pace. Global Payments Integrated is here to keep you apprised of these changes, as well as provide you with the latest in payment processing and commerce enablement technology. Contact us today for any of your integrated payment needs, and check back in two weeks for more of the latest payments industry news.