The next decade marks an incredibly important time for the digital payment industry. We are looking at not just remodelling of the current digital payment system but also a massive wave of advanced digitization and a heightened focus on digital payment experience. Online payment systems, cryptocurrency, improved fraud prevention, and more will be the prime focus in the next decade. A revolutionary global effect has been made by mobile apps like Pay2Go and PayPal on the way to make mobile payments. Banks, financial institutions, fintech enterprises have been benefitting from open APIs and fintech megatrends and applications while fintech has transformed the financial services industry immensely. Here are the most crucial five digital payment trends that are set to revolutionize the industry even further.

In the wake of a fast-moving world that’s increasingly looking to add as much convenience and ease to their lives, people are looking to do more in one single go. This need to do more is where bundled financial services will come into play. We will soon be using mobile payment apps with a single interface for multiple cards and bank accounts. Users can easily switch from one bank account to the other using a single tap.

Users will be able to view aggregated information and easily switch between one account to the other seamlessly. Such bundled services add additional value to the user’s experience of digital payments and help them pay as they go. Users won’t have to log into multiple online payment gateways to get the job done.

How Bitcoin transactions work is no secret to the world anymore. This decentralized platform of digital payment was adopted and rejected alike. However, cryptocurrency has continued to become a rising point of interest in the digital payment industry since it is not and cannot be regulated by a central financial institution.</p.

With Bitcoin becoming more energy-efficient and fast, it is expected to gain more widespread adoption in mainstream digital mobile payment methods. The adoption of cryptocurrency is already picking up speed in the countries where Bitcoin is accepted. Moreover, it’s not just Bitcoin but also other cryptocurrencies that are expected to serve as great digital wallets shortly. They offer higher security (two-factor authentication) than credit cards and are also decentralized. Thus, traditional financial institutions won’t be able to restrict its price movements.

Plus, they also won’t have any control over transaction or processing fees when making payments via cryptocurrencies, thus eliminating these extra charges. Soon, this innovatively creative online payment system will witness a boost in its performance and usage.

New innovations in fintech have enabled businesses and fintech startups to serve customers in novel ways. Banks, financial institutions, fintech startups and businesses have utilized fintech namely Artificial Intelligence (AI) predictive analytics, blockchain, cryptocurrency, mobile payment and social data analytics to provide superior customer experiences (CX).

As customers are businesses’ primary source of profits, market value, and growth, they need to be handled with. Before delivering the wants of the customers, businesses need to identify their deep-rooted desires and needs. In accordance with a Gartner study, 89% of global companies are expected to compete primarily on customer experiences and business leaders are becoming more proactive in finding new ways to enhance the customer journey. The widespread applications of Fintech are redefining the way businesses connect with their customers.

AI predictive analytics enhance customer experiences

Fintech is the driving force behind innovation and impacts every aspect of a company’s operations, including its ability to influence and enhance customer experiences. By 2025, as many as 95% of all customer interactions will be through channels supported by artificial intelligence (AI) technology.

Using customer data for analysis based on Artificial Intelligence and machine learning helps predict customers’ needs and real-time product feedback. Take the algorithms of services like Netflix and Spotify as examples, customers’ actions, such as watching a certain show or skipping certain songs, impact the next recommendations they will receive. Things change quickly based on customer feedback and preferences so businesses can capture what customers want at the exact moment. Also, Artificial Intelligence and machine learning can be deployed to provide intelligent, personal and informed customer experiences at any touchpoint along the customer journey.

Meanwhile, Artificial Intelligence technology helps transform customer service by making it automated and fast. AI-powered conversation agents and chatbots are used in diverse customer engagement scenarios as they are curated to simulate human interactions and offer real-time responses around the clock.

Blockchain technology creates novel business models and reshapes customer experiences

Blockchain technology has fascinating applications to proceed to the formation of contracts and lower transaction costs to reshape customer experiences. Smart contracts are a way for machines to enforce and execute contract terms and make payments without human involvement. A study by Santander has revealed that the Blockchain will slash infrastructure costs for customers to make payments and proceed securities trading as well as regulatory compliance by $15–20 billion a year by 2022.

The application of decentralized public ledger in blockchain technology allows for the emergence of entirely new product offerings and novel business models such as crowd-lending, as well as peer-to-peer (P2P) banking and insurance. Also, fintech start-ups have utilized blockchain technology for faster, safer and more transparent transactions and lower costs for customers in transactions.

Cryptocurrency lowers transaction costs for customers

Cryptocurrency like Bitcoin is a digital or virtual currency designed to work as a medium of exchange in blockchain technology. It uses cryptography to secure and verify transactions and it is limited entries in a database that no one can change.

The transaction costs of cryptocurrencies are low and making payments with cryptos can proceed worldwide. Cryptocurrencies can be stored in a digital wallet that customers can manage from a smartphone or they can store cryptos in digital wallets.

Meanwhile, digital and mobile payment are growing their market shares. It is a sign that consumers are ready to adopt these fintech technologies for daily use. Even though peer-to-peer payment companies initially only targeted younger consumers, it seems that more people have also started to use the technology for daily transactions, thereby removing the middlemen and bringing down transaction costs.

Businesses connect with customers with superior data analytics

The best way for businesses and fintech startups to boost customer experiences is to connect with them emotionally. With data analytics on customers’ preferences and behaviour, businesses are empowered to use these insights to create exceptional customer’s journeys. Marketers can utilize data to understand relevant customer needs that they can touch.

Businesses can also leverage social media data for enhancing deeper customer engagement/ segmentation and driving personalized sales outreach and lead nurturing. Businesses can leverage tactics from monitoring different social channels for posts to sophisticated sentiment analysis tools to analyze what a customer is thinking.

In conclusion, fintech is a game-changer for customer experience in almost all sector. New innovations in fintech have empowered businesses and fintech startups to offer superior customer experiences in novel ways. Businesses are willing to embrace creativity offered by fintech and go beyond the norm to stand out from competitors with richer customer experiences.

In a competitive market place, customer experience and satisfaction are always important to drive business growth. Those businesses which keep abreast of fintech megatrends and embrace innovative solutions can enjoy sustained customer loyalty.

 

Drop us a line at info@ndngroup.com to learn more about how our innovating technologies thrive your business in the era of fintech.