Fintech is transforming the financial services industry and will continue to do so as the industry makes the shift to promoting innovation. Fintech products improve the ease with which people can make cross border remittances, automate regulatory functions, increase the number of data points used to make loan decisions and more.
As far as Fintech payments are concerned, Payment trends have been changing with paper money giving way to innovative payment solutions whereas digital wallets and contactless payment tools with secure digital payment have become the order of the day.
Fintech payments in 2019 are expected to transform our vision of digital transactions and digital payment due to the rapid growth of cryptocurrency, the main driver of changes in the payment systems.
Changes have been moving all the aspects of financial transactions:
- Receiving and sending payments;
- Enhancements within the infrastructure;
- Highly developed payment services;
- Unconventional customer experiences;
- New forms of collaborations in the FinTech industry.
The best merit of using cryptocurrencies and tokens in payments is moving away from traditional banking and its inborn regulations. Companies and individuals prefer a more democratic way of managing funds, which has become a reality, thanks to disruptive innovations in payments.
Impact of Fraudsters on Payments investment!
With the rise of digital payments, fraudsters have developed refined attacks to whip consumer and corporate digital payment account information, driving up the cost of cyber-security as well as fraud losses. Hence, secure digital payment options is the need of the hour.
Fintech innovators are continuously developing solutions that use acoustic analysis, biometrics, geolocation, and behavioral traits (swiping patterns on a smartphone) that not only provide improved fraud avoidance in customer authentication but also develop the customer experience over traditional easily forgotten passwords. FinTech’s, banks, payment processors, merchants will invest a lot in these solutions in 2019 given the growing magnitude of losses and brand impact of major fraudulent events.
Traditional Plastic Card Getting Extinct!
QR code-based transactions lead the Chinese urban payments landscape, changing the market entry calculus for the US-based card brands.
Major portions of US online transactions use payment credentials stored online with Airbnb, Uber, PayPal, Amazon, Starbucks, or others and research has made known once the card is set, it stays top of the eWallet. In Europe open banking will make a possible new account to account payment schemes, eliminating the card in the transaction for facilitating easy payments.
Card issuers will have to perk up strategies to not only get to the top of digital wallet, but stay there through rewards partnerships, co-branding, and also auto-provisioning of card credentials. However, the long-term impact is likely a drop in interchange fees. Payment service providers would go on with focus on flexibility, offering a menu of services to enable least cost routing, back-end bank integration, rewards integration, payment settlement to multiple merchant sub-accounts and prepaid account management.
The latest generation of virtual bank institutions has made a significant difference in the financial sector over the past few years. Unlike high-street institutions, conversational banks completely operate in the digital realm and have no brick-and-mortar outlets.
From secure digital payment to easy payments payment trends of FinTech payments definitely going change for better in 2019