Digital payments have emerged as the clear champion in helping people deal with payments during the pandemic. The ease and convenience that digital payments have provided customers have cemented their place in the payment industry. Let’s take a look at how we can improve the customer experience in digital payments.
Digital payment options have gained popularity in recent years, and with the outbreak of the Covid-19 pandemic, user adoption has shot through the roof. Aside from convenience, digital payments provide contactless transactions, which many customers today seek.
With most purchases still taking place online and physical stores adopting digital payment, it’s a system that’s here to stay. The digital payment market is expected to exceed USD 167.6 billion by 2030, up from USD 77.9 billion in 2019, with a CAGR of 14.5%. This article will examine how digital payment technology could be enhanced to increase usage and improve customer experience. After all, the easier and faster a payment method is, the more likely it is to gain traction among users.
Digital payments must become more secure to achieve widespread adoption. Although digital payment solutions are becoming more popular, the risk of fraud remains high. To make digital payment options truly global, uniform policies and global standards for cross-border payments must be developed.
Adequate safeguards should be in place to thwart security threats. Predicting potential breaches and prioritizing customers’ security (especially for those who shop via E-commerce and mobile apps) guarantee a positive user experience. It will relieve customers of the worry they are currently facing regarding data theft.
The best payment technology is one that you don’t notice when you’re using it. The digital payment experience must be improved by reducing the effort required to use the technology. Amazon’s one-click purchase is an excellent example.
Payment technology could be improved by incorporating device compatibility. People use various types of electronic devices to make payments. This can cause issues because certain websites and apps perform better on iPhones than on Android devices. Examine what you can do to remove potential roadblocks so more customers will use digital payment methods.
QR codes have enabled new “touchless” digital payment methods, limiting the spread of Covid-19. QR codes, offered by leading payment companies, are expected to gain traction as they improve the customer experience even while providing a safer way of making in-person payments at every point of sale. More than half of all E-commerce payments globally will be digital-wallet-based by 2024.
Customers expect secure payment processing, and people in business must safeguard sensitive customer information. Biometric authentication addresses both concerns through facial recognition, fingerprint scanning, heartbeat analysis, and iris recognition. Biometric authentication restricts identity fraud and theft, which can boost consumer confidence and increase the use of digital payments over time.
Source: Mastercard
Banks, insurance companies, and governments can’t conduct important transactions using only passwords and digital signatures. To avoid fraud, widespread adoption of video-based authentication of a person that will be reliable remote will be required.
A significant number of online customers are forced to abandon their shopping carts due to lost or forgotten passwords. This is a major issue for the E-commerce industry, especially during Covid-19. Passwordless authentication would result in a much more secure and zero-friction process for customers, resulting in more sales for merchants.
As people begin to prefer digital payments over cash transactions, analyze the importance that mobile will play in your strategy. When customers make digital payments on mobile devices, one-time passcodes can be easily delivered to add an extra layer of security. This safeguards the information of businesses and consumers, resulting in secure transactions and greater consumer trust.
Another way to improve the customer experience is to automate the process to be entirely touchless from start to finish. If there’s one thing, we’ve learned from our new remote environment, relying on paper-based systems is not sustainable. The two most common digital payments (in-app and online, which are used by 57% and 53% of customers each) are from remote shopping models, which are also the fastest-growing. To avoid friction, even complex invoices, such as utility bills, should be captured and paid electronically.
By using the native method with each platform, you reduce user friction. When shopping online in Safari, use Apple Pay, but in Chrome, use Google Pay or even the credit card stored in your Chrome profile. Support native device mobile payments in stores. Once users develop these new habits, they will tend to favor them because they are faster than pulling out a credit card.
During the pandemic, digital payments have skyrocketed, as has fraud trying to target the channel. Digital payment providers and banks with mobile apps which initiate transfers must invest in risk analytics, machine learning, authentication, and orchestration platforms. This will allow them to monitor activity in real-time and prevent cybercriminals from committing fraud.
The use of mobile or wearable devices can aid in advancing digital payment technology. However, the security barrier will need to be overcome to allow this technology to be read everywhere. This will optimize both the shopping experience and digital payment methods.
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