We are in a time of rapid digital evolution. New innovations and technologies are speeding through the payments industry. Solutions that traditionally take years to implement are now being tested and rolled out in a matter of weeks or months. This new normal won’t be going away any time soon.
Take a look at where the future of payments is headed.
The Future of Payments
Some of the hallmarks of the future of payments include “greater speed, transparency, and efficiency for the entire industry.”
Fintech and real-time payments are transforming an industry that was historically slow to change in the past. Physical cash use declined over the last several years, and many businesses and health experts actively discouraged its use in the last year.
Payment Provider Diversification
Because of the increased integrations, consumers are relying on apps and other mobile payment options. Typically, someone’s “primary financial institution” has been defined as whatever institution housed the checking account.
But the rise of payment apps like PayPal, Venmo, Square, and Stripe means there are tons of deposits being housed within those apps.
And these new providers are faster and less bulky than past alternatives. More and more payment services are built on cloud-based technologies, which means no waiting for days to see transactions hit your accounts.
The Importance of Cloud Tech
Banks have been slow to migrate the bulk of their data and processes to cloud-integrated solutions with only about 20% penetration in banking moving to the cloud. This gives fin techs and other smaller payment processors a big advantage.
Cloud technology will be a cornerstone of the future of payments because of its features: enhanced customer experience, safer transactions, and increased efficiency in transactions, transfers, data analysis and more.
As more financial institutions come to rely on cloud technology, they will continue adopting a strategy for progressive modernization. Rather than gutting their programs and building everything back up from scratch, there will be a gradual shift from the old to the new.
Artificial Intelligence
“Most financial institutions don’t use [artificial intelligence] to pursue real digital transformation, but rather to make incremental changes, mostly for cost reduction. Payments offer a way to tap AI’s potential,” says The Financial Brand.
Artificial intelligence is in the earliest stages of becoming part of the future of payments. It won’t revolutionize processes, but it will likely be a vital tool in the effort to enhance customer relationships and experiences.
AI will likely become the most popular interaction your customers initiate with your brand and your payment processor. It can also be a great way to help your customers keep track of and improve their financial health!
Embrace the Future of Payments with ReliaFund
Are your business and its online processes user-friendly enough? Potential customers are now in the mindset to move on, rather than to push through the difficulties. It’s more important to have a helpful and easy payment system in place, both for you and for your customers.
Streamline your payment processing with ReliaFund’s all-in-one platform. You can process credit card, check, online, recurring, and ACH payments.
Contact us to learn more.