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The way we pay for products and services has radically changed over the years. Today, the payments industry has slowly replaced cash with digital transactions. The increasing reach of the internet along with the ongoing technological revolution in the payments industry have facilitated and accustomed individuals with the use of digital means for payments and online shopping.
So, what's next?
At the time of this post, the digital payments industry is predominantly dominated by smartphone-apps based digital wallets which can be used for an easy and convenient method of payments on the go. It is, therefore, natural to wonder what the next big thing in the world of digital payments will be. Below, we list some of the top technological features and trends in the payments space which we believe will change and positively impact this industry.
Artificial Intelligence (AI) In The Payments Industry
Artificial Intelligence was originally invented to improve the machine execution of recurring tasks based on past data and has the primary intent to produce more reliable and stable results. This original objective evolved into more complex mathematical modelling which by learning from past data is able to forecast all the best possible future outcomes and provide recommendations.
Due to the nature of the recurring individuals’ behavioral patterns in respect to money management, payments systems are likely to benefit from AI capabilities. Through AI the payments system can collect useful data and provide the service providers with precious information to better serve their customers and enhance user experience.
According to AWS Director of Deep Learning Dr. Matt Wood, Artificial Intelligence (AI) is likely to play a significant role in uplifting the payments industry in the upcoming years. Amazon with its Web Services, for example, has already been using AI to analyze the user behavior in order to enrich the user experience through service personalization.
The use of AI-powered chatbots is another example of how Artificial Intelligence is becoming a common functionality chosen by the service providers such as banks to enhance the level of interactions with the clients while they perform digital payments, checking account balances and so forth.
DCI Ecosystem, is a good example of how an AI-driven investment ecosystem can provide a comprehensive digital experience to its users in a secure and transparent (blockchain) environment. AI plays a central role to interconnect the functionalities of the ecosystem and to help process millions of data for an optimal client experience. Portfolio optimization, risk-based Stocks Picking, Robo-Advisories are all tools developed with AI that will help investors and investment seeking businesses reach their investment goals.
Beyond Traditional Devices
Most of the young generation banking customers use their desktop or smartphone devices to perform online transactions and payments. In the past this was done with a single device in isolation, whereas, nowadays a transaction can be easily executed using different methods and multiple devices owing to IoT. The IoT technology is used to translate “human to machine, machine to machine, machine to human” instructions in the most simple, fast and “natural” way.
In the recent years the IoT (Internet of Things) has become a common approach to platform design, but what really is IoT? In simple terms it is a system where all devices are interconnected through the internet and each device can access the same information. The main idea behind the development of IoT is to make devices, systems and tools work for the human benefit, making interaction with machines feel more human. A good example is the voice-based personal assistant devices which accept commands through voice recognition; examples include Amazon Echo and Google Home, etc
In 2019 and the years to come, customers will increasingly interact with machines to process their payments in the most simple, secure, fast and easy way. This requires companies to implement technologies that support these services. The use IoT is fast spreading.
Mobile over Computer
In the last two years, mobile e-commerce has completely surpassed computer-based online shopping. This should not come as a big surprise, given that most of the world’s biggest e-commerce platforms are now available in mobile app format.
With China being the flag-bearer of this change, consumers in almost every country are now using mobile apps to perform digital transactions. The benefit of mobile e-commerce compared to the desktop is that users can shop anywhere at any time, increasing the opportunities of sales for the e-commerce businesses.
Many businesses aiming to increase transactions volume in the e-commerce market, needed to find a way to allow clients to execute their transactions on the move. This was one of the major drivers that attracted new startups to the world of mobile payments. A good example is how the e-commerce giants, such as Amazon, have addressed their customers’ needs and expectations with the creation of the “one-click” purchase.
In the upcoming years we will see more of such developments in the field of digital payments. So, stay tuned and open to the use of new technologies!