Swiping a credit card at the checkout counter is no longer the only way to make a purchase. With recent advances in technology, it may not be long before shoppers do not even need to interact with sales staff or checkout clerks. 2018 is paving the way for a variety of new payment trends.
To put it in perspective, the global value of mobile and wearable payments is expected to reach near $95 billion this year. It is also expected that half of all consumer markets will use mobile or wearable payment options by the end of 2018. Given these predictions, it will be important to keep an eye on alternative payment methods throughout the year.
Emerging Payment Trends
The emerging payment methods of 2018 are seamless, automatic and easy. The following payment methods are gaining popularity by merchants and shoppers:
- Wearable payment options that allow users to download payment apps to their watches and other wearable devices
- Contact-free payment channels including fobs, smart cards and mobile devices that use radio-frequency identification (RFID) or similar technology to allow people to make in-store payments without actually stopping at a checkout counter
- Platforms that allow for instant payments make it possible to complete financial transactions online or through apps in real time
How New Payment Methods Increase the Risk of Payment Fraud
Technological advances in payment methods mean that payment information is being transmitted through new means. While the ability to make payments instantly is appealing, it also creates new and interesting risks. Hackers are finding ways to exploit weaknesses in new forms of technology. Given these risks, big data is playing a major role in payment fraud prevention. Platforms that use big data to analyze and monitor the information and interactions that are handled via these new forms of payment are able to detect abnormalities as they happen. While traditional methods for preventing credit card fraud are still relevant, advances in seamless payment methods require additional data analysis and consistent monitoring.
Each of these emerging methods are being embraced by retailers, financial institutions and enterprises in all sectors. They are changing the way people send money, receive money and make purchases. Through removing the time and hassle of waiting in lines, new payment methods offer benefits for both consumers and retailers. On the same hand, these new methods also introduce new risks for safety and security.
As new payment trends emerge in the new year it is important to keep an eye on how enterprises are preventing vulnerabilities and keeping information protected. 2018 will be an exciting time to experience fast and easy shopping choices. Reshaping how payments are received will play a key component in the success of these new opportunities.