Transformation of Digital Payment System

Technology has always been a game-changer in the world of digital payment. Needless to say, that the revolutionary mechanism is reshaping the world of online payment since the birth of the internet. Thanks to the industrial revolution that has compelled the world economy to revamp throughout. The typical transaction system also underwent a massive change. The transaction industry has undoubtedly gone through constant changes from cash transactions to check payments and then gradually shifting to the digital payment system.

It’s for more than the last five decades or so that the need for a more convenient, secured, digitally regulated mode of financial transactions propelled a shift in the way people purchase a product or service and pay for that immediately after buying the same. The recent COVID-19 pandemic has zero in on the importance of the debit or credit card payments.

Let’s dig deeper into how technology has forced the monetary system to transform over the period.

7 Most Widely Used Digital Payment Methods

Point of Sale (POS System)

Almost all of you have used this flexible POS system in retail stores, hotels, malls, restaurants, and in a lot more other places. In the digital era, carrying cash has become a rare sight worldwide. In the sudden outbreak of deadly COVID-19, this system has become one of the most trustworthy media of transactions as it won’t call for any physical exchange of the currency. However, you need to stand in a queue but still think about the bliss of not carrying the physical card along with you. The most modern version of this POS transaction system is Mobile POS. A user doesn’t even need to stand in a long queue, and still, a sales staff will able to receive the payment from any location of the particular store.

EMV Technology

Europay MasterCard Visa (EMV) is another widely used digital payment system considered one of the safest payment systems. This EVM technology has been reducing the fraudulency eventually. Known as the IC Card or Chip Card payment system, the transaction can be done in two ways. One is by physically inserting the card into the machine, and the other one is a contactless transaction system. Near Field Communication Technology helps to authenticate the Chip and Signature Card. In this way, this digital payment system has kindled the industrial revolution.

Mobile Wallets

These Mobile wallets are one of the most popular and widely used media of digital payment. In a nutshell, this payment method can be called as a virtual version of your original wallet that you tend to carry out whenever you step out. A user needs to carry his mobile phone to pay the bill for the goods or services opted by them. A Unified Payment Interface acts as the standard id for all your transaction-related details.  You need to set up a pin, and the specific amount will get deducted from your registered bank account.

Peer to Peer Payments

Peer to Peer money transfer is an excellent method of fund transfer. The desired amount will directly get credited into the beneficiary’s bank account. You are right; Paypal, Venmo, Zelle are a few prominent examples of this underrated fund transfer method. A user can use any credit or debit card to transfer the amount to the receiver’s bank account. This process can be done with a few clicks or taps from your mobile or desktop. This method is most prevalent among those who want to transfer money overseas.

AI-Based Voice Payments

Well, it is the most common sights so far- “Alexa, pay my electricity bill,” a scene that you can instantly connect with. After sopping through a mobile app, you mostly try to find out those android apps that can do a favor by paying the bills with the help of integrated Voice Assistants. Equipped with AI technology, this system is backed by Smart Speaker. Amazon, Apple, Google, all these renowned names are already ruling this voice-based payment industry. This digital payment system has a bright future as more than half of the population is comfortable in a voice-based system.

Biometric Authentication

Biometric is not only being used by the organizations to track the attendance activities of their employees. This one has become one of the most credible methods of debit or credit card payments. Just like the attendance management system of your workplace, this biometric-based digital payment technique incorporates physical attributes like your handprint, fingerprint, sometimes even voice. The features will be unique for each person. This digital payment process is undoubtedly up for bringing the industrial revolution by combating security related threats.

Internet of Payments (IOP)

A revolutionary technology LIKE the Internet of Things (IoT) has brought an industrial revolution by inventing the Internet of Payment (IoP) to take care of the financial transaction. Maestros of the debit/credit card payment industry show how in the all-in-one method of card payments.

Key Takeaways

The digital payment industry has reached a specific point where it has become the core of the payment process. The day is not so far when this smart card technology will bring the industrial revolution once again.