Bitcoin, NFC, and voice-based payment, the digital mobile wallet solution of the future will have all these and many other features. In recent years, technology has evolved to facilitate people to make payments by using multiple options. As the smartphone user’s expectations and demands keep on changing rapidly, we have got innovative ways for payment in the mobile wallets.
Today, we witness a transformation of money from the physical form to digital form. In this age of digitization, the concept of digital money becomes rapidly popular across the world and the mobile app development company integrates smart features to make the payment experience more convenient and safer than ever.
In the past five years, we have seen an exponential increase in the popularity of digital wallets. The year 2019 has remained a milestone year for customized mobile payment solutions. As the year 2020 comes nearer, newer trends are getting ready to make the digital mobile wallet more advance and convenient for the users.
Here are the top five wallet app development trends set to rule in the year 2020. If you are planning to bring a mobile wallet for your customers, these trends will remain helpful for you.
1. Increase in mPOS (Mobile POS) devices
Mobile-based payments also include Mobile Point of Sale or mPOS. Talking about mPOS, these wireless devices offer a simple and convenient way for merchants to accept payment. These portable units can be taken anywhere for accepting payments from customers.
All they need is the Internet to work seamlessly. These devices are way better than a traditional in-store payment system.
Enhanced security and increased convenience are two big reasons for the growing popularity of mPOS. The brick-and-mortar stores, small retailers, healthcare service providers, charity organizations, and service providers also rely on mPOS. It is expected that by the end of 2021, the number of mPOS units will exceed 27 million globally. This is possible thanks to the growing usage of credit and debit cards for payments.
2. Prevalence of Biometric Authentication
Fingerprint scanner, retina scanner, and voice-based authentication are no longer new terms for smartphone users. Both Android and iOS platforms offer these features to enhance the security of devices. These biometric authentication methods can act as additional safety features for making online transactions more secure.
The BFSI sector will certainly consider integrating biometric authentication system to enhance the safety of online payments. You can hire mobile app developers to implement some or all authentication features. In 2020, we can expect that the biometric authentication system will replace the legacy PIN system. Banks are therefore keen to add these features in apps.
The major reason for the prevalence of biometric authentication features is people have already accepted these features. As a trustworthy method, biometric authentication will remain highly useful in the mobile wallet app.
3. Advent of Machine Learning
In the year 2020, don’t get surprised if you find the ML-based features in the mobile payment apps! The wallet app development is getting ready to integrate the features of ML in the mobile wallet app.
ML can remain helpful for detecting fraud or suspicious transactions from hundreds of thousands of daily online transactions. The BFSI sector can be a great beneficiary of this technology and secure their transactions through a proper scanning.
The Machine Learning-based software can analyze various online transactions stored by banks and financial institutions. Gradually, the software can mark the difference between normal and fraudulent transactions in real-time.
Credit card companies can also leverage the benefits of ML software in the digital mobile wallet solution. Evolving ML technology can help the BFSI sector to safeguard mobile payments and find fraudulent transactions immediately in the year 2020 and beyond.
4. Speaker and Sound Wave-based payments
It all started in the year 2014 when Amazon launched its smart speaker for the first time. After a couple of years, Google and Apple also joined the race by launching Google Home in 2016 and Apple Smart Speaker in 2017 respectively. Today, smart speakers have mainstreamed in many US homes.
Statista has revealed that 82% of people have used the voice assistant to get information. When it comes to online payments, about 28% of the users have made direct payments and sent money through smart speakers.
You may argue that this percentage is quite low as compared to other online payment options, but it is fair to mention that this number will certainly increase in the near future. As compared to other traditional options for online payments, speaker and sound wave-based payment options are more secure and convenient for people.
A recent prediction about smart speakers has revealed that the usage of smart speakers will increase from 18.4 million to around 78 million users by 2022. Simply put, the trend of speaker-based payments is here to stay.
5. Cryptocurrency support
We all know about bitcoins and other cryptocurrencies. SMEs and even startups have also started to accept cryptocurrency. In the coming time, this trend will grow and we may have many cryptocurrency-based wallet app solutions.
As per Statista, the number of cryptocurrency wallet solutions have recorded a massive increase from 6.7 million in 2016 to 42 million in the year 2019.
When cryptocurrency and blockchain concept will be integrated into the mobile payment technology, chances are fair that we will have highly secure transactions at fairly lower costs. The reason is simple. The blockchain concept eliminates the need for any third-party to make online transactions happen.
The small and mid-size businesses, as well as startups, will avail the advantage of these features to reduce the transaction costs. This trend will remain to continue in the future.
Apart from these most noteworthy trends, we should also keep international trade in mind while developing mobile payment systems for small businesses and startups.
It is because many SMEs can expand their global footprints with ease in today’s data-driven age. Such international trade will give rise to international remittance. In the US alone, the estimated total amount of remittance will increase up to $143000 in the year 2023.
Also, the sub-Saharan African region has witnessed a higher adoption rate of mobile wallets at 79%. It directly impacts the remittance industry and in the coming years, we will have robust mobile wallet solutions to meet multicurrency and international remittance-related requirements effectively.
Digital mobile wallet solutions gain ground swiftly across the corporate world and among individuals. These solutions can be rightly considered as a future of online transactions. In the coming time, we will see the implementation of many technological advancements in mobile wallets. It’s interesting to see the impact of these major trends in the digital wallets of 2020.
@2021 Solution Analysts Pvt Ltd. All Right Reserved