Top trends in Payments since the Pandemic.

The global pandemic of COVID-19 triggered a massive transition to digital channels, which changed nearly every aspect of our existence. This change includes how we do business, entertain ourselves, communicate with one another, and also how we trade. During the pandemic, the world witnessed a shift in payment patterns as well. Both the merchants as well as the customers picked up the pace to evolve with changing market conditions and started opting for digital methods of payments. In this blog, we are going to talk about the various upcoming trends in the payments landscape, and how they’re changing the way we do business.

Trending: Buy Now Pay Later

BNPL basically lets a buyer to buy something now and pay for it over time in installments. Traditionally, the concept of fixed installment payment options was limited to big-ticket items. But, with the rapid development in e-commerce and cash digitalization over the past few years, many retailers have lately adopted BNPL as a payment option that may be used for any transaction, no matter how little. In 2022, BNPL is expected to be one of the fastest-growing and significant payment trends, and we can say with certainty that this concept is here to stay.

The availability of BNPL as a payment option online is one of the biggest reasons for its rise as a payment method. Installment payments used to be largely a stand-alone payment option available in-store at the point of sale. Online BNPL payments are on the rise, with BNPL payments estimated to account for around 24% of all worldwide e-commerce transactions by 2026, up from 9% in 2021.1

This year, we expect BNPL to rise, especially as credit card companies roll out installment plans for their customers, giving them additional options to use their current credit lines in a BNPL style.?

Trending: B2B Payments

The B2B payments sector has been left behind as all of the innovations in FinTech and Payments have been primarily focused on, in the regular world. We forget that B2B customers are the same people who have access to top-tier financial services in their everyday life and that the fragmented B2B experience irks them. As a result, the payments industry must shift gears and provide B2B payments with the same degree of authenticity, reliability, and speed. In the near future, we may expect a greater emphasis on personalization, customization, and agility in B2B, especially as the demand for these services grows. To fulfill the demands of vendors and suppliers, B2B payments must undergo a digital transition in 2022.

Businesses are finding that their workers need to maintain their accounts receivable and payment functions outside of a physical office as a result of the shift to a more remote workforce during the pandemic. The answer with corresponding benefits is to digitize B2B payments, including accounts payable, accounts receivable, expense reimbursement, and employee-initiated expenditure.?

According to Capgemini forecasts, worldwide B2B non-cash transactions would climb to approximately 200 billion transactions by 2025, up from 121.5 billion in 2020. 2

Trending: Contactless Payments

With everything going on in the world today, individuals are attempting to go contactless in every way imaginable. According to the National Retail Federation, 67 % of retailers in the United States already accept contactless payments in some form. According to Visa, contactless payments account for 75% of in-store transactions in Europe. Not only that, but according to Masterclass, the UAE had a 100 % increase in contactless payments in March 2020 compared to the previous year.?

As a result, we expect a surge in NFC (near-field communication) EMV, the contactless payment technology. It allows consumers to make payments by waving or tapping their smartphones; as a result, tap and go QR codes and contactless cards will become more popular than ever before. One of the main reasons why the customer demand for contactless payment methods is on the rise is social distancing and other contactless COVID protocols that still remain. Even smart watches and smart speakers that allow you to make payments, in the same way, might become popular.

Trending: Cryptocurrency

Cryptocurrency has got to be one of the most powerful and important trends, that has the potential to bring an everlasting revolution in the payments ecosystem. Despite its infancy, cryptocurrency has piqued the interest of consumers, investors, developers, policymakers, and just about everyone who has picked up a newspaper in the previous year.?

Cryptocurrency, in our opinion, marks the start of a new era of technology-driven payments market that has the ability to disrupt traditional market tactics, long-standing corporate practices, and established regulatory approaches, all to the advantage of consumers and macroeconomic efficiency. Cryptocurrencies have the potential to provide consumers with unprecedented access to a global payment system that can be used anywhere, at any time, and where participation is limited only by one's ability to use technology rather than having a credit history or a bank account.

Summing up

If the previous two years have taught us anything, it's that the future is difficult to fathom and much more difficult to forecast. As already established, digitalization of everything – including payments – has played a crucial role in keeping people connected and businesses functioning since the pandemic. Talking about payments, the near future seems to be shaping up with innovative ideas and technologies along with the growing opportunities with emerging trends like BNPL, B2B Payments, Cryptocurrency, Contactless Payments, and many more.

Payomatix introduces a single payment solution for its merchants, comprising a single API with all gateways integrated, allowing a merchant to spend less time switching and gain more profitability.? We give the merchant the ability to choose the payment gateway they want to use, the one that best suits their risk appetite. The merchant can select one or more payment gateways at a time and has control to make changes accordingly. Our goal is to revolutionize the payments industry in India by offering unique technical API solutions to merchants across India. We support retailers who expect global solutions in their expansion. To know more, do visit us at www.payomatix.com or contact us at [email protected] .