A lot of changes are happening in the Fin-tech industry and some are more obvious than others but what remains as clear as it’s always been is that, the customer experience is always center stage, whether by increasing security, offering new ways to pay or even by facilitating bureaucratic procedures that often held progress back.
Those are the top payment trends in 2020:
The Rise of Tokenization
Fraud will always exist but the increased dependence on tokenization is helping combat it. The main idea behind it is substituting the user’s credit card payment details with a meaningless set of numbers. What’s great about it is that, it’s generated per card, per merchant so even if a theft happens, the information will be useless to those who stole it.
Digital take over
Generation Z are responsible for almost 40% of ecommerce sales according to Accenture and to cope with the ever changing landscape, payment providers will have to keep up and continue to innovate to satisfy the generation that doesn’t know life before the internet.
Customer Experience becomes more important
Like all industries around us, when one thing works, it’s often copied, refined and upgraded and the payment universe is not so different. And one of the factors that will make the payment provider stand out from the competition is not only the USP’s but rather the user experience on the app or the website.
What you sell is definitely important but it’s arguably more important how you sell it. As mentioned earlier, tokenization is making its way into most recurring services and how easy it makes the payment process for the user is considered a deal breaker.
According to Deloitte, Financial inclusion may emerge as one of the drivers behind these strategies, especially as payments providers expand their efforts to service the needs of many and provide a customer experience that delivers ahead of the curve.
Fraudsters tend to, well, fraud
As the industry develops, so does the responsibility of taking care of your customers against fraudulent acts. And balancing fraud prevention with UX is an ongoing battle but one that never fails to offer new solutions.
AI is one of those solutions
Approving or rejecting transactions is not an easy task for businesses that rely on accepting online payments, that’s why AI is being used to help make that decision.
Nowadays mobiles are considered a new limb, which is why many companies when turning their focus to the mobile version of their business tend to offer real time rewards to new users. Such tactics push sales but when combined with a great user experience, you’ll guarantee their loyalty.