This guide outlines the changes and trends in payment methods that all businesses should be aware of.
One fact of life that we all must accept is that things cost money. You can set up regular payment plans to cover your bills, and there are several different payments methods, so you can choose one to suit you. However, technology and social norms are always changing. This means that your payment methods are going to change, often without adequate warning. An unexpected change could have negative ramifications for you, which is why it is important to keep up.
Trends in payment methods
This article will inform you of any recent changes to your payment method, so you don’t get caught out.
Contactless Payment
Contactless payment is not really one of the new payment methods. In fact, almost every new bank card and ePOS technology comes with this technology built-in. However, some aspects of this technology have had to change as a result of new information.
The contactless payment method was slow to take off in the USA. Only three percent of all stores accepted this form of payment, and it seemed that it would remain a niche concept. Unfortunately, recent events required the need for contactless payment methods more than ever. The number of stores that now accept contactless payment has shot up to fifty-eight percent in the last two years, and this percentage is only going to increase. The benefits of contactless payment are making themselves known the more people use it, so it might be time for you to get on board with the concept.
RFID Wallets
Staying on the topic of contactless payment methods, there was a reason why they were not favored in the beginning. The fact that these cards were so easy to swipe led to a few security issues. Anyone with scanning technology could walk up to someone and scan their pocket. There were spending limits put in place to protect people, but people were still having their money stolen.
Companies quickly identified this problem and made RFID wallets commonplace. An RFID wallet is made from a special protective material that prevents your card from being scanned from within. If these security concerns were stopping you from going contactless, you could now relax in 2022 with an RFID wallet.
Virtual Terminal Card Processing
Virtual terminal credit card processing is a long title that seems like it has no bearing on the average person. Card processing is administered by large companies that deal with heavy financial matters, right. Yes and no.
More people have begun working from home, which means that you will probably have to deal with clients worldwide. This can make accepting payment methods a difficult task. You can now add a virtual terminal credit card processor to your web browser. This allows you to receive online payments from a credit card in real-time without worrying about cybersecurity. There are many benefits to virtual terminal credit card processing, and you can learn more about these at Nada Payments. However, if you want a way to reliably accept regular payments from your customers, this processing method is how to do it in 2022.
More Digital Wallet Services
A digital wallet is a service that allows the user to place their money in a safe place until all security checks have been made and the transaction is complete. In short, a digital wallet is a middle man between the consumer and an online store. The first digital wallet services that represent the way we think of the service today came out in 2016. These wallets include Apple Pay, Samsung Pay, and Google Pay, although PayPal originated almost ten years previous. You may consider PayPal to be the first idea of a digital wallet. Its services were not refined until these other companies built the software you can use today.
As you can see, these payment methods are incredibly useful. Furthermore, the technology has improved to a state that can be easily replicated. Therefore, you will find that there are a lot more digital wallet services to choose from now than there have ever been.
NFTs
The cryptocurrency boom has persisted for at least five years now. More companies are being founded each day, but Bitcoin still reigns supreme in this area. However, there is now another form of crypto asset that works differently from the rest. This is known as an NFT.
NFT stands for non-fungible token. These are images created using pixel art, instead of digital coins, and the digital artist’s status determines the worth. You can create an NFT to represent anything, and your worth is only going to increase as you continue to add NFTs to the market. These are not seen as the huge investment that crypto was, but there is always time for it to grow. Also, these NFTs are also separate from the economy, which means that they are protected from any inflation or market crashes.
Cash No Longer As Popular
Physical cash is the second most used payment method in America, falling just behind credit card payment methods. While other payment methods are becoming more prevalent in the US, it may take some time for anything to catch up to cash.
However, the rest of the world is steering in another direction. Parts of Europe and Asia have embraced digital wallet services and contactless payments with open arms. You may not think that this is relevant, but the global economy does have an effect on local markets. As more people start to veer away from cash payments, the world gets closer to becoming a cashless environment. There are almost no benefits left to paying with physical cash anymore, so you may have to get used to these alternative payment methods as time goes on.
Summary
The payment methods that are tied to the economy are not going to go anywhere for a very long time. However, you will notice that the ways you interact with your money will continue to change. Try to keep these changes in mind moving forward so you can future-proof yourself beyond 2022.
